Category Archive for: ‘Machine Learning’

Analyzing Lending Club Payment History

Irr

Analyzing Lending Club Payment History There are several ways to determine the Return on Investment (“ROI”) for an individual note and thus derive a return of a portfolio of notes. Below is a quick summary of various prevailing methods and their limitations Method Limitations Simple Interest Doesn’t consider payment history Doesn’t consider time value of money and understates the return …

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Loan Survival Analysis

Advanced Machine Learning

Survival analysis is a collection of statistical procedures for data analysis for which the outcome variable of interest is time until an event occurs.  So how does survival analysis help choose better p2p loan investments?  Generally, machine learning models are designed for loan classification (fully paid or charged off).   This assumes that all loans used in the training set …

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