TRANSCRIPT: Liquidity Outlook (2nd Annual Investors’ Conference On Marketplace Lending)

In Featured, Marketplace Lending by Charity YoroLeave a Comment

The following is the transcript for the panel entitled Liquidity Outlook: Establishing a Secondary Loan Market held at the 2nd Annual Investors’ Conference On Marketplace Lending on December 1, 2016. Visit IMN’s website to listen to the full audio session. Participants Michael McLaughlin, Senior Managing Director (MACQUARIE GROUP) Rupert Taylor, Founder (ALTFI DATA) Joseph Besecker, Chairman, President & Chief Executive Officer (EMERALD ASSET …

Liquidity & The Secondary Market: Highlights From IMN’s 2nd Annual Investors’ Conference on Marketplace Lending

In Industry News, Marketplace Lending by Charity YoroLeave a Comment

  Earlier this month, the Information Management Network (IMN) brought together online lending platforms, asset managers, senior lenders, regulators, fixed income investors, and others at the 2nd Annual Investors’ Conference on Marketplace Lending in New York. In addition to discussions on sustainable financing, composite lending, and risk management, as well as a year-end review of marketplace lending, MonJa’s own James …

Life After Lending Club: How The Market Is Responding To The Problems Of 2016

In Industry News, Marketplace Lending by Charity YoroLeave a Comment

2016 has been quite the year for marketplace lending — beginning with Lending Club’s troubles in May, whose effects have rippled throughout the rest of the year, and continuing with external political factors affecting the global market (read: Brexit in June, the U.S. election in November). It has certainly been a difficult year for all players in the industry, as …

From Wall Street to Main Street: How will Goldman’s new consumer product, Marcus, fare?

In Industry News, Marketplace Lending by Charity YoroLeave a Comment

Goldman Sachs enters the consumer lending market with its new product, Marcus, rousing mixed responses from the industry. Last week, Goldman Sachs debuted Marcus, an online-loan service geared toward prime consumers paying down credit-card debt. Essentially, as representatives at Goldman put it, Marcus aims “to help Americans manage debt better.” In sum, consumers (typically those with a credit score of 680 or above) …

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Part 2 of 2: The Emergence of 40 Act Funds & What It Means For Marketplace Lending

In Industry News, Marketplace Lending by Vijay Rao, CFA, FRMLeave a Comment

This is the second post in a two part blog series that examines the “40 Act Funds”. In part 1 we examine the structure and performance of the funds in the UK and US. In part 2 below, we will delve into the implications of funds on marketplace lending. Go here to read part 1 Impact on investors, financial advisors, and lending platforms …

Part 1 of 2: The Emergence of 40 Act Funds & What It Means For Marketplace Lending

In Industry News, Marketplace Lending by Vijay Rao, CFA, FRMLeave a Comment

This is the first post in a two part blog series that examines the “40 Act Funds”. In part 1 of this series, we examine the structure and performance of the funds in the UK and US. In part 2, we will delve into the implications of funds on marketplace lending.  Introduction The first and second mutual funds (“40 Act …

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Changes in Lending Club Underwriting – Looking Beneath the Headlines

In Credit Risk Modeling, Industry News, Marketplace Lending, Risk Management by James WuLeave a Comment

The news at Lending Club was a shock to everyone in the direct lending world. The process failings and potential business / legal ramifications have been discussed ad nauseam – and they are extremely serious. Several institutional investors have pulled back on their purchasing programs, for good reasons. Lending Club needs to show investors that the same problems will not …

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Lending Club Performance – The Good And The Bad (Feb 2016)

In Credit Risk Modeling, Industry News, Marketplace Lending by James WuLeave a Comment

As I previously wrote, some of the recent coverage on Lending Club’s credit performance is somewhat one-sided, and we believe Lending Club’s loan performance is broadly in line with expectation. That said, the actual performance depends on the specific segment in question, which we will explore in greater detail in this post. Similar to what some of the commentators have …

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LendingClub did not “misfire” in their underwriting

In Credit Risk Modeling, Industry News, Marketplace Lending by James WuLeave a Comment

Late last week, there was a Bloomberg Business article on LendingClub’s recent “misfiring” of loan origination models. While I personally enjoy most of Bloomberg’s coverage of marketplace lending (positive or negative), this article appears to have taken a recent LC-Advisor report out of context. Below are a couple actual data points on LendingClub’s underwriting performance: 1. Consistent performance on quarterly …

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Measuring Who Prepays in Marketplace Lending: An Observation Based on Lending Club Loans

In Credit Risk Modeling, Marketplace Lending, Risk Management by Christine GaribanLeave a Comment

As an investor, it pays off to understand who prepays on personal loans. Prepayment is the early repayment of a loan by a borrower, often as the result of optional refinancing to take advantage of lower interest rates. Borrower prepayment means forgone interest income, and many peer-to-peer lending platforms don’t charge a prepayment penalty. Thus, the construction of an optimal …