SoFi Issues Record $2.6 Billion in ABS Notes During the First Quarter of 2018

SoFi announced on Monday it completed $2.6 billion in loan securitizations in the first quarter of 2018, a 35% increase over the prior-year period and its largest-ever quarterly ABS issuance volume. According to SoFi, during the first quarter of 2018, the lender completed a total of three securitization transactions, two student loan ABS offerings ($960 million SOFI 2018-A Notes and $869 million SOFI 2018-B Notes) and one consumer loan ABS offering ($774 million SCLP 2018-1 Notes). The SoFi 2018-B Notes marked the first time SoFi included medical residency loans as a part of the collateral.

SoFi shared it continues to be a top-ten ABS sponsor, ranking seventh among all sponsors as of March 31, 2018, behind Sprint, Ford, General Motors, Ally Financial, Santander and Citibank, and first among all online lenders. SoFi’s securitizations notably had 74 unique ABS investors during the quarter, 14 of which were new investors to the program. Ashish Jain, SVP of Capital Markets at SoFi, stated:

“Volatility returned to the credit markets this quarter, but investors continued to show a strong appetite for our securitizations, which allowed us to compete several large transactions. We are especially pleased that our investor base has continued to expand as more institutions recognize the strength of SoFi as a top ABS issuer of prime consumer credit.”

The online lender then revealed:

“SoFi’s new student loan ABS issues were aided by favorable credit developments from the major rating agencies last year. Moody’s reduced their net loss assumptions from 5% to 2%, and S&P from 4% to 2.25%, reflecting the continued strong performance of SoFI’s student loans and their consistent credit quality.”

In the first quarter of 2018, SoFi originated $3.6 billion in loans across its personal loan, student loan and mortgage products, a 27% increase compared to the first quarter of 2017. The lender added it continues to expand its membership community by adding over 220,000 members since Q1 2017 and bringing the total to nearly half a million members as of March 31st.

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