Julia D. Corelli, a partner with Pepper Hamilton’s Corporate and Securities Practice Group and co-chair of its Funds Services Group, was quoted in the October 7, 2016 Structured Credit Investor article, "What's in a Name?"
Julia Corelli, partner at legal firm Pepper Hamilton, comments: "Investors are hesitant over marketplace loans as an asset class because debate is still not resolved. Just as true lender issues - brought up by the Madden case et al - are hampering investors' willingness to buy securitised marketplace loans, so the unresolved debate around whether marketplace loans are whole loans or securities is a factor holding platforms back."
Corelli notes: "It's fair to say that these ongoing regulatory issues are hampering the development of the asset class and the opportunity for liquidity through securitisation. Given the business model of these companies, typically we would have seen them activate various channels to generate funding and liquidity. More active securitisation efforts would have been expected."
She continues: "Instead, there has been a weak uptake of securitisation and this is in part due to institutional investors wondering what marketplace lending is and still being unsure how to define it and, most importantly, where it is going to go, and therefore how to invest in it."