P2P

Previously I have looked at visualising the Property Partner portfolio using tableau, and explored their resale date from July 2017. In this post I will be exploring the August Open House resale data focussing on property premiums over both initial and latest valuation. The code for this post is available here. Property Partner advertises returns by combining both projected capital and rental returns. Properties are held for 5 years at which point any capital gain can be realised.

As peer to peer lending matures platforms have begun to have increasingly divergent stances on sharing their data, making it increasingly important that their is external pressure on them to improve their data sharing. This blog series will focus on platforms sharing their data, exploring what their data is saying and suggesting possible changes to their releases that would make it easier for investors to gain insights on their own.

A series of Tableau dashboards visualising the Property Partner portfolio

FC dashboard is a simple tool for exploratory data analysis on the funding circle loanbook. The source code can be found here. This is an independant project and is in no way associated with funding circle. Since the original development of this dashboard Funding Circle has stopped publishing it’s full loanbook, this means that some functionality will no longer work as originally intended and that data will no longer be updated.

Visualisation and analysis of the Funding Circle loanbook.

As a quick update to last weeks post this week we will be using the estimates of bad debt from last week to assess the true risk/rewards of loans at various lengths from the funding circle (FC) loan book. I realised recently that when picking loans my default criteria tends towards picking loans with the lowest percieved risk (i.e lowest risk band) with the highest interest rates possible. This strategy has some interesting consequences in that it preferentially selects long term loans that tend to have higher rates.

We are again looking at the peer to peer (P2P) loan book for funding circle (FC), with the focus being the variation in return based on portfolio composition and diversification. FC states that the average return on investment is 6.6%, with 93% of investors that invested in more than 100 companies, with a maximum exposure of 1% earning 5% or more. The original purpose of this blog was to look at various portfolio’s and estimate the risk that they carry for the investor.

This is the first in a series of blog posts looking at P2P lenders, which will be aimed at surfacing more details about the structures of their loan books. I hope to expand this series by looking at optimal strategies, predictive modelling, and interactive data science. Since 2005, with the launch of Zopa P2P companies have provided a middle path between cash holdings, and investing in stocks and shares. Funding circle, which was launched in 2010, has currently facilitated over £1 Billion in loans to British businesses.