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February 22, 2021 @ 7:38 am By Omar Faridi
An article from Global Capital notes that more securitizations of United Kingdom government-backed SME loans are being carried out in private.
Last month, Funding Circle had reportedly finalized a deal with
Sixth Street and
Barclays.
Since the UK’s Coronavirus Business Interruption Loan Scheme (CBILS) was introduced in 2020, it has become a viable investment opportunity for credit funds and various specialty lending platforms. That’s because these opportunities aim to provide (generally) higher interest rates and government guarantees for as much as 80% of the total loan balance.
The UK has quite an active market for non-bank lending platforms that are focused on serving SMEs, particularly in asset-based lending, and some of these non-bank lenders have been getting into the securitization market for funding.