
Securitisation losses rattle peer-to-peer lenders
Marketplace lending hit by downgrades, legal worries and questions over structure of deals

It's an all-too-familiar story. Lenders discover a new way to extend credit to consumers. Banks securitise the debt, bundling up the loans and repackaging them into marketable securities. The deals are rubber-stamped by credit rating agencies. Investors pile in, blindly snapping up tranches of supposedly safe debt that turns out to be anything but.
The recent turmoil in the world of marketplace
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