[UPDATE] Subprime lender Progreso closes second personal loan ABS

By Matthew Scully
18 Jun 2014

Hispanic instalment lender Progreso Financiero has returned to the capital markets with a $100m ABS that draws from the $1bn in loans it has now made to borrowers. The firm's growth highlights the encroachment of non-banks into subprime and small-dollar lending and may facilitate new rounds of securitization as investors look to non-traditional ABS for a pick-up in yield.

The California-based firm sold a two tranche deal that will pay investors respective coupons of 3.5% and 6%, according to people familiar with the deal. Both notes are two years in maturity. Jefferies was structuring lead.

Progreso will also this week announce it has surpassed $1bn in loan ...

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