Author Topic: "employment: N/A"  (Read 8682 times)

MollyClarkson

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Re: "employment: N/A"
« Reply #15 on: July 23, 2020, 12:08:35 AM »
Credit Variables Explained: Employment Tenure
http://www.orchard-app.com/blog/?p=365
Below is the performance based on employment tenure.  Based on these numbers, the stability of income is not as strong a predictor of performance as other variables we’ve reviewed, but there is some weakness in the lower end.  Specifically, we do not like the “n/a” category.  It isn’t entirely clear what this means, but from the performance below, it isn’t good and should likely be omitted from any filtering strategy.  Any further exclusion decisions would have to depend on the investor’s risk/return preferences and expectations.
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Correction to new URL format: http://www.orchardplatform.com/blog/credit-variables-explained-employment-tenure

I don't know what to make of this graph.  How is it possible that all the default rates are greater than 5% ... oh wait because this would include F & G notes I guess???


thanks for the link and data