S&P Global: European P2P lending prone to mispricing and inefficiencies, new study claims

Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, comments on peer-to-peer lending platforms and says they can be “inefficient at matching risks with return, but the reality is more nuanced”. In an interview with S&P Global, Professor Rau commented: “The model of lenders picking and choosing the individual loans that they want to fund can definitely result in mispricing, but this is now considered an outmoded way of doing P2P.”

Read the full article [spglobal.com]