Tradefair & Financials
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25 Aug 11
02:23
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24 Jul 06
thanks in advance.
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*6.9 percent PA Average achieved on money
lent over the last 12 months (after fees, before bad debt)" a very average return, BEFORE bad debt. |
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but i am led to believe if spreading the risk, ie want to lend 10k so lend 1000 x £10, then bad debt will amount to very little?
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don't know the details of this scheme but in theory one default in 10 gives you a 10 percent loss. Even if this is worst case (though Zopa collapsing is probably worst case) then 6.9 percent pa still isn't that good.
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i understand bad debt is only expected to be 0.05% with zopa
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interestingly i see that balderton capital, who invested in betfair, also invested in zopa.
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if they're confident with that expectation they could offer the 6 percent guaranteed and pocket the .85 as profit.
my guess is they're not so confident. |
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zopa, like betfair, don't lose their money, they just take the commissions, the punters take on the risks and losses.
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