What if borrowers stop paying their loans? Investors' rates of return on a peer-to-peer lending platform

被引：2

作者：

Chen, Pei-Fen ^{[1
]}

Lo, Shihmin ^{[2
]}

Tang, Hai-Yuan ^{[1
]}

机构：

[1] Natl Sun Yat Sen Univ, Inst China & Asia Pacific Studies, Kaohsiung, Taiwan

[2] Natl Chi Nan Univ, Dept Int Business Studies, Nantou, Taiwan

来源：

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2022年 / 77卷

关键词：

Credit grades; Investors' return; LendingClub; Loan rates; Peer-to-peer lending; CREDIT RISK;

D O I：

10.1016/j.iref.2021.10.011

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This research uses over 750,000 loan records from LendingClub issued from 2015 through 2018 to estimate the gross rates of return (ROR) for each loan by assuming the borrowers stop paying their loans once a default occurs. We find the probability of earning a positive return is 75.6% in terms of the total number of loans. By our calculation, the median of ROR ranges from 4.7% to 10.3% by lending to grade A through D borrowers, but ROR plummets to-6.6% to grade E-and below borrowers. Regression analysis shows that borrowers' credit rating, loan interest rate, loan status, and paid-month are the most critical factors to influence investors' ROR. Lastly, we offer a few investment implications and suggestions regarding participation in LendingClub.

引用

页码：359 / 377

页数：19

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