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Post by mopcku on Jun 13, 2016 17:41:46 GMT
Hi Guys
I would like to invest using the different loan marketplaces. However since I want to optimize my investments for me is important to have as much as possible quantitative information about the loans. What I mean are things like PD, LGD, EL etc.
I tried with Bondora but would like to know what your experience with the other loan marketplaces is. Can you share your opinion which platform is providing the most statistical information about the offered loans?
Thank you very much
Mopcku
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registerme
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Post by registerme on Jun 14, 2016 7:36:25 GMT
Hi mopcku , I've only just got up, and as yet my body (that which is a temple) hasn't had any caffeine yet, but I don't recognise the acronyms PD, LDG and EL. Could you expand on them? |
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Post by meledor on Jun 14, 2016 7:50:38 GMT
Hi mopcku , I've only just got up, and as yet my body (that which is a temple) hasn't had any caffeine yet, but I don't recognise the acronyms PD, LDG and EL. Could you expand on them?
No coffee here yet, but
probability of default loss given default expected loss (EL=PD x LGD)
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registerme
Member of DD Central
Posts: 6,212
Likes: 6,021
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Post by registerme on Jun 14, 2016 7:52:02 GMT
Hi mopcku , I've only just got up, and as yet my body (that which is a temple) hasn't had any caffeine yet, but I don't recognise the acronyms PD, LDG and EL. Could you expand on them?
No coffee here yet, but
probability of default loss given default expected loss
Thanks meledor , I think I need to put the kettle on.....
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arbster
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Post by arbster on Jun 14, 2016 8:05:22 GMT
The best platform for quantitative analysis is FC, IMO, as they publish their entire historical loan book. That said, pretty much all the sites provide a list of all current and settled loans, plus default information where relevant, although it may be that EL figures would be skewed by platforms' interventions using their own funds.
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Greenwood2
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Post by Greenwood2 on Jun 14, 2016 11:35:20 GMT
I think the P2PFA members all publish default information in the same format, to allow comparison.
ThinCats also show the full loan book (anonymised) as well as historic default statistics.
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Post by gregorycarter on Jun 16, 2016 8:17:11 GMT
Hi Mopcku,
At Growth Street we calculate an EL for each of our UK limited company borrowers based on our own internal ratings model (driven largely by the borrower's key financial ratios / levels) and Moody's RiskCalc.
We update this at least quarterly based on financial information we receive at least monthly from our borrowers via their accounting software. We can reprice as necessary to ensure we are collecting the right level of loan loss provisions for lenders.
Having been focused on our risk management and borrower proposition for the past 18 months we're not opening up the lender side of the marketplace to limited companies. If you are lending as a limited company you are welcome to register for our private beta. We're currently offering 6.5% AER on our 30 day marketplace, which is a rate after all fees and protection from our provision fund.
We're not yet open to individual investors, but expect to be regulated for this in August.
I'm keen to learn more about what investors want to see in terms of borrower statistics, so I'd be happy to talk more about what we can show and how you'd like to see it presented.
For example, would you like to see a distribution of ELs through the portfolio? Or see this translated into equivalent bond credit ratings?
Thanks
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