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LendingClub Introduces Levered Certificates

Levered Certificates will consist of an equity certificate and a fixed rate note, they will trade under the ticker "LCRT"

July 22, 2019 By Peter Renton Leave a Comment

Views: 1,966

In December 2017 LendingClub launched their new certificate investment vehicle. This was a way for certain institutional investors to buy whole loans because the investment was structured as a pass through security with its own CUSIP and traded on OTC markets. These CLUB certificates became very popular and they have now issued more than $2 billion of these securities.

Today, LendingClub announced the next generation of these certificates: Levered Certificates. As the name implies this is way for investors get leverage on their LendingClub investment. This new structure will consist of two securities, an equity certificate that provides exposure to a pool of unsecured personal loans and a fixed rate note that provides stable term financing over the life of the certificate.

Both the certificate and the note will trade in the over-the-counter market with CUSIPs and are cleared through the Depository Trust and Clearing Company (DTCC).

LendingClub’s Chief Capital Officer, Valerie Kay, said this about the new program:

We continue to innovate on products and structures to enable more investors to participate in our marketplace and gain access to consumer credit. We expect our structured program innovation to further improve LendingClub’s balance sheet efficiency and reduce administration costs.

LendingClub’s Levered Certificates can be seen on dv01, Bloomberg and Intex with the “LCRT” ticker.

Filed Under: Peer to Peer Lending Tagged With: CLUB Certificate, lendingclub, Levered Certificates

Views: 1,966

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LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

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