Peer-to-Peer Lending
Intro In times of near-zero interest rates and stock valuations reaching bubble levels it's very hard to find worthwhile investment opportunities for retail investors, particularly in the fixed income space. While searching for alternatives to traditional fixed income investments I stumbled across Lending Loop (LL) , a peer-to-peer lending website that promises high single-digit returns. Their business proposition is to connect borrowers and savers, allowing retail investors to lend directly to small business. The idea certainly has its merits. It essentially eliminates the middleman (the banks) from the equation, giving retail investors access to high return assets. On the downside, it exposes investors to a great deal of credit risk, which is assumed by the bank when they're involved. Being aware of the potential risks involved I searched for online reviews of the platform that would give me an indication of the risk and return profile of the investment. Unfortu...