Author Topic: F is the new A  (Read 4383 times)

Emmanuel

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F is the new A
« 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/


nonattender

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Re: F is the new A
« Reply #1 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.
A little nonsense now and then is relished by the wisest men.

Fred

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Re: F is the new A
« Reply #2 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"?

Emmanuel

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Re: F is the new A
« Reply #3 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.

Booleans

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Re: F is the new A
« Reply #4 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?

Emmanuel

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Re: F is the new A
« Reply #5 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/

rawraw

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F is the new A
« Reply #6 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


Fred

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Re: F is the new A
« Reply #7 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.


Fred

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Re: F is the new A
« Reply #8 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).