With Silicon Valley increasingly knocking on the door of Wall Street, developing innovative products using their technology and brand reach to take market share from banks, the business of packaging and selling loan products is, likewise, changing. Combining technology with a low-yield environment is “marketplace loan products” (MPLs). These investments in the debt of consumers are growing, with one of the primary performance drivers behind the decision being “diversification.” But are investors getting diversification during a market downturn? The study’s numbers suggest concern. Both retail and institutional investors are increasingly turning to peer-to-peer marketplace loans. An industry that mostly didn’t…
Investors Want “Diversification” In Loans, But Are They Getting It During Crisis?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.