Reader:
Hi AK,
I am glad to chance upon your blog recently and is currentlu busy reading up on the various blog post which is quite informative.
I recently came across a website which was featured in (a popular personal finance blog) which indicates returns of investment up to 14% through P2P lending to SMEs.
I am in the process of checking if these are guaranteed returns which i highly doubt so.
Like to understand more of your view on this.
AK:
Hi,
You might be interested in this blog:
http://singaporeanstocksinvestor.blogspot.sg/2015/06/to-make-20-per-annum-we-could-lose-our.html
If we say junk bonds must offer higher coupons to attract lenders because they are risky (think risk of default), for example, Swiber offered a coupon in excess of 7%, what could a 14% coupon from a borrower mean? ......