Funding Circle Cuts Returns Again

UK based online small business lender Funding Circle has cut expected returns for the second time; the firm says there is a higher risk of default on loans made in the U.S. and UK from 2017 and 2018; the higher risk option now has expected returns of 4.5 to 6.5 percent, down from 5.5 to 6.5 percent; the lower risk option is now forecasted at 4.3 to 4.7 percent, down from 4.9 to 5.2 percent; there is concern in the market overall about loan quality as Zopa also had to lower expectations for investors early this year. Source.

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