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Rescooped by Alex Zhu from P2P and Social Lending: Global Trends
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The risks of fixed-income investments and P2P lending

The risks of fixed-income investments and P2P lending | P2P Education | Scoop.it
It has been said that the only sure thing is change.

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P2P Consultants's curator insight, May 18, 2013 9:14 PM

Summary:

 

"People used to have the option of saving for retirement and then living comfortably off of the income produced by their portfolios. Now, it is difficult for people to survive, as in years gone by, from the income produced. This is a huge problem for the baby boomers going into retirement.

 

The United States has been in a low- interest rate environment for the past few years in order to stimulate economic growth and employment, which has led investors to look for income in increasingly riskier investments.

More money has shifted into riskier forms of fixed income, such as high yield or junk bonds and preferred stocks

 

 Each of these investments might provide a higher stream of income than their more traditional counterparts; however, each of these investments also has more risk than government bonds, investment-grade bonds or certificates of deposit."

 

The main risk to each of these investments comes when interest rates rise.

More than not interest rates will increase in 2014 putting junk bonds and preferred stock at risk. P2p lending is an excellent alternative to preferred stock and junk bond investing, have no interest rate risk issue, offering much higher return on an adjusted risk basis. Again, the author of this article is part of the 75% financial advisers who does not know about p2p lending. Baby boomers putting an allocation of their retirement portfolio into p2p lending as long as it is professional managed makes good sense.

 

 

Yvan De Munck's comment, May 19, 2013 10:54 AM
With the average age of advisers hitting late 50's, it's understandable that many of them have little affinity with new i.e. social media, and with other developments that continue to disrupt and undermine their business in a very fundamental way. P2P Lending is radically changing the landscape indeed, and while my personal take is that we're going to see much lower rates for a very long time, it's obvious that "smart" money has started to understand that this newly investable asset class has unique characteristics, and that it will pay to be early getting in on this ride. High yield, high credit quality, short duration + low volatility and low correlation. What's not to like ?
Andy Arigo's curator insight, May 21, 2013 4:02 PM

Lending Club

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Catholic Social Thought and the Openness Revolution - P2P Foundation

Catholic Social Thought and the Openness Revolution - P2P Foundation | P2P Education | Scoop.it

* Presentation: Catholic Social Doctrine and the Openness Revolution: Natural Travel Companions? by Marco Fioretti

 


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Rescooped by Alex Zhu from P2P and Social Lending: Global Trends
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Time to Bail on Bonds?: Into P2P Lending

Time to Bail on Bonds?: Into P2P Lending | P2P Education | Scoop.it
In today's "The Call," Bloomberg Contributing Editor, Bob Rice discusses risk in bonds and alternatives for investors. He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

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P2P Consultants's curator insight, May 19, 2013 7:22 PM

Bloomberg suggest move out to Bonds into p2p lending. Get nice returns and is hot topic for hedge funds

Rescooped by Alex Zhu from The 21st Century
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Education World: Project-Based Learning: Why and How?

Education World: Project-Based Learning: Why and How? | P2P Education | Scoop.it
Read about the benefits of project-based learning and get tips on implementing this key instructional strategy.

Via Dr. Susan Bainbridge
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