What Drives Pricing Behavior in Peer-to-Peer Loan Primary and Secondary Markets?

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Motivation
• Literature Review
• Bondora Overview
• Lending on Bondora
• Does Bondora fulfil the classic P2P promises?
• Main Findings
• The Datasets
• Dummy Regressions
• Primary Market Regression
• Secondary Market Regression
• Closing Section
• Conclusion
• Limitation

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This bachelor thesis investigates the pricing behavior in peer-to-peer (P2P) loan markets, focusing on the primary and secondary markets of the Bondora platform. The study aims to analyze the factors influencing interest rates set by the platform on Bondora’s primary market and to examine the discount rate applied to loan shares traded on its secondary market. The study seeks to identify key determinants of loan pricing in both markets and to assess the predictability of this behavior.

• Pricing behavior in P2P loan markets
• Factors influencing interest rates on the primary market
• Discount rates applied to loan shares on the secondary market
• Predictability of pricing behavior in both markets
• Impact of risk and borrower characteristics on loan pricing

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter introduces the concept of P2P lending, its growth, and challenges faced by platforms. It provides a detailed overview of Bondora as a platform, outlining its lending process and its adherence to traditional P2P promises.
• Main Findings: This chapter delves into the data used in the analysis and presents the results of dummy regressions. It then focuses on the primary market regression, examining the influence of variables on the interest rate set by Bondora.

Schlüsselwörter (Keywords)

The thesis focuses on the primary and secondary markets of peer-to-peer (P2P) lending, specifically on the platform Bondora. Key areas of investigation include pricing behavior, interest rates, discount rates, loan characteristics, borrower risk, and data analysis. The study utilizes regression analysis to assess the impact of various factors on loan pricing in both markets.