zlb
Member of DD Central
Posts: 1,422
Likes: 333
|
Post by zlb on Dec 11, 2018 13:59:12 GMT
Is this only an issue of market saturation of too many lenders and not enough good borrowers? FC is inviting ex-lenders to invest more, yet the borrowers don't seem up to expectations: p2pindependentforum.com/thread/13904/fc-finally-feeling-lending-squeeze?page=1If the borrower quality was high, and/or there were only quality borrowers/projects, then theoretically, there would be lenders queuing to invest. If a platform gains institutional investment does the borrower/project quality deteriorate in order to fill the funds? Often an institutional investor makes the company more attractive to private/retail investors > who then invest more > and then find out that the borrowers aren't as good as they used to be ... is that a cycle? |
|
mjc
Member of DD Central
Posts: 342
Likes: 425
|
Post by mjc on Dec 14, 2018 12:18:02 GMT
Is this only an issue of market saturation of too many lenders and not enough good borrowers? FC is inviting ex-lenders to invest more, yet the borrowers don't seem up to expectations: p2pindependentforum.com/thread/13904/fc-finally-feeling-lending-squeeze?page=1If the borrower quality was high, and/or there were only quality borrowers/projects, then theoretically, there would be lenders queuing to invest. If a platform gains institutional investment does the borrower/project quality deteriorate in order to fill the funds? Often an institutional investor makes the company more attractive to private/retail investors > who then invest more > and then find out that the borrowers aren't as good as they used to be ... is that a cycle? Is there information on which platforms are attractive to Institurional investors, and is there a correlation between that and the risk/return of those platforms?
|
|
zlb
Member of DD Central
Posts: 1,422
Likes: 333
|
Post by zlb on Dec 14, 2018 17:34:18 GMT
Is this only an issue of market saturation of too many lenders and not enough good borrowers? FC is inviting ex-lenders to invest more, yet the borrowers don't seem up to expectations: p2pindependentforum.com/thread/13904/fc-finally-feeling-lending-squeeze?page=1If the borrower quality was high, and/or there were only quality borrowers/projects, then theoretically, there would be lenders queuing to invest. If a platform gains institutional investment does the borrower/project quality deteriorate in order to fill the funds? Often an institutional investor makes the company more attractive to private/retail investors > who then invest more > and then find out that the borrowers aren't as good as they used to be ... is that a cycle? Is there information on which platforms are attractive to Institurional investors, and is there a correlation between that and the risk/return of those platforms? I don't know, but someone else might. I'm just curious about this start up period on a platform and what the signs of over-stretch might be. I'm always surprised by how much borrowing there is. Institutional investors might be well versed in this, and this may imply that they're happy with any reasonable platform??
|
|
