Sat, Feb 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Blue Elephant goes in on non-bank lending

Friday, May 30, 2014

Bailey McCann, Opalesque New York:

The recent explosion in peer-to-peer lending these days can be hard to explain to the general public, but the story behind the tremendous growth is a simple one: peer-to-peer lending became popular as a means of making small interest-bearing loans to individuals who typically would not receive a loan at a regular bank as credit and lending terms tightened. The accelerated growth in these P2P lending platforms has drawn the attention of both banks and specialty finance industry heavyweights who view it as a new vertical for loan assets. Early on it looked like financial industry biggies were going to squeeze out smaller lenders, but as the space grows it appears there’s enough demand for everyone.

For consumers, the allure of P2P is pretty clear. If your credit is passable but not fantastic you have a shot at negotiating a loan with a real person and not a faceless bank or credit card company that only has profit in mind. For the lenders themselves, there’s a little more risk if, for example, the loans made start to go into default or underperform. However, if they perform as negotiated these small loans can be an economical and profitable investment tool. So far, it seems like the benefits outweigh the risks to both sides as P2P loans topped the multi-billions of dollars last year.

The oldest and most popular P2P lending platforms are LendingClub and Prosper Marketplace. They were originally entrepreneurial ventures, but have......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie