A group of online consumer loans that were packaged into bonds is going bad faster than lenders and bond underwriters had expected, the latest sign that some startups that aimed to revolutionize the banking industry underestimated the risk they were taking

November 16
4 Min Read
  • Merchant banking firm Opus Bank completed a $509 million securitization of its multifamily loans through a Freddie Mac-sponsored “Q-deal” risk-transfer securitization, the company announced Tuesday.

    December 27
  • A decade ago, regulators were warning that CRE exposure could lead to earnings and capital volatility. Fast forward to today and regulators are expressing similar reservations, warning that areas such as multifamily could become problematic. Bankers, however, say they believe the industry is better equipped to handle an economic shock.

    December 27
  • Although subprime auto lending and securitization bear similarly troubling signs to the pre-crisis housing market, they clearly do not contain the macroeconomic risks posed by the mortgage industry nearly a decade ago. But investors may still not be in the clear.

    December 26
  • In case you haven’t been keeping track, Moody’s Investors Service downgraded about half of the guaranteed student loan bonds that it had put under review this year.

    December 23
  • Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds.

    December 23
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