Author Topic: Donít Just Auto Invest - Proving Systematic Bias at LendingClub  (Read 3869 times)


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Re: Donít Just Auto Invest - Proving Systematic Bias at LendingClub
« Reply #15 on: July 31, 2018, 07:19:16 PM »
I'd like to point out to anybody else reading this, that by sharing information like this Fred93 may effectively be reducing his own future returns, since the more people that know about the value of this data the more people will exploit it, and the more competition there will be for the best loans. Fred93, I salute you for your selfless sharing of your knowledge!

Well, that is one way of looking at it. I tend to look at the platform as a whole. The reality is if the median investor isn't doing well, the marketplace lending space will suffer. If the only winners are those who are doing advanced data analytics and "cherry picking" the best loans, and the rest are getting creamed, eventually that will lead to capital outflow. In the long run, the returns have to be attractive for the broad majority of investors, not just those with the special sauce. If they are not, this niche asset class will cease to be viable.

Thank you sir. You just neatly summed up my own reasons for publishing this article