LAFDI market report - Friday 8th January

By Rupert Taylor on Friday 8 January 2016

Alternative Lending

This week we outline both the one week LAFDI performance as well as the 4 week statistics that encompass the holiday interrupted period since the last update.       

Four Week return

LAFDI

-5.20%

MSCI World

-4.66%

Top 5 performing Stocks in last week

1

EPO LN Equity

25.15%

2

TUNG LN Equity

9.58%

3

BAS1V FH Equity

8.89%

4

TAXI US Equity

6.18%

5

PAYS LN Equity

3.21%

Worst 5 performing Stocks in last week

1

LC US Equity

-21.79%

2

SGM US Equity

-11.95%

3

TREE US Equity

-11.69%

4

PFSI US Equity

-11.36%

5

IPF LN Equity

-11.03%

 

* Returns are calculated for the four weeks from Weds 16th December to the local market close on Wednesday 6th January. 

Weekly return

LAFDI

-5.71%

MSCI World

-5.16%

Top 5 performing Stocks in last week

1

EPO LN Equity

38.00%

2

TUNG LN Equity

19.34%

3

TAXI US Equity

2.56%

4

RDL LN Equity

1.22%

5

VSL LN Equity

-1.00%

Worst 5 performing Stocks in last week

1

SGM US Equity

-16.15%

2

LC US Equity

-13.94%

3

WEX US Equity

-12.09%

4

ONDK US Equity

-10.49%

5

FLT US Equity

-10.10%

 

* Returns are calculated for the week to the local market close on Wednesday. 

Over both time period the LAFDI has endured a similarly torrid time as global equity markets – in fact it has fractionally under-performed. 

After being notably weak in the period leading up to the holiday season Earthport PLC staged a notable turnaround over the festive season.  The company reported that it had been selected by Citizens Financial Group Inc to provide cross-border payments services.  The international payment network group also reported a heavyweight new appointment. Ex-Morgan Stanley and JP Morgan brokerage head Peter Klein will become the company’s new global head of FX. 

Meanwhile Tungsten Corporation PLC managed to build on the positive move it made in early December on the back of interim results and news that it planned to dispose of its bank.  After rising on the back of those interims the shares made further gains in the first week of the year buoyed analyst upgrades. 

The standout name on the downside has been Lending Club Corp.  In late December the largest US marketplace lender followed the lead of the Fed and announced that it had raised interest rates on its new loans by an average of 0.25%.  It is not clear that this move should have worried investors – quite the reverse in fact.  However the shares have also been dogged by analyst downgrades, some small sales of stock by insiders, and some unconfirmed speculation of further issuance of equity to come.  The first Fed rate rise seems to have provoked a round of concern as to how  the company would fare in a more difficult credit environment. Whilst returns in US market place lending did turn sharply negative in the last downturn it is notable that the models of the companies have changed significantly since and, one would expect, lessons have been learned.   The market has also become preoccupied by fears of increasing regulation and competition within the sector. 

Please note – The LAFDI is now available on Bloomberg.  Tickers:

LAFDITR GO for the Total Return Index

LAFDIPR GO for the Price Return Index

This week we outline both the one week LAFDI performance as well as the 4 week statistics that encompass the holiday interrupted period since the last update.   

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Companies in this Article:

LendingClub
Morgan Stanley

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