Now Enables Dynamic and Competitive Pricing Pre-loan Issuance
LendingClub Corporation, America’s largest online marketplace connecting borrowers and investors, announced the expansion of its LCX platform to make it easier for registered institutional investors to analyze, price, and bid on loans at the time a loan is originated (pre-issuance), down to the individual loan level.
When first launched, the industry first innovation LCX enabled the company to sell previously originated loans at dynamic and competitive prices (at, above or below par), from LendingClub’s balance sheet. For the first time, this expansion now allows LendingClub to sell loans at dynamic pricing before they are originated.
These loans do not hit the company’s balance sheet, helping LendingClub preserve liquidity. The LCX expansion also increases investors’ ability to evaluate and execute their purchase strategies with absolute precision in a real-time, data rich environment. Loans on this agile framework will be offered on the LendingClub marketplace multiple times per day.
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“As a technology-driven marketplace, we want to remove friction and encourage investors to trade electronically and with precision whether its pre-issuance or post-issuance, with LendingClub or each other. We believe this will result in increased liquidity of this asset class and add marketplace functionality that previously did not exist,” said Patrick Coicou, LendingClub Senior Director Electronic Markets. “We expect to continue to utilize new technology to make this asset both more tradeable and investable while improving the experience for platform investors. We believe this evolution will be a major part of our goal of continuing to provide market-based rates for borrowers and competitive risk-adjusted returns for investors.”
“We’re excited to continue working together with LendingClub to create market leading solutions,” said Gal Krubiner, CEO and Co-Founder of Pagaya Investments. “This LCX expansion is the next evolution in allowing investors to pinpoint risk and increase liquidity.”
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