stevio
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Post by stevio on Feb 23, 2018 20:31:07 GMT
With buybacks given by loan providers, evaluation turns to the provider of the loan rather the borrower. With that in mind I thought it worth a thread discussing how to evaluate a provider and which providers might be considered better than others This blog sums things up well but please feel free to detail how you evaluate them and your thoughts on the better providers. explorep2p.com/mintos-lender-ratings/
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jo
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Post by jo on Feb 24, 2018 17:30:04 GMT
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stevio
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Post by stevio on Feb 24, 2018 18:30:00 GMT
Good catch - yes, maybe the country performance is also a major factor
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Post by kilozulu on Feb 24, 2018 19:53:13 GMT
Not sure I see how this macro is relevant. The bank in question is serving mostly non-residents (read - CEE dirty money), thus has limited connection to Latvian market despite being located in Riga. On the general topic itself, I'm getting a feeling Mintos is often taking in very small weak lenders, which may be all fine until the relevant economies grow, but will be a bloodbath once the music stops.
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Post by explorep2p on Feb 27, 2018 16:56:08 GMT
Not sure I see how this macro is relevant. The bank in question is serving mostly non-residents (read - CEE dirty money), thus has limited connection to Latvian market despite being located in Riga. On the general topic itself, I'm getting a feeling Mintos is often taking in very small weak lenders, which may be all fine until the relevant economies grow, but will be a bloodbath once the music stops. Agree. Another potential big concern is FX risk for these smaller lenders. Many of them are borrowing in euros from Mintos lenders and lending in local currency, which gives rise to FX risks. Some of the larger lenders like Lendo have announced losses arising from their FX positions. Almost none of the lenders have explained whether they are hedging this risk and how they are doing it. It's not a simple process, particularly when there is some uncertainty over how quickly a borrower will repay a loan. It's a concern particularly for lenders based in countries with volatile (and generally depreciating) currencies such as Georgia, Moldova, Kenya etc....
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spyrogyra
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Post by spyrogyra on Mar 8, 2018 20:05:36 GMT
This risk is largely offset by the interest % which is much higher than in more developed countries with less volatile currencies. Often the % of interest is well into 1000s.
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