CircleBack and Jefferies deal heats up banks vs P2P debate

CircleBack Lending
By Will Caiger-Smith
25 Sep 2014

Fledgling US peer-to-peer lender CircleBack Lending has teamed up with Jefferies, under a $500m agreement that will see the investment bank acquire and securitize CircleBack’s loans for sale to institutional investors. The deal signals the start of CircleBack’s expansion and raises questions about banks’ future involvement in the nascent peer-to-peer market.

The agreement, the largest in the peer-to-peer business so far, comes as lenders in the asset class seek the backing of large institutional investors to make their businesses scaleable by reducing their cost of funding.

Starting from October 1 this year, Jefferies will acquire loans originated by ...

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