### Author Topic: F is the new A  (Read 3764 times)

#### Emmanuel

• Full Member
• Posts: 157
##### 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

• Hero Member
• Posts: 717
• I am not here.
##### 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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• Posts: 1421
##### 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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• Posts: 157
##### 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

• Jr. Member
• Posts: 74
##### 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

• Full Member
• Posts: 157
##### 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?

#### rawraw

• Hero Member
• Posts: 2784
##### 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

• Hero Member
• Posts: 1421
##### 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

• Hero Member
• Posts: 1421
##### 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).