Sun, Mar 29, 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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner