The online student lender CommonBond will be selling about $100 mn worth of student loans assets to the investors, reported BuzzFeed. Commonbond was started in 2012 for University of Pennsylvania’s B-School graduates to help them refinance their student loans as securities. The securities may get a likely stamp of investment-grade approval from Moody’s, the ratings agency, writes Matthew Zeitlin of BuzzFeed in his report.
Finding investors for loan fundings is common in mature markets such as credit card loans, but not many marketplace lenders have been able to securitise their loans.
“We’re excited about tapping capital markets in a unique way, not a lot of marketplace lenders have leveraged securitsiation, and we’ll see more of it going forward,” CommonBond founder and chief executive officer David Klein told BuzzFeed News.
CommonBond is expecting to get Baa2 rating from Moody’s, according to BuzzFeed.
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