A third investment trust investing in alternative loans has launched on the London Stock Exchange. Ranger Direct Lending began trading on Friday with a market capitalisation of Â£135m.
“Derivatives could help satisfy investors’ demand for P2P assets, while also helping others hedge risks on loans they’ve already bought. The instruments could also bring more investors swooping into the market simply to place speculative wagers.”
The fast-changing technological infrastructure of financial transactions, including nonbank finance, digital currencies, peer-to-peer lending and crowd-funding present a challenge to the monetary policies of the Federal Reserve and other top central banks, says Randall Kroszner, a former Fed board governor.
Lateral Investment Management is one of a a legion of new players are gunning for market share amid a changing landscape for lending.
The banking industry as a whole will survive startups. But many individual banks will fail to make the changes necessary to stay relevant in a rapidly changing market.
Last week, I had the pleasure of attending LendIt, the largest annual conference about online lending, and participating as the moderator of a panel about the student loan market.
This fourth edition monitors SMEs’ and entrepreneurs’ access to finance in 34 countries over the period 2007-13, across an expanded array of indicators.
Thanks to the alternative lenders including crowdfunding and peer-to-peer lending SMEs have had somewhere else to turn to when after funding.