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Post by Iain - Orca on Aug 14, 2017 18:07:20 GMT
Hey, Since publishing a first review of RateSetter last October our analytical capability at Orca has increased. You can check out a refresh of the review below: RateSetter ReviewHope this is helpful and any comments would be welcomed. I'm currently writing a review of RateSetter as a business as well which I'll post here later in the week. Thanks, Iain |
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Post by WestonKevTMP on Aug 16, 2017 21:45:46 GMT
Always good to read a detailed analysis of any platform, however I think this needs more work.
For example the analysis states the maximum loan size is £1,652,548.65. however we know from the recent "email bombshell" that the largest loans are far higher than this. Your analytical issue is that these loans are cut into multiple smaller loans, so if you're going to use the downloadable loanbook you need to look at different aggregator fields.
You also state "Loans are most likely to default in the middle of their terms and not in their first years", however you cannot tell the dynamic delinquency curves from the data provided. In addition, this is not true for retail consumer loans that are heavily loaded to default in the first half, not only because this is when the balance is largest but also when the customers intention, affordability and credit risk are found. I mean who defaults in the last two years of a five year loan, other than those who suffer "life events".
Kevin.
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Post by Iain - Orca on Aug 18, 2017 14:19:40 GMT
Hi Kevin, Appreciate your comments. It's great to have your input. Very good point regarding the max loan size. I've just checked and the largest wholesale loan reported in the loan book is £862k. I've put a request into RateSetter to understand how the larger loans are accounted for in the book. For example the Airpod Limited loan(s) of £12m. I've removed the specification of 'middle' when discussing the default profile. I'm trying to make sure that more inexperienced investors are aware that the actual default rates will increase over time. Our experience is that this is not that obvious for new investors. We've also produced a review of the RateSetter as business. It would be good to get your thoughts on this, particularly around platform fees which we're trying to approximate using revenue, average terms and loan book size. www.orcamoney.com/blog/ratesetter-uk_ cheers, Iain |
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Post by johnnyjohnjohnson on Aug 18, 2017 15:23:30 GMT
For example the analysis states the maximum loan size is £1,652,548.65. however we know from the recent " email bombshell" that the largest loans are far higher than this. Your analytical issue is that these loans are cut into multiple smaller loans, so if you're going to use the downloadable loanbook you need to look at different aggregator fields. Got a link to more info/news about this "email bombshell"? It's the first I'm hearing about it. Thanks
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toast
Member of DD Central
Posts: 158
Likes: 90
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Post by toast on Aug 18, 2017 17:21:19 GMT
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