With the growth of marketplace lending, institutional investors need to manage their risk exposure. It’s important to understand what makes this market different from other asset classes and how to employ tools and models tailored for its risks. Originally written by Katherine Heires and posted by GARP Risk Intelligence on November 19, 2015, this article highlights different specialized risk services and tools …
What’s The Madden With You?
The Madden v. Midland Funding, LLC ruling proves the importance of understanding the regulatory risk faced when pricing any asset class- especially in marketplace lending. Below is the MonJa analysis on how this ruling effects p2p institutional investors. First though, some of the facts: For a Madden v. Midland case overview, check out Lend Academy’s post “Madden 2015 Has Nothing to …
Loan Selection In P2P Lending: Does It Actually Work?
The major P2P lending platforms, such as Lending Club and Prosper, have been terrific at underwriting and setting a level playing field for marketplace lending – and several of them have recently launched or improved their passive vehicles; this is great news for investors seeking passive income with a minimal amount of hassle. A common question that I often get …
Gone in 60(/12) seconds – 3 types of loans algorithmic investors buy
A few weeks ago Simon Cunningham at Lending Memo wrote a great post on algorithmic investing in marketplace lending. There is a perception that institutional investors are buying the best loans using credit models. This is a good assumption. But it’s also worth asking: do institutional investors really behave differently from retail investors on the marketplace lending platforms?