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Five Common Mistakes P2P Loan Investors Make: Investing in only Low Interest Rate Loans (Part 5 of 5)

In Investment Mistakes by Kitty LinLeave a Comment

In the fall of 2015, MonJa launched our blog series “5 Common Mistakes P2P Loan Investors Make.” We’ve delved into the following 4 potential shortcomings that can happen to investors- insufficient diversification, using simple filters, investing in a single platform, and investing in only high-interest loans. In our fifth and final piece, we explore what happens when investors invest only in low-interest …

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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 …

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Top 3 Marketplace Lending Insights in 2015

In Credit Risk Modeling, Industry News by Joanna LaiLeave a Comment

Over this past year, the MonJa team has provided our credit risk insights (and our intern’s cartoon drawings) on our company blog. Investors and partners often refer to these entries (common comment: “Your team really knows what it’s talking about…” Well geez, thanks. Only been in credit risk analytics for 20 years…). These comments have led to richer conversations on how investors …

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Five Common Mistakes P2P Loan Investors Make: Investing in Only High Interest Loans (Part 4 of 5)

In Investment Mistakes by Kitty LinLeave a Comment

Mistake #4: Investing in Only High Interest Loans (Part 4 of 5) In the beginning of fall, MonJa launched our “5 Common Mistakes P2P Loan Investors Make”  blog series. This week, we will talk about the fourth mistake investors make in peer-to-peer lending. These observations aim to help investors understand essential investment strategies.  There is a common rationale that riskier investments …

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Growth in Marketplace Lending Spawns Specialized Risk Services and Tools

In Marketplace Lending, Risk Management by Joanna LaiLeave a Comment

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 …

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What We Learned At Industry Conferences: Marketplace Lending Trends

In Company News, Industry News by Kitty LinLeave a Comment

Earlier this month, MonJa attended the IMN Investor’s Conference on Marketplace Lending, AltFi Global Summit, and American Banker’s Marketplace Lending and Investing in New York. For those who were not able to attend, we present an overview of common themes and challenges that were discussed among issuers, service providers, banks, and investors. We also give a quick recap of some of …

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How Can Loan Investors Prepare For Economic Shock?

In Credit Risk Modeling, Industry News by Joanna LaiLeave a Comment

As the end of the year approaches, many investors show concern about the potential slowdown in the economy. This caution is with good reason, as the slowdown in China and lull in US job growth point to a high likelihood of the US economy being affected. A recent Washington Post Article, “Economists are starting to warn about the risk of a new U.S. recession”, confirms this point, …

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4 Ways An Interest Rate Hike Will Impact Investors

In Credit Risk Modeling, Industry News by Jesse VelezLeave a Comment

This post was originally featured on October 5, 2015, in Orchard Platform’s Thought Leadership Series, where blog series where marketplace lending leaders share their industry insights. Below I share insights gained from my 10+ years of experience overseeing the loss forecasting of $9+ billion diverse small business lending products and managing $100+ billion in retirement assets. On September 17 the Federal Reserve …

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Five Common Mistakes P2P Loan Investors Make: Investing In A Single Platform (Part 3 of 5)

In Investment Mistakes by Kitty LinLeave a Comment

Mistake #3: Investing in A Single Platform (Part 3 of 5) A few weeks ago, we briefly examined the issue of diversification in the first post of our series (Mistake#1: Insufficient Diversification) and unsurprisingly, it creeps up again. We discovered that many investors believe that it is sufficient to diversify their portfolios by purchasing multiple notes on one lending platform. …

6 Factors to Consider When Investing on Lending Platforms

In Industry News by Kitty LinLeave a Comment

On October 30, 2015, many key players in the marketplace lending industry submitted their comments to the U.S. Department of Treasury’s RFI for the online marketplace lending industry. While sifting through many of the comments, I’ve selected a few excerpts that might be relevant to investors looking into the space. In this blog post, we’ll explore the benefits and risk …