News from around the world
National Real Estate Investor posted an article asking if marketplace lending lending is safer than the stock market. The authors cites the inherent volatility of the stock market while highlighting the “consistent returns with lower volatility.” The author explains that this is “due to the fact that many marketplace lending platforms have transparency in the risk for their lenders.”
SeekingAlpha offered an insightful look into the explosive growth behind marketplace lending. The author offers suggestions on how to approach marketplace lending in an effort to capitalize on a disruptive industry.
Peer-to-Peer Finance News discussed recent moves from Basset & Gold to offer investors a four-year marketplace lending bond. The author explains that the investment is designed to generate an annualized rate of return totaling 7.72%.
Bloomberg Markets looked at a Quebec hedge fund which is aiming to outperform passive investing by seeking more aggressive returns in the market. One way to accomplish this, according to the fund advisors, is with marketplace lending offering outsized returns.
Business Insider offered analytics examining the growth of alternative lending from 2014 to 2016. In those three short years the industry grew from $7.6 billion to $21.1 billion. Moreover, the cite that “Marketplace, or peer-to-peer (P2P), consumer lending still holds the most market share (61%) with origination volumes hitting $21.1 billion in 2016, up 17% from $18 billion in 2015.” This dominance is relative to balance sheet consumer lending, balance sheet business lending and P2P business lending.