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Why Marketplace Lenders May Snuff Out Credit Cards

By NICK CLEMENTS

These companies are targeting the most lucrative credit card customers: people with large revolving balances paying interest rates in the high double digits.


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Latest News

GE Capital Unwind Puts its Outstanding ABS at Risk: Moody’s

– The unwind will likely result in the sale or early liquidation of the securitization trusts and servicing platforms for outstanding deals backed by asset-based loans, inventory financing and equipment loans and leases.

Bleak Picture of Student Loans in N.Y. Fed Study

– Low-income borrowers are responsible for much of the recent surge in student loan defaults and delinquencies, according to new research by the Federal Reserve Bank of New York.

Ford Marketing its 1st Auto Lease Securitization of 2015

– Compared with automaker's most recent deal, completed in July 2014, the weighted average FICO score of borrowers in this deal has decreased slightly, to 742 from 746.

Sallie Mae, PHEAA Plan Student Loan Securitizations

– Pennsylvania's Higher Education Assistance Agency $621 million deal is backed by private loans; Sallie Mae's $704 million deal is backed by federally guaranteed loans.

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Featured Articles

Cost of Bullet-Proofing CMBS Triple-As Keeps Going Up

– Concerned about weaker underwriting in 2014 and 2015 CMBS conduits, rating agencies are demanding increased levels of subordination for what is known as the "junior" triple-A tranche.

New Hurdle to Wooing European CLO Investors

– EU regulators are considering changes to existing risk-retention regulations, potentially complicating matters for U.S. managers as they contemplate expanding into European markets.

In Tobacco Bond Workouts, Read the Fine Print

– Adverse developments may hit investors in longer-term maturities the hardest; it is not too early for holders to take a hard look at the applicable bond documents to evaluate both their rights and leverage in a restructuring or refinancing.

How CLO Managers Are Preparing for Risk Retention

– It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.

High Court Takes a Second Look At Second Liens

– Bank of America is asking the Justices to overturn lower court rulings that mortgage loans with a secondary lien on a debtor’s asset can be "stripped down" to zero when the collateral is completely underwater. The decision could affect an even wider range of second liens.

Snow Bank: Boston Takes Another Look at Catastrophe Bonds

– The Massachusetts Bay Transportation Authority had previously looked into cat bonds and decided not to pursue issuance, according to deputy general manager and chief financial officer Jonathan Davis. Then came 110 inches of snow.

A Deal to Reinvent the Subprime Mortgage-Backed Security

– If you thought the subprime mortgage-backed security was an artifact of the past, think again. Nomura Holdings and Angel Oak Capital have a deal that may help revive the part of the market that went bust during the crisis. Their success could encourage more banks to dip their toes back into riskier mortgages.

Federal Reserve Fix Means Smaller "Fire Sale" for CLO 2.0

– Non-U.S. banks don't have to sell holdings of collateralized loan obligations that don't comply with the Volcker Rule; U.S. banks still need to divest or amend the terms of such deals, however.

Here's What Happens to European ABS as Interest Rates Turn Negative

– In theory, asset-backed investors could be forced to pay for the privilege of holding these securities. Sounds crazy, but it's enough of a concern that several new deals contain provisions putting a floor on interest rates.

Leveraged Loan Settlement Times Improving, But Miles to Go

– Prolonged trade settlement times are a thorn in the side of the leveraged loan market; there are some recent signs of improvement, though settlement times still vary widely by agent bank.

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Current Issue

How CLO Managers Are Preparing for Risk Retention

It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.

Current Issue