Quote Originally Posted by joker View Post



….I suspect that they wish to close the gap between the retail and wholesale RARs caused by retail investors selectively investing in the better loans and leaving the riskier loans to be filled by the wholesale investors. How else can one explain the variance in RARs?
Let's analyze your statement. Would not the opposite be the case?

Wholesale investors, in my view, put large chunks of money into each loan so would more likely invest in the less risky loans like A grades and low B's, thereby reducing their overall RAR.

Likewise, retail investors buying just one note of $25 into many higher risk loans are more likely get a higher return over time?

Personally speaking, being in for 39 months, I have through experience ditched the low interest loan Grades A's and low B's and also the Extreme risk loan Grades E and F, where I have encountered a 15% Charge-off rate, and now intensely concentrate lending into the "mid-Range Risk grades" providing my latest RAR of 13.89%.