Chinese online consumer lender Yirendai has announced progression toward securitization of a portfolio of consumer loans; the firm has transferred an existing trust fund of RMB300 million ($43.6 million) used to fund loans on its platform to Bohai International Trust Co., Ltd., and the firm has completed the issuance of asset-backed securities in the amount of RMB300 million through private placements. Source
Yirendai is being sued by shareholders for inadequate transparency, regulatory activity and risk management regarding Chinese government regulations; the company has requested the court toss the case; the case is focused on worst case revenue predictions that the company says were never realized. Source
Yirendai announced the appointment of Dr. Yichuan Pei as chief credit officer; Dr. Pei was recently vice general manager of Ping An Bank in Shanghai; "Dr. Yichuan Pei is a highly regarded credit expert with extensive experience in the financial industry. We warmly welcome him to join our senior management team. With Dr. Pei assuming his roles as chief credit officer, we are very confident to further enhance our market leading capabilities of credit underwriting and risk management," said Ms. Yihan Fang, chief executive officer of Yirendai. Source
The new agreement with PICC P&C would provide Yirendai with a performance bond for certain loans originated through their marketplace; PICC P&C agreed to reimburse investors should any losses occur because of due diligence issues; Yihan Fang, CEO of Yirendai, said, "We are pleased to begin working with PICC P&C on performance bond. We believe a strong alliance between our two industry-leading companies will enable us to provide higher quality products and services to our customers to better serve the large demand for personal finance." Source
In an opinion article, one investor shares emails that have been leaked at Chinese marketplace lender Yirendai (NYSE: YRD); leaked emails show the company's chairman requiring parent company employees at CreditEase to invest in a fund to purchase undisclosed US equities; the author states the fund is likely purchasing shares of YRD and presents his case for shorting the stock; the stock recently saw volatility following China's new regulatory guidance for P2P lenders. Source
Last Friday Peter and I had the honor of joining the CreditEase team on the NYSE floor to ring the...
[Editor’s note: This is a guest post from Mark Lusky of Mark Lusky Communications, a writing and marketing communications firm, operating since 1982....
The Chinese online lender issued over $2 billion loans in the quarter to over 200,000 borrowers; this represented year over year growth of 95%; 2017 total originations were $6.3 billion across nearly 650,000 borrowers; Revenue in the fourth quarter was $280.5 million and net income was $69 million. Source
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