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CommonBond Issues its First Securitization of $100M

This student lender touts a perfect track record, with no defaults or 30-day delinquencies across 2,000 loans.

June 10, 2015 By Ryan Lichtenwald 3 Comments

Views: 49

CommonBond Logo

This morning, CommonBond announced its first securitization totaling $100M. The securitization comes with an expected investment-grade rating from Moody’s of Baa2 and from DBRS of A (High). This is the first time that Moody’s has issued an investment-grade rating for a first time issuing marketplace lending platform. Like several securitizations in this industry, investors will include institutional investors, banks, insurance companies, credit funds, and asset managers.

The most interesting aspects about CommonBond are their track record and borrower demographics. CommonBond, which was founded in 2013 has lent over $200M and has served over 2,000 borrowers. Of the loans they have originated, not one single loan has gone into default or experienced a 30-day delinquency. This is an impressive track record and there aren’t any companies I am aware of in this space with that kind of volume that can claim the same.

This a direct reflection of the high quality borrowers they lend to. They focus solely on graduate students, offering refinancing options to more than 700 graduate degree programs. Their average borrower statistics are equally as impressive as their track record, with the average borrower being 32 years old, having an income of $140,000 a year and a FICO score above 760.

CommonBond also supports education in other countries. For every fully funded loan on the platform, they fund the education of a student in need for a full year through Pencils of Promise.

It’s clear that several of the top student lenders are going the securitization route as a way to fund their loans. CommonBond has certainly proved itself as a platform that attracts high quality borrowers with a propensity to pay back their loans. You can learn more about CommonBond and their offerings in this post that discusses more details about their hybrid loan.

Filed Under: Peer to Peer Lending Tagged With: CommonBond, securitization, student loans

Views: 49

Trackbacks

  1. Goldman's Surprising Go-To Market Strategy in Online Lending - Credible Blog says:
    June 25, 2015 at 8:50 pm

    […] of student loan refinancing so far have shown the average borrower to have a credit score in the mid-700s with average income well over […]

    Reply
  2. From “P2P Lending” to “Lending Marketplaces”: the graceful dance has started | Daily Fintech says:
    July 6, 2015 at 12:27 am

    […] CommonBond announced in June the securitization of $100mil of online marketplace student loans. […]

    Reply
  3. CommonBond Picks Up $275 Million In New Lending Capacity | TechCrunch says:
    January 5, 2016 at 8:38 am

    […] Ratings agencies seem to agree with him with both of the previous loan packages that CommonBond securitized coming in with pretty high grades. […]

    Reply

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