SoFi's second securitization courts controversy on execution and ratings

By Matthew Scully
10 Jul 2014

It took only 40 minutes for more than 30 institutional investors to take down $250m in bonds backed by student debt offered by SoFi, the US peer-to-peer lending startup. And it took only two months for Standard & Poor's to go from saying peer-to-peer securitizations were not ready to be assigned public ratings to agreeing to rate one, writes Matt Scully.

SoFi, which makes loans to graduate students using funds from their schools' alumni, wooed investors last year with its pitch of being a technologically advanced and socially conscious student lending platform. But it is said to have sidestepped bank partners and irked potential investors in what is ...

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