Valuation of Consumer Loans/Notes
Panel entitled, "Valuation of Consumer Loans/Notes." Panelists include: John Schrader, Duff & Phelps; James Wu, MonJa; Moderator: Gary Simanson, Endeavor Capital Management. Recorded at LendIt USA 2017. Panel discusses how to determine the valuation of loans and in turn how to value funds which hold loans; over the last four years loan methodologies have changed from bank accounting (holding loans at par value and holding a reserve against expected losses) to using fair value; the most prevalent approach is a discounted cash flow analysis; this shift happened as more investors entered this space and funds got larger; James Wu of MonJa and John Schrader of Duff & Phelps dig into the details of fair value and how to comfort investors who are looking to invest in this space.