Alternate to Dream Achiever service

Congratulations on taking the first path towards achieving your financial dreams, you are choosing a perfect asset class for growing your wealth. Loans not only provide diversification from the stocks but they are a fixed income assets. Being a fixed income asset you can be way more confident  about the returns that you will get (if risk is managed properly), thus allowing you to invest for a fixed term and plan for future. Investing in Loans is a perfect path…

Automation Portfolios – Understanding what they represent and tracking their performance

Any investor looking to diversify their investment portfolio needs to look at investing in loans as an investment class. We have described in detail what you should do with your bigger portfolio in detail here (Why Loans should constitute 20% of your portfolio) .  Once you have decided to invest in loans and open an account on Lending Club there are two options: Do manual Trading on Lending Club or use automation tools available on Lending Club Use services like…

Step 3 – Modeling and Comparing Performance

  This is the last blog in this series. The 1st blog was written  here and the 2nd blog is here. In this blog we will talk about our modeling approach and compare the performance of the model to the average returns for various ratings on the Lending Club platform. For our model we use a combination of XGBoost and stacking techniques. While gradient boosting is well defined stacking is something that is proprietary to our modeling and provides us improved return discrimination…

Why build a Proprietary Default Model ?

Default Modeling has been the backbone for all credit decisions in the Banking industry for nearly five decades. The models can vary from as rudimentary as simple bucketing to sophisticated models that use derived risk factors, Markov chains and Machine Learning. At Croudify Ratings when we started looking at the risk ratings available at various platforms we soon realized that we need a risk model of our own. All platforms have proprietary models that use different criteria to rate loans. This…

Simplified Secondary Market Investing on Lending Club

Investors in P2P loans have long wished to get some guidance on pricing and risk when trading on secondary markets like folioFn (or private platforms for whole loans). Till date the only thing they could do was ad-hoc analysis basis on some factors but it made most uncomfortable. The questions like how is this the right price ? Will prepayment of this performing loan result in a loss if I pay a premium always haunted us. Enter Croudify !!! a trading platform provides…