As Money Pours Into Peer-to-Peer Lending, Some See Bubble Brewing
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Peer-to-peer loans have skyrocketed since 2012, though they still amount to just 0.08 percent of the $96 trillion in outstanding global corporate and household debt. Clockwise from top: Larry Fink, John Mack, Larry Summers, and Renaud Laplanche
Is peer-to-peer lending out of control?
There’s certainly some cause for concern. Consider these facts: P2P loan volume is poised to hit $77 billion this year, a 15-fold increase from just three years ago. LendingClub, the No. 1 player worldwide, is trading at a market value of about $7 billion even though it lost $33 million last year. And in a flashback to the subprime mortgage boom, P2P startups have begun bundling and selling off loans through securitizations…
As Money Pours Into Peer-to-Peer Lending, Some See Bubble Brewing
