JG Wentworth Issues $300M in Structured Settlement-Backed ABS, Surpasses $2B Since 2020
JG Wentworth has completed the issuance of two new Rated Variable Funding Notes totaling $300 million, backed by structured settlements, lottery winnings, and annuity payments. This issuance marks a significant milestone for the company, exceeding a cumulative $2 billion in 4(a)(2) asset-backed securities (ABS) since 2020 across 26 transactions involving over 30 institutional investors. This highlights the growing confidence among institutional investors in JG Wentworth's ABS platform and the strength of its asset-backed programs. The transactions are part of the firm's private placement market activity, focusing on securitizations exempt under Rule 4(a)(2) of the Securities Act.
JG Wentworth's ABS issuances utilize assets such as structured settlements and annuity payments to create investment opportunities in the private placement market. This strategy caters to institutional investors seeking alternative fixed-income investments backed by predictable cash flows. The company has maintained consistent asset performance and developed innovative transaction structures to adapt to evolving investor demands and market conditions. These developments reflect ongoing trends in securitization within the consumer finance and insurance sectors.
The company, with over 30 years of experience, specializes in consumer financial services including structured settlement purchasing and debt resolution, supported by a workforce exceeding 800 employees. The recent issuance further establishes JG Wentworth's role as a significant player in structured settlement and annuity-backed securitizations, contributing to capital market liquidity and offering customized financing solutions.
These private placement transactions remain unregistered under the Securities Act, limiting their offering and sales to specific exempt investors. Market conditions and customary closing requirements influence the timing and completion of such placements. JG Wentworth communicates forward-looking statements about placement expectations while cautioning investors about inherent business and market risks. Overall, these issuances underscore the expanding use of structured settlement and annuity cash flow assets in the ABS market, driven by investor appetite for diversified investment vehicles in the U.S. financial ecosystem.