Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: Emmanuel on June 16, 2016, 06:06:24 PM

Title: F is the new A
Post by: Emmanuel on June 16, 2016, 06:06:24 PM
Or why a conservative portfolio is not necessarily made up of only conservative loan grades...

http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/

Title: Re: F is the new A
Post by: nonattender on June 26, 2016, 09:35:00 AM
This reminds me of that one time, at math camp, I counted to 5 without thinking to myself "One, plus one, plus one, plus one, plus one..."

Soon thereafter I realized that I could set N to anything I wanted and then - working backwards - I realized that there were uncountably infinite ways to reach N.  Later, that same summer, the concept of number revealed itself to me.  I would stay up, late at night, dreaming.
Title: Re: F is the new A
Post by: Fred on June 26, 2016, 07:53:03 PM
Or why a conservative portfolio is not necessarily made up of only conservative loan grades...

http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/

We have the *population* (not just sample) of payment data; why use Monte Carlo?  Why "simulate"?
Title: Re: F is the new A
Post by: Emmanuel on June 26, 2016, 09:26:31 PM
Or why a conservative portfolio is not necessarily made up of only conservative loan grades...

http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/

We have the *population* (not just sample) of payment data; why use Monte Carlo?  Why "simulate"?

Because the calculations would only apply for someone investing in every single loan.
Title: Re: F is the new A
Post by: Booleans on June 27, 2016, 09:00:37 AM
We have the *population* (not just sample) of payment data; why use Monte Carlo?  Why "simulate"?

When you say payment data, are you referring to data where you can see the value and date of payments made for each loan? If so, where do I find that?
Title: Re: F is the new A
Post by: Emmanuel on June 27, 2016, 12:14:14 PM
When you say payment data, are you referring to data where you can see the value and date of payments made for each loan? If so, where do I find that?

It's in http://additionalstatistics.lendingclub.com/
Title: F is the new A
Post by: rawraw on June 27, 2016, 12:44:14 PM
Is this a through the cycle measure of risk?

Sent from my SAMSUNG-SM-G935A using Tapatalk

Title: Re: F is the new A
Post by: Fred on June 27, 2016, 11:32:49 PM
Or why a conservative portfolio is not necessarily made up of only conservative loan grades...

http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/

We have the *population* (not just sample) of payment data; why use Monte Carlo?  Why "simulate"?

Because the calculations would only apply for someone investing in every single loan.

Wot?

The statistics from population are much more superior than those of samples.

Title: Re: F is the new A
Post by: Fred on June 27, 2016, 11:39:02 PM
Because the calculations would only apply for someone investing in every single loan.

Not true.  You can apply the results from population to any samples of the population (e.g., one loan).