[isaacdstern]

Marcus knows exactly what I think about it

[MCNetwork]

A funder needs to stick to his core competency and crush it. Diversification of product offerings isn't very effective in this business. A+ paper carries high risk as well because the factors are low and dollar amounts are very high. Since C/D paper deals are usually low dollar amounts, then a high risk lender aggressively entering the A+ space will find the blended rate of his overall portfolio come dangerously close towards breakeven. An A paper whale who defaults on you can be a gut shot.

[mcaguru]

A funder needs to stick to his core competency and crush it. Diversification of product offerings isn't very effective in this business. A+ paper carries high risk as well because the factors are low and dollar amounts are very high. Since C/D paper deals are usually low dollar amounts, then a high risk lender aggressively entering the A+ space will find the blended rate of his overall portfolio come dangerously close towards breakeven. An A paper whale who defaults on you can be a gut shot.

It will be interesting to see.. My guess is R&D is going to be a big department at the high risk houses in 2017....