Market volatility may scare off some loan buyers, but as discussed in last week's newsletter, lower (or negative) interest rates for government bonds could be boon.
“If you’re a company that is selling loans every day, then a big risk-off move can be a problem,” said Jefferson Harralson, analyst at Keefe, Bruyette & Woods. “More cautious investors are a problem.” But one side effect of the Brexit-induced market tumult may help these lenders weather the storm: even lower, and in some cases negative, interest rates for government bonds and other debt. That, though, could help bolster demand for higher-yielding loans arranged by online lenders. Indeed, LendingClub and Prosper Marketplace Inc. have been raising interest rates charged to borrowers as a way to attract buyers.
http://www.wsj.com/articles/brexit-vote-may-sting-online-lenders-1467061656