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Rescooped by Andy Arigo from P2P and Social Lending: Global Trends!

The risks of fixed-income investments and P2P lending

The risks of fixed-income investments and P2P lending | things I find interesting |
It has been said that the only sure thing is change.

Via P2P Consultants
Andy Arigo's insight:

Lending Club

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



"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 ?
Scooped by Andy Arigo!

Orlando foreclosure toll is $720 million, report says - Orlando Sentinel

Orlando foreclosure toll is $720 million, report says - Orlando Sentinel | things I find interesting |
Orlando foreclosure toll is $720 million, report says Orlando Sentinel Orlando has lost an estimated $720 million in wealth, particularly among low-income families, as a result of the wave of foreclosures, according to a report released today by a...
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Rescooped by Andy Arigo from Technology in Business Today!

European Internet Statistics

European Internet Statistics | things I find interesting |
Interesting statistic regarding European internet usage,
statistics on broadband penetration, social media usage & Online search.
With 518 million Europeans Connected or 12% of the worlds Population

Via TechinBiz
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