Analyzing credit risk among Chinese P2P-lending businesses by integrating text-related soft information

2020 ◽  
Vol 40 ◽  
pp. 100947 ◽  
Author(s):  
Kun Liang ◽  
Jun He
Keyword(s):  
Credit Risk ◽  
Soft Information ◽  
P2p Lending

Research on Credit Risk of P2P Lending Based on CatBoost Algorithm

Finance ◽  
2019 ◽  
Vol 09 (03) ◽  
pp. 137-141
Author(s):  
鸿祥 李
Keyword(s):  
Credit Risk ◽  
P2p Lending

Soft Information in Loan Agreements

2017 ◽  
Vol 33 (1) ◽  
pp. 40-71 ◽  
Author(s):  
Zahn Bozanic ◽  
Lin Cheng ◽  
Tzachi Zach
Keyword(s):  
Credit Risk ◽  
Soft Information ◽  
Risk Assessments ◽  
Uncertainty Measure ◽  
Performance Pricing ◽  
And Performance ◽  
Loan Spreads ◽  
Bid Ask Spreads ◽  
Private Loan ◽  
Secondary Loan Market

In this study, we seek to understand whether soft information conveyed by contracting language found in private loan agreements is informative regarding borrower risk. We proxy for credit-risk-relevant soft information using Loughran and McDonald’s uncertainty measure. We first examine initial contract terms and find that, incremental to traditional summary measures of credit risk, increased contractual uncertainty is associated with higher initial loan spreads and a greater likelihood of using dynamic and performance-pricing covenants. We then turn to examine realized credit risk over the life of the loan and find that increased uncertainty is associated with a higher likelihood of future loan downgrades and loan amendments. We corroborate our results on the risk relevance of soft information by showing that the bid-ask spreads of loans trading on the secondary loan market are increasing in uncertainty. Overall, the evidence we provide is consistent with embedded linguistic cues in loan agreements publicly revealing the credit risk assessments of privately informed lenders.

Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending

2014 ◽  
Vol 47 (1) ◽  
pp. 54-70 ◽  
Author(s):  
Riza Emekter ◽  
Yanbin Tu ◽  
Benjamas Jirasakuldech ◽  
Min Lu
Keyword(s):  
Credit Risk ◽  
Peer To Peer ◽  
P2p Lending

scholarly journals Peer-to-Peer Lending – A (Financial Stability) Risk Perspective

2018 ◽  
Vol 69 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Benjamin Käfer
Keyword(s):  
Default Risk ◽  
Financial Stability ◽  
Liquidity Risk ◽  
Peer To Peer ◽  
Soft Information ◽  
Final Conclusion ◽  
Survey Article ◽  
P2p Lending ◽  
Over Time

AbstractThe aim of this survey article is to discuss P2P lending, a subcategory of crowdfunding, from a (financial stability) risk perspective. The discussion focuses on a number of dimensions such as the role of soft information, herding, platform default risk, liquidity risk, and the institutionalization of P2P markets. Overall, we conclude that P2P lending is more risky than traditional banking. However, it is important to recognize that a constant conclusion would be misleading. P2P platforms have evolved and changed their appearance markedly over time, which implies that although our final conclusion of increased riskiness through P2P markets remains valid over time, it is based on different arguments at different points in time.

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