One of the cardinal rules of investing, as the mutual fund manager Peter Lynch famously put it, is to invest in what you know. It's an adage that investors in non-bank consumer loans would have done well to remember.
Lured by the promise of outsized yields, hedge funds and banks have been securitising consumer loans made by online platforms and holding on to the riskiest tranches themselves – with little understanding of what they were buying, much less how to value it. There are no prizes for g
The week on Risk.net, September 8-14, 2018Receive this by email