With over 750 Loans and a RAR of 14% I have a good idea of the way I want to structure my lending going forward. I have created a risk spread table from my current data, I will now heavily stack my investment money into B and C grades, with a sprinkling of A and D. Then ultimately E and F grades will vanish from my chart either through repayment or more write-offs, then I should see my RAR steadily increase to at least 17-18%.
Permutation Risk Spread.JPG
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