Andy Rachleff, the CEO of Wealthfront argues that managed real estate funds perform poorly compared to low cost ETFs like Vanguard's REIT Index Fund; Fundrise's CEO Benjamin Miller responded in a blog post, writing "Less competitive, inefficient markets mean an investor can generally buy comparable assets at lower prices than efficient markets. With Shiller price-to-earnings (PE) ratios at all-time historic highs only seen in 1929 and 2001, more than ever investors need to find ways to invest at a reasonable cost basis."; Miller also argues that long term investors are paying a premium for the liquidity that ETFs offer, something that these investors don't need. Source
Wealthfront, a robo advisor, has launched Path, a new offering to aid in retirement planning; by connecting financial accounts, Path will analyze past behavior to ensure users are on the right track for retirement savings while also taking into consideration social security, inflation and investment returns; users can also modify settings such as savings to project changes to their financial situation; Path also helps users prioritize contributions and allocations to both Wealthfront and non-Wealthfront accounts taking into consideration tax advantaged accounts. Source
A WeBank employee wrote a post in WeChat Moment, announcing that the loan amount of Weilidai (WeBank's micro loan product) is over RMB100 billion ($14.92 billion); Weilidai's loan amount has increased almost 300% over the past seven months; according to its financial results, WeBank lost RMB583 million ($86.97 million) in the first year (2015); but in 2016, it made a profit of RMB401 million ($59.82 million); in the first four months of 2017, WeBank made a profit of RMB500 million ($74.59 million); in terms of product, WeBank has launched an enterprise-grade product, "Weiyedai"; Weiyedai provides unsecured loans of up to RMB3 million ($447,507) to enterprises, with annual percentage rates ranging from 10.95% to 16.43%. Source (Chinese)
A replay is now available for LendIt's Marketplace Lending 101 forum which was held on Wednesday, January 18; Peter Renton from LendIt and Andrew Dix from Crowdfund Insider answered questions from participants about the marketplace lending industry and discussed how to effectively invest in marketplace loans; many of the topics discussed will be covered further at LendIt USA in March.
A replay is now available for LendIt's Key Considerations for Risk Retention in Securitization forum which was held on Wednesday, January 11, 2017; the webinar provided insight on new risk retention regulations for securitization in effect beginning December 24, 2016; speakers talked about a range of securitization related topics including optimal risk retention structures, commercial considerations related to sponsors and requirements necessary for majority owned affiliates.
Robo adviser Wealthfront has announced in a blog post that it will expand its product offering to include loans; the firm is one of the premier robo advisers in the US; through a partnership with RBC Capital Markets, Wealthfront has uniquely designed a lending product for its current clients with at least $100,000; loans can be issued for approximately 30% of a client's account value. Source
Customers are becoming more demanding as interest rates climb; the average interest rate paid by the biggest US Banks jumped to 0.40% in the third quarter; sophisticated customers are now reconsidering where they hold their cash accounts; Fifth Third is one bank that is raising rates for these types of customers; wealth management deposits have decreased at Bank of America, JP Morgan and Wells Fargo in the third quarter according to Autonomous Research. Source
A replay is now available for LendIt's Marketplace Lending 101 forum which was held on Wednesday, January 18; Peter Renton from LendIt and Andrew Dix from Crowdfund Insider took questions from participants about the marketplace lending industry and discussed how to effectively invest in marketplace loans. You can view the webinar replay here:
LendIt's most recent forum, Key Considerations for Risk Retention in Securitization, was held on Wednesday, January 11, 2017; the webinar provided insight on new risk retention regulations for securitization in effect beginning December 24, 2016; speakers provided insight on a range of securitization related topics including optimal risk retention structures, commercial considerations related to sponsors and requirements necessary for majority owned-affiliates; a replay of the webinar is now available.
LendIt will be hosting a LendIt Forum today featuring speakers Peter Renton from LendIt and Andrew Dix from Crowdfund Insider; participants can submit questions for the speakers to learn more about the evolution of the industry and how to effectively invest in marketplace loans; the forum will take place at 2:00 PM EST; register here and join the webinar today. Source