bigfoot12
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Post by bigfoot12 on Dec 22, 2016 11:28:38 GMT
ftalphaville - online-lender-files-for-bankruptcy-protection-just-in-time-for-christmas"First payment default rates hit 12%" The article contains a possible worry for anyone who is invested in Ranger DL. EDIT: Thread title originally called this company P2P, but they don't seem to be in sense understood on this forum. Also Ranger have since made an announcement (see samford71, below) saying that they don't anticipate a reduction in NAV.
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Post by bracknellboy on Dec 22, 2016 11:49:22 GMT
And festive cheer to you too ...  |
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mikeh
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Post by mikeh on Dec 22, 2016 11:57:47 GMT
Bloomberg has RNS saying *RANGER DIRECT:ARGON BANKRUPTCY PROCEEDINGS WON'T IMPACT NAV/DIV (and just to be clear I don't own any RDL). While clearly something has gone badly wrong with Argon given their default rates, it does just add to my sense that consumer loan default rates have been rising throughout 2016 in the US. LC, Prosper and various securitizations all seem to be suffering from higher than expected defaults. This despite only a 25bp rate hike by the Fed in Dec 2015 (and another one a week ago). Adds to my feeling we are in the later part of the cycle. I do wonder whether this is being replicated in the UK at all (say on Zopa or RS). Official data implies that consumer defaults are rising but from very low levels. Question is whether UK P2P lenders have a broad representative sample or whether (like the US) that P2P borrowers are defaulting faster than expected.
My feeling is that the steep and sudden increase in defaults at LC is due to fraud on a large scale. Hope it doesn't happen here.
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Mike
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Post by Mike on Dec 22, 2016 20:14:39 GMT
Bloomberg has RNS saying *RANGER DIRECT:ARGON BANKRUPTCY PROCEEDINGS WON'T IMPACT NAV/DIV I read this *DANGER DIRECT:ARGON BANKRUPTCY PROCEEDINGS WON'T IMPACT NAV/DIV
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am
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Post by am on Dec 23, 2016 0:22:03 GMT
I googled this. At first sight it doesn't seem to be a P2P company (just an online lender, using debt funding). Anyone have evidence to the contrary?
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bigfoot12
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Post by bigfoot12 on Dec 23, 2016 8:11:09 GMT
I googled this. At first sight it doesn't seem to be a P2P company (just an online lender, using debt funding). Anyone have evidence to the contrary? I think that you might be correct. I have changed the thread title. The P2P link comes from Ranger's $28M investment. Nonetheless they are probably chasing similar borrowers to many of the P2P lenders and the change in their performance over the last 6 months is worrying.
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