Cross River sponsors inaugural broadly syndicated securitization, CRB 2023-1
One of the first securitization of personal loans originated by a Partner Bank through a marketplace lending platform to achieve a AAA rating by one of the three major rating agencies (S&P) on the senior tranche of offered Notes
FORT LEE, N.J. - Cross River Bank (“Cross River”), a technology infrastructure provider that offers embedded financial solutions, announces its first broadly syndicated securitization, CRB 2023-1, backed by $250MM of personal loans originated by the Bank through the Upstart (Upstart Holdings, Inc. (NASDAQ: UPST)) platform. The milestone marks a significant step forward for Cross River in the world of asset-backed securities (ABS) and underscores its commitment to providing innovative capital solutions.
“Bringing CRB 2023-1 to market establishes a new funding channel for the bank, allowing us to independently secure asset-backed financing for our retained loan portfolios,” said Ryan Callahan, Co-Head of Capital Markets at Cross River. “While this securitization only includes loans aggregated through the Upstart platform, we plan to become a regular Securitization Issuer, leveraging the infrastructure we built here for assets the Bank originates and retains.”
This is the first securitization of personal loans originated by a Partner Bank through a marketplace lending platform to achieve a AAA rating by one of the three major rating agencies (S&P) on the senior tranche of offered Notes. Cross River is acting as the Sponsor and sole Seller and will hold the customary vertical 5% Risk Retention to satisfy US Credit Risk Retention guidelines.
“Obtaining a AAA rating (from S&P) on the senior security issued by CRB 2023-1 creates additional liquidity for the personal loan asset type, bringing in pockets of capital that may have otherwise been sitting on the sidelines.” said Callahan. “It affirms our dedication to delivering tailored solutions that propel the fintech ecosystem.”
Cross River is the named Servicer on the transaction, with Upstart acting as sub-servicer. Goldman Sachs & Co. LLC served as Initial Purchaser and Structuring Agent with Barclays Capital Inc. and CRB Securities, LLC—each serving as Initial Purchaser and Joint Bookrunner.