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
In one of my previous posts on Bitcoin lending, I talked about the biggest site for BTC based peer to peer lending, BTCJAM and how it works. Ryan from Peer and Social Lending (another good p2p lending blogger) also recently posted about lending on BTCJAM with a nominal amount of cash. It is in fact the biggest, but it is not the best platform for BTC based peer lending. The best is BitLendingClub.
If you have ever noticed the big edge that insiders have in all financial areas (like the stock Click Here To Continue
August has come and gone and I had another pretty good month. Let's see how we did based on my big 4 categories of Private Loans, Bitcoin Loans, Lending Club Loans and Prosper Loans:
Lending Club Loans
Bitcoin Click Here To Continue
I got a great question and request from fellow peer lending blogger Simon Cunningham of Lending Memo about sharing screenshots of my LC acct. His blog is really good and you should check it out. His approach is very different to mine but as we well know, there are lots of different ways to get to the finish line. My methodologies are different than many in this space thanks to my big experience in Credit and my little experience with technology as compared to many in this industry on both accounts. Click Here To Continue
The Fitch ratings agency, who along with Standard & Poor's are the 2 largest US based ratings agencies just released their first report on Peer to Peer Lending. While the report is based on the lending platforms themselves, you can't have a report on the platforms without examining the industry in which they operate. This report does both. This report is so important that I think every peer lending investor should have it. A link to the report is right here:
Overall, Click Here To Continue
Another month has come and gone and we have had another successful month here at P2PLendingexpert.com
July 31,2014 Interest Rec'd Net Interest Principal Rec'd Principal Remaining ROI
Private Loans 187.87 187.87 937.74 2934.82 6.40%
Bitcoin Loans 109.06 109.06 1603.07 Click Here To Continue
The US Gov't has decided that Bitcoin (BTC) is to be taxed like property so upon its sale we recognize the capital gains and losses. This means BTC gets the exact same tax treatment as stocks and real estate. There are some serious implications for BTC investors/lenders as a result of this ruling, but you may be surprised to hear that some of these implications are to our benefit.
DISCLAIMER: While I do finance for a living, I am NOT an accountant. This is MY interpretation only and should Click Here To Continue