Forgiven and forgotten bond buyers flock back to the debt of the online lenders

The initial appeal of emerging online lenders was that they would disrupt traditional credit markets. But after major setbacks last year, firms are adjusting to be a little more Wall Street and a little less Silicon Valley.

Changes include sticking to the risk of some of the loans they give, securitizing their loans – or selling them in packages – in-house rather than through third parties, and appointing veterans of banks and investment firms to senior positions.