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City AM: Peer-to-peer lending: What will happen in a downturn?

Harriet Green looks at peer-to-peer (P2P) lending market in the UK and what P2P companies should be looking for in case there’s another recession coming up. There is a growing temptation to look at P2P loans as an asset class, says Robert Wardrop, executive director of the Cambridge Centre for Alternative Finance (CCAF) at Cambridge Judge Business School. “There is a generalisation going on, and what will emerge in a downturn is that the loans originated by different platforms may behave differently. People are going to become more discriminatory because of that.”

Read the full article [cityam.com]