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

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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