![]() Prosper reported Q2 2018 results that showed growth in originations of 12% YoY to $867 Mn. Prosper’s Q2 Results – Originations Up, Net Loss Down Outstanding personal loan balances now stand at nearly $125 Bn. Marcus recently launched in the UK with personal loans and savings accounts.Īs seen in the chart below, growth in personal loan balances has significantly outpaced that other asset classes, averaging near 20% YoY. Goldman Sach’s Marcus has been one of the new competitors having originated nearly $4 Bn in personal loans since their launch – approximately a $2 Bn annual run-rate – smaller than Lending Club and others, and likely tempering their ambitions due to late-cycle credit conditions. Mailings soliciting personal loan borrowers exceeded credit card mailings in six of the last seven months, even though the credit card industry is almost 6 times larger. ![]() We also look at the rising competition in unsecured lending, Prosper’s Q2 2018 results and provide a glimpse into our upcoming 3Q2018 Lending Earnings Insight report that we will be releasing next week.Ĭompetition – and Opportunity – in Unsecured LendingĬompetition for personal loans is heating up. This week, we dive into PeerIQ’s methodology to derive the appropriate discount rate for each loan. In this week’s newsletter we continue our series on valuation. Bungalow, a residential real estate rental platform, has raised $64 Mn in Series A funding led by Khosla Ventures to expand operations. In FinTech financing news, Upgrade, Renaud Laplanche’s fintech personal loan platform has raised $62 Mn in a Series C round that was led by CreditEase, valuing Upgrade at $500 Mn. The spread between the 10-yr and 2-yr treasury yields is now down to just 21 bps, and an inverted yield curve has usually been a reliable predictor of recession Rising front-end rates have flattened the yield curve. Strong economic growth and decades-low unemployment have kept the Fed on track to raise rates at least once more in 2018. Meanwhile, in the minutes of the July Fed meeting released this week, the Fed affirmed its stance to gradually raise interest rates. ![]() The current bull market at 3,453 days since the low in March 2009 is now tied with the 1990-2000 bull market, and is on pace to exceed that target. US stocks look set to enter the longest-ever bull market. ![]()
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