Earlier this month, our team attended LendIt 2016, which is the biggest conference dedicated to peer-to-peer lending. The two day conference was packed with general sessions that analyzed important topics in the industry as well as deep dive workshops from industry experts. This year, MonJa sponsored the conference and our CEO, James Wu, and Chief Analytics Officer, Jesse Velez, were …
MonJa Monthly News Update- March 2016
Here are some of the top stories and trends of March 2016 for marketplace lending investors and industry watchers: Industry News: 03-04-16—NYHFR Survey: P2P Lending Increasingly Popular Among Alternative Asset Manager (FINalternatives) 03-07-16—CFPB Releases Consumer Bulletin on Marketplace Lending and Announces It Is Accepting Consumer Complaints (JSUPRA) 03-14-16—Unanswered Questions in Online Lending (FT Alphaville) 03-14-16—More Trouble in Bonds Backed by Peer-to-Peer …
MonJa Monthly News Update- February 2016
Here are some of the top stories and trends of February 2016 for marketplace lending investors and industry watchers: Industry News: 02-03-2016– FDIC Puts Up More Road Blocks for Marketplace Lenders (Pepper Hamilton LLP) Based on the FDIC’s latest insights on marketplace lending, Pepper Hamilton summarizes specific risks that banks need to examine when dealing with marketplace lenders. 02-05-2016– Misconceptions …
Moody’s “downgrades” Prosper-backed deal despite consistent performance
Earlier this month, Moody’s put the C notes of the Prosper/ Citi securitizations CHAI 2015-PM1 / 2015-PM2 / 2015-PM3 on a review for downgrade. The most material change in the forecast was an increase of expected cumulative lifetime net loss to 12%, from 8% to 8.5% of the 3 transactions. On the reason for this downgrade watch, a Moody’s spokesperson …
Lending Club Performance – The Good And The Bad (Feb 2016)
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 …
Marketplace Lending Outlooks
At MonJa, we strive to support industry watchers and investors further their understanding of the marketplace lending sector. Several financial enterprises release their investment outlooks on marketplace lending. Here are some general trends to be cognizant of: – FinTech Partners’ February 2018 Overview– The PDF reports provide a broad coverage of transactions specifically in the alternative lending space. –K&L Gates FinTech Regulatory and Litigation …
LendingClub did not “misfire” in their underwriting
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 …
MonJa Monthly News Update- January 2016
Here are some of the top stories and trends of January 2016 for marketplace lending investors and industry watchers: Industry News: 01-31-2016 How Alternative Lenders Are Challenging the Traditional Value of Consumer Credit Ratings (Finance Magnates)-FinTech companies continue to find new ways to measure credit worthiness of borrowers, such as abandoning FICO scores, assessing how applicants fill out their application, …
How significant is Lending Club’s recent rate hike?
A few days ago, Lending Club increased it’s borrower rate – second time in two months, after the December hike that coincided with the Fed rate hike. Investors should read Lending Club Advisor’s Commentary of 2016 for more background on the rate changes. In addition to the Fed rate hike, LC’s interest rate change may be caused by the prime rate rise and expected credit risk …
Five Common Mistakes P2P Loan Investors Make: Investing in only Low Interest Rate Loans (Part 5 of 5)
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 …