Kaye Scholer was the exclusive sponsor of the “Securitization Spotlight Session: Marketplace Lending” webinar hosted by the Securities Industry and Financial Markets Association (SIFMA) on September 10, 2015. The program brought together key industry leaders to discuss how marketplace lending platforms originate loans, involvement of funds in marketplace loans and securitization of marketplace loans.
Finance department chair Henry Morriello served as the chair of the bank panel, which included panelists Timothy Madigan of Citi and Michelangelo Raimondi of Morgan Stanley. Their discussion on securitization of marketplace loans covered the following topics: the critical mass needed for a transaction; advantages and disadvantages of Section 4(a)(2) and Rule 144A placements; factors to consider in pursuing ratings of the securities; expectations about whether there will be transactions with more tranches in the future; limited historical performance data with respect to the underlying marketplace loans; how rating agencies/investors look at subordination/over-collateralization and excess spread levels; use of pre-funding accounts; and the degree of involvement by the origination platform in the securitization transaction.
SIFMA is a member-driven trade association that represents the financial services industry. SIFMA works to unite the collective interests of broker-dealers, banks and asset managers, and encourages the advancement of capital and financial markets.Webinar