Bond Buyers Flock Back to Marketplace Lenders’ Debt

Marketplace lenders, who last year saw significant skepticism mount around their offerings, have begun to see the results of changes made to their businesses to be a little more Wall Street and a little less Silicon Valley, according to a Wall Street Journal article. Changes include holding on to the risk of some loans they make, overhauling their lending criteria, securitizing their loans themselves, and naming Wall Street veterans to executive roles.

The Wall Street Journal reports that investors have generally cheered the changes, with more than $2 billion in securities backed by these loans have been sold since the start of April. This is already more than issuance for the entire second quarter of 2016, according to PeerIQ.

The most recent activity comes on top of $3 billion in bonds backed by marketplace loans that were issued in the first quarter of 2017, double the amount from the same period a year earlier.

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