According to the Wall Street Journal last night, J.P. Morgan Chase & Co. has agreed to acquire nearly $1bn in personal loans arranged by LendingClub. The portfolio, worth just over $900m, is comprised of loans to consumers with high credit ratings and was sold for a premium to the outstanding balance on the loans. In an announcement yesterday, JP Morgan said it would pay $1.5bn, or about $2.6b, in cash plus another $215m in subordinated notes.
According to the Wall Street Journal last night, J.P. Morgan Chase & Co. has agreed to acquire nearly $1bn in personal loans arranged by LendingClub. The portfolio, worth just over $900m, is comprised of loans to consumers with high credit ratings and was sold for a premium to the outstanding balance on the loans. The WSJ report suggests that the sale is being closely watched by credit markets as an indicator of the health of the market for online personal loans.