We plan to orchestrate a survey amongst a few experts and major players in the peer lending space on the theme 'where will peer lending be 10 years from now'
Some topics will be 'retail vs institutional', major changes to come, impact of a stock market crash.
Does anyone has some question in mind they'd like to submit?
Will LC continue to release loans at only 4 times a day?
How about some sort of universal market place for secondary trading of notes from different platforms?
I'd like to hear some thoughts on how they expect retail investors to get access to this asset class in the future. Will folks like those on this forum simply be in the minority of trying to squeeze out better returns than funds full of notes? Somewhat similar to buying your own real estate vs buying a REIT fund.
Looking forward to hearing more Emmanuel
Thanks for the feedback.
The whole 'retail vs institutional' topic is indeed a pretty important one!
I meant to +1 Fred93's reply. But I must've clicked the wrong box on my phone. The retail vs big guy stuff gets old after a while IMO.
I'm profitable
. Three paying clients, and I keep my expenses super low.
I'd like to see a question about the desirability or importance of third party ratings on credit quality. A uniform approach, from Moody's or S&P or that ilk.
The P2P institutional fixed income funds, I work with, have AUM much higher. Also, they are not targeting double-digit returns, mostly mid to high-singles.
Orchard is very active with order management for institutional funds. But Orchard's end game is to create a secondary marketplace like FOLIOfn for institutional investors. They recently raised $12M of VC money. So, I don't expect them to be cash flow positive. There seems to be lot of activity in creating secondary marketplace for institutions as there is none right now. I am aware of at least 3 startups trying to target this segment.
The problem with independent ratings is the conflict of interest they create. How are these independent raters will be compensated? As soon as the payment is being received from loan originators or buy/sell side orgs, it creates the conflict of interest. It is the same issue with stock analysts and investment banking. The intentions are noble but execution is fraught with conflicts and issues.
"There are no unbiased ratings."
Fine. Triangulate the truth with multiple independent viewpoints. I think my point stands that reputational risk of platforms isn't enough.