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oai:www.ideals.illinois.edu:2142/109614 2023-07-11 col_2142_5131 col_2142_14830 com_2142_5130 com_2142_14829 com_2142_8903

Bernhardt, Dan M Bernhardt, Dan M Krasa, Stefan Hong, Seung-Hyun Lemus, Jorge Arga, Desak Nyoman Filiadewi 2021-03-05T21:45:41Z 2021-03-05T21:45:41Z 2023-03-05T21:47:41Z 2020-12-04 2020-12 This dissertation consists of three chapters on the peer-to-peer (P2P) lending market. All three chapters are based on data from the same U.S.-based P2P lending online platform, LendingClub. In Chapter 1, I study the funding rate of loans in the primary market. I use a large dataset of LendingClub's daily primary market listing combined with its monthly loan progress data to determine what factors affect funding rate to vary across loans and across time. I find that variation in the funding rate within a loan can be explained by its availability. As a loan gets closer to be fully funded, investments are coming at a higher rate for this loan. I also find that a borrower's creditworthiness is significant in explaining the varying funding rates across loans. In Chapter 2, I explore the secondary market of LendingClub using the sellers' perspective. The secondary market is a platform where lenders can buy and sell notes originated from loans issued in LendingClub's primary market. A note is a partial investment of a loan. I use a large dataset of daily secondary market note listing to examine which loans are more likely to have notes listed in the secondary market. I find that notes of grade A and of grade D, which are the least risky and the riskiest assessed grades, are more likely to be listed in the secondary market than loans of grade B or grade C. Lenders are also more likely to list their note in the secondary market at a negative markup when it has a late payment history. I find that the sellers' behavior are consistent with my findings on the buyers' behavior in Chapter 3. In this last chapter, I explore the secondary market of LendingClub using the buyers' perspective. Using the secondary market data listing, I explore the factors that affect a buyer's probability in purchasing a note from the secondary market. I find that across all periods of listing, grade-B and grade-C notes are always less preferred than either a grade-A note or a grade-D note. As the period increases, the preference for grade-A notes goes down while it goes up for grade-D notes. I provide a simple theoretical framework to explain the buyers' belief-updating process before deciding whether to purchase a note or not in the secondary market. Submission published under a 24 month embargo labeled 'Closed Access', the embargo will last until 2022-12-01 The student, Desak Nyoman Filiadewi Arga, accepted the attached license on 2020-12-01 at 10:00. The student, Desak Nyoman Filiadewi Arga, submitted this Dissertation for approval on 2020-12-01 at 10:06. This Dissertation was approved for publication on 2020-12-04 at 09:18. DSpace SAF Submission Ingestion Package generated from Vireo submission #16006 on 2021-03-04 at 16:32:48 Made available in DSpace on 2021-03-05T21:45:41Z (GMT). No. of bitstreams: 3 ARGA-DISSERTATION-2020.pdf: 2006117 bytes, checksum: fa82c0ee5e3c54456e626b86aa082b21 (MD5) LICENSE.txt: 4207 bytes, checksum: 7200043d979bb25d49af4cfe58bcdd53 (MD5) PROQUEST_LICENSE.txt: 4553 bytes, checksum: 19ae5a9fbe284ddf7c95921f2628a3ef (MD5) Previous issue date: 2020-12-04 Embargo set by: Seth Robbins for item 117319 Lift date: 2023-03-05T21:45:47Z Reason: Author requested closed access (OA after 2yrs) in Vireo ETD system Embargo set by: Seth Robbins for item 117319 Lift date: 2023-03-05T21:47:41Z Reason: Author requested closed access (OA after 2yrs) in Vireo ETD system Author requested closed access (OA after 2yrs) in Vireo ETD system Limited application/pdf http://hdl.handle.net/2142/109614 en Copyright 2020 Desak Nyoman Filiadewi Arga Peer-to-peer lending Essays on peer-to-peer lending text Thesis Economics Economics University of Illinois at Urbana-Champaign Dissertation Ph.D.