Comment Re:OK, Sell me. (Score 1) 261
Subprime lending -- a risk, return and correlation profile that are very distinct from money market + small enhancement lending. There are different tranches that you can choose from, ranging from AA to E or HR.
P2P lending may have differing relevance levels for people of different risk aversion classes, but modern portfolio theory (much of which is admittedly a crock) would argue that any asset w/some diversification value should make up some (perhaps small) part of people's portfolio.
I wouldn;t replace my USAA Performance First account w/ Prosper or Zopa lending, but I would put a chunk of my money in Prosper's sub sub prime borrowers.
P2P lending may have differing relevance levels for people of different risk aversion classes, but modern portfolio theory (much of which is admittedly a crock) would argue that any asset w/some diversification value should make up some (perhaps small) part of people's portfolio.
I wouldn;t replace my USAA Performance First account w/ Prosper or Zopa lending, but I would put a chunk of my money in Prosper's sub sub prime borrowers.
