Last week I wrote about SoFi and their plans to create a securitization of their student loans. Little did I know that another company has actually beaten them to the punch and closed on the first securitization ever of p2p loans.
Eaglewood Capital who I profiled in January, closed on a $53 million securitization deal this past Friday making it the very first such deal involving loans originated by Lending Club. I caught up with Jon Barlow, the head of Eaglewood Capital, to find out more.
While Barlow was tightlipped about the details of this deal he did provide some background. This $53 million pool contained loans that were part of the Eaglewood Income Fund I, LP, the flagship fund of Eaglewood Capital. The $53 million number represented approximately half of the total assets in the fund that launched in November last year. The fund invests in loans based on their proprietary credit model with a weighted average interest rate in the 12-14% range, meaning a B-C grade average.
One of the interesting pieces that was mentioned in the press release is that the loans in this securitization were from borrowers with a weighted average income north of $90,000. That is well above average borrower income for all loans, which is around $70,000. The loans in this securitized pool were exclusively 36-month loans purchased on the whole loan platform at Lending Club.