I would love to hear from someone who has experience with the peer-to-peer lending scene. The risk seems really high in my opinion.
Chronical your adventure. Like I said I'm curious...
@Burned2manybridgesB4 wrote:
@Open123 wrote:Hedge Funds.
LOL. Kinda like betting black zeros at the roulette table?
Here's general info, for those that are wondering what a hedge fund basically is.
@awal wrote:
I would love to hear from someone who has experience with the peer-to-peer lending scene. The risk seems really high in my opinion.
If historical trends are to be believed, I'll continue making on the order of 12% after defaults. Not certain that'll hold true as I expect the economy to be skittish this year, but we'll see. Knock on wood, but the worst thing is the amount of time it takes for me to get invested into it, but admittedly I'm loan sharking rather than picking up the A-C tranches where there's loans a plenty. Lending Club has just launched their prime service but it only looks at tranches (LC breaks up into A-G and subcategories for each grade) and nothing deeper: I don't trust it enough to do better than the statistical average, and likely it will do worse.
Honestly a lot of it is just paying enough attention to avoid stupid loans in my estimation: if someone is asking for a 30k credit card consolidation loan, and they only have 6K of credit card debt, or business loans which have absolutely no associated busiess information / data with them.... durr. Also if one knows something about FICO and how it's calculated (in particular, how much ugly utilization hurts) you can find some real gems in any tranch if you know their scores would be 50-60 points higher than what's reported currently as soon as they get their loan especially if they have pristine payment history through the rough patches not too long ago.
I'm not putting any money I can't afford to lose into P2P lending, but I suspect it's less risky than my stock market investments currently and far less than the option trading I'm now dabbling with. It's an amusing aside but it takes too long to get invested in it to create a diverse portfolio of notes which is admittedly recommended: I've already changed my default investment up to $50 just to get it out there quicker.
@Burned2manybridgesB4 wrote:
@Open123 wrote:Hedge Funds.
LOL. Kinda like betting black zeros at the roulette table?
The table is always rigged in favor of those who can predict trends with even a modicum of accuracy.
@Open123 wrote:
@Burned2manybridgesB4 wrote:
@Open123 wrote:Hedge Funds.
LOL. Kinda like betting black zeros at the roulette table?
The table is always rigged in favor of those who can predict trends with even a modicum of accuracy.
Out of curiosity what do you see as the current state and future of hedge funds? Saw an Economist article last week suggesting they were getting beaten down on their price points, and certainly the last few years bull run on the stock market has been something of a mess, but perhaps now coming back into fashion?