Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 10, 2021 erstellt
Description:
With high coupon rates, unsecured personal loans promise attractive returns to investors. However, investors also bear the risk of complete loss in the event of default. In our experience, the most successful investors rely on a deep understanding of the product and the nuances in its underwriting. While platforms typically assign credit ratings to the loans they originate, savvy investors go a step further and do their own “deep-dive” analytics. In this article, we look into the key drivers of performance in this asset class, their relative contributions, and how they interplay with other important factors