With continued growth of the marketplace lending ABS sector and repeat issuance from a range of firms, the market appears to have shaken off its label as an esoteric asset class. At the same time, a potential resolution to the ongoing Madden case suggests that the sector could finally be overcoming its reputational issues.
RK&O partner Vincent Basulto told Structured Credit Investor that, in general, the market has shaken off its label of being an esoteric asset class. While still relatively new, it has built up a bigger data set and has therefore managed to attain the status of a more mainstream asset class.
Mr. Basulto also acknowledged concerns about increased delinquencies, but noted that said delinquencies were generally on older loans and, therefore, older ABS. Mr. Basulto also pointed out that the securitisations are structured in a robust enough fashion that investors are sufficiently protected and platforms have also amended their lending strategy to reduce the likelihood of future defaults.
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