pom
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Post by pom on Mar 14, 2019 18:36:24 GMT
Whilst I commend the attempt to make a measurable comparison, as bg says they're really not that comparable and it's too easy to then make them support whatever viewpoint you're looking for... evaluating P2P platforms is as much an art as a science given we don't have access to anywhere near enough data to make statistically valid conclusions. At the end of the day you just have to try things out (cautiously) |
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sl75
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Post by sl75 on Mar 17, 2019 18:23:00 GMT
I'd also note that % defaults is primarily a comparison of the maturity of a portfolio...
All else being equal, a rapidly growing platform with a high percentage of new loans will have a much lower % defaults than a mature platform with a mix of loans of all different ages, which will itself have a much lower % defaults than a platform which is in decline so that almost all loans have either been fully repaid or are in default.
In particular a brand new platform that has just launched its first batch of loans would have 0% defaults, so for those using such a simplistic measure would appear "less risky" than any of the mature platforms which have a non-zero level of defaults, however well managed they may be.
For a fair comparison, it could be instructive to (for example) consider only loans which were originated in the same month/year, or to exclude all loans written in the last year (which have had much less opportunity to "turn bad" than ones written more than a year ago).
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