Stone Ridge Asset Management is eyeing a purchase of $1 billion worth of loans from LendingClub Corp (NYSE: LC).
Bloomberg, citing "a person with knowledge of the matter," noted Stone Ridge's large purchase could help restore confidence in
LendingClub's business among concerned investors.
Bloomberg added that there are other investors who are also interested in purchasing loans from LendingClub. The company's newly
named permanent CEO Scott Sanborn was quoted as saying on Tuesday during a 30-minute company presentation that the company's assets
"generate provides very attractive risk-adjusted returns and that hasn't changed" and that "different investors are coming back at
different rates."
Related Link: LendingClub
Confidence Issues Persist On The Back Of New Revelations
Sanborn also acknowledged an un-named asset manager plans on buying $1 billion worth of debt, likely Stone Ridge.
LendingClub also plans on spending $9 million on incentives to attract loan buyers while also spending $20 million to attract
and retain the company's top talent.
BTIG's analyst Mark Palmer was quoted by Bloomberg as saying in a note that LendingClub's event on Tuesday puts its "current
state of affairs into perspective."
Shares of Lendingclub have lost nearly 60 percent since the start of 2016.
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