Healthcare deal points to ABS as critical tool in funding Covid economy

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By Jennifer Kang
16 Jul 2020

Bankers Healthcare Group (BHG) is preparing an inaugural securitization backed by loans made to high-earning medical professionals. The deal is the first in a growing pipeline of securitizations from the healthcare industry, ranging from pharmaceutical drug royalties to venture capital ABS, as Covid-19 draws attention to securitization as a funding source for a critical part of the economy, writes Jennifer Kang.

As the first issuance from BHG, the securitization is on the smaller side at $159.6m. The transaction is a mix of commercial and unsecured consumer loans made to high prime licensed healthcare professionals, including doctors, nurses and pharmacists. Most of the loans are originated by Pinnacle Bank, ...

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