Weekly Online Lending Snapshot – November 17, 2017
The U.S. Treasury yield curve has flattened significantly over the course of 2017, and this week the spread between short-term and long-term rates reached a 10-year low. It was also reported that U.S. household debt reached a record $13 trillion in Q3, and that subprime auto loan delinquencies have skyrocketed at non-bank lenders. In more positive news, Experian and Moody’s Q3 2017 Main St. Report, states, “The overall outlook for small-business credit is stable.”
It was announced at Singapore’s Fintech Festival this week that a network of six Southeast Asian countries have formed The ASEAN Fintech Network to encourage cross-border collaboration. China-based online consumer lender LexinFintech Holdings, filed with the SEC to raise as much as $500 million in an initial public offering (IPO) in the United States. In Dubai, the Dubai International Financial Group (DIFC) launched a $100 million fund to invest in fintech startups. In the U.S., Kabbage announced that it received a $200 million revolving credit facility from Credit Suisse. PayPal and Synchrony Financial announced that Synchrony will acquire $6.8 billion in receivables, including PayPal’s U.S. consumer credit receivables portfolio.
SoFi announced the closing of its 11th securitization of 2017, a $727 million issuance of SoFi Consumer Loan Program 2017-6 (“SCLP 2017-6”) notes. It is also SoFi’s largest offering of securities backed by consumer loans.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend.