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Assessment of Investor’s Portfolio of P2P Loans and Structured Certificates of P2P Loans

Author

Listed:
  • Jaromir Tichy

    (University of Finance and Administration, Faculty of Economic Studies)

  • Michal Bock

    (University of Finance and Administration, Faculty of Economic Studies)

Abstract

The aim of the paper is to evaluate the P2P loan portfolio of the company Zonky and the portfolio of structured certificates of P2P loans. P2P loans are a part of a new economic concept, based on people’s co-operation. In particular, the position of the investor who has financial surpluses and is modelling their investment portfolio, is investigated in such a way as to achieve the optimal profitable allocation of resources. Markowitz’s portfolio concept is applied, adjusted to be compatible with various ratings for P2P loans. The paper concludes that the concept of P2P loans has a perspective. It is conditioned by the low interest rates banks apply to citizens’ deposits and the reluctance of banks to lower interest rates on credit cards and consumer and overdraft loans.

Suggested Citation

  • Jaromir Tichy & Michal Bock, 2017. "Assessment of Investor’s Portfolio of P2P Loans and Structured Certificates of P2P Loans," ACTA VSFS, University of Finance and Administration, vol. 11(2), pages 121-143.
    • Handle: RePEc:prf:journl:v:11:y:2017:i:2:p:121-143
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    References listed on IDEAS

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    3. Sundararajan, Arun, 2016. "The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262034573, December.
    4. Borio, Claudio, 2014. "The financial cycle and macroeconomics: What have we learnt?," Journal of Banking & Finance, Elsevier, vol. 45(C), pages 182-198.
    5. Riza Emekter & Yanbin Tu & Benjamas Jirasakuldech & Min Lu, 2015. "Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending," Applied Economics, Taylor & Francis Journals, vol. 47(1), pages 54-70, January.
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    More about this item

    Keywords

    P2P loan; structured P2P loan certifcate; investment; Markowitz portfolio theory; proftability;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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