When we invest in Prosper and Lending Club loans, we are lending overwhelmingly to individuals usually for Debt Consolidation purposes. On the Bitcoin based loan platforms, my loans are mostly to businesses. It's actually a sizable peer to small business lending environment but it just so happens that these businesses are BTC based businesses and operating within the Bitcoin economy/ecosystem.
For example, one of my borrowers is Jose, who is bringing Bitcoin adoption through his exchange to both Click Here To Continue
Today I'm continuing my Subscriber Questions Answered segment and going international. Today's question is from Ali, one of my Canadian subscribers, eh? Ali has a great question. I LOVE answering questions from my subscribers so please feel free to comment here or email me any questions you have.
Today's Question from Ali: Why haven't any of these p2p lending sites considered using a centralized currency or point system, instead of working all these legal loopholes to get around the SEC? Lenders Click Here To Continue
Bitfinex, short for Bitcoin Financial Exchange, is a Hong Kong based trading exchange allowing for the purchase and sale of Bitcoin, Litecoin, Darkcoin and now Terahertz (THS) of cloud based mining power. What Bitfinex is used for most often by most traders is leveraged Bitcoin trading, meaning they can borrow USD or BTC and use it to go long (buy) or short (sell and hope it goes down to buy back cheaper) in Bitcoin.
If you are familiar with stock based margin trading then leveraged BTC trading Click Here To Continue
I'm a little behind on my monthly updates but I'm trying a couple new things including a new layout for this blog. This month, I'm also going to open up my monthly returns to everyone to take a look see at what I'm doing.
I have only one investing philosophy and that is to use my Credit techniques to lessen risk. I am not a high yield seeker as I seek to reduce risk first and then get a reward that exceeds my risk.
For those of you who have not seen before, I have 3 categories of loans. They Click Here To Continue
I was fortunate enough to go to the Lend Academy Investments presentation in Midtown Atlanta yesterday and learned about the 4 fund options that they have on offer. Jason and Bo of Lend Academy outlined all of their programs for us including their partnerships with Nickel Steamroller and Funding Circle (who you have seen here on this blog when they were known as Endurance Lending Network on a post about Peer to Small Business Loans). Let's take a look at the options available.
One option is Click Here To Continue
In my last post, I looked at loan duration for USD based peer to peer lenders. Since I lend in BTC as well, I thought I'd do the same exercise for my Bitcoin loans and other BTC lenders.
Duration, which is the sensitivity of a bond or loan portfolio to interest rates, and the related calculation of Average Term Remaining have different meanings for the USD based peer lending world versus those of us who lend in BTC. In the BTC world, we don't have a concern about Interest Rates since the rates Click Here To Continue
A friend and I were talking this week about how peer to peer loans in a portfolio is not unlike a bond mutual fund. In fact, it's exactly the same. A bond mutual fund is a fund that is many bonds together all with different rates and terms in them paying over time.
Loan duration is expressed in number of years as the sensitivity of price to changes in interest rates. It is a measurement of how long it would take for the price of the bond to be repaid by its internal cash flows.
Bond interest Click Here To Continue
In US Dollar based p2p lending, our primary concern is tracking Interest Earned. We track this through ROI or IRR or one of the other generally accepted methods for calculating Interest. We also track gains or losses on the sale of a loan if we sell our portion of a loan on the secondary market known as FolioFn and track loss of principal in the event of a default on one of our loans. This sounds like alot to track but it really isn't. Interest is relatively easy to track, most lenders are not active Click Here To Continue
I got another great question this week from one of my subscribers. Thank you to all of you who subscribe and get my monthly newsletter. If you want to subscribe, you can do so right here. No Spam here and once a month emails.
The question for today from my friend and subscriber Rob is how does your Scorecard work?
You may or may not have seen that I have my own Credit scorecard that I use to score and select loans for my own investment. As someone who does Credit analysis Click Here To Continue