What does the model optimise?
It allocates capital among sample profiles while respecting the maximum share and approaching the target return according to the selected priority.
P2P PORTFOLIO OPTIMISATION
P2P PORTFOLIO SIMULATOR
Compare sample allocations based on desired return, acceptable concentration and portfolio size. Three scenarios illustrate the trade-off between diversification and expected return.
This is a simulator, not a recommendation.
Results use a simplified model and sample characteristics. They do not account for the financial condition of platforms or originators, liquidity, arrears, taxes or currency risk.
Results use a simplified model and sample characteristics. They do not account for the financial condition of platforms or originators, liquidity, arrears, taxes or currency risk.
Parameters
Set the constraints and generate new scenarios.
PortfolioEUR 10,000
Target return11%
Max. positionEUR 3,000
Choose parameters and generate scenarios.
Why are there three scenarios?
A single “optimal” result may hide important trade-offs. The scenarios show how different risk weightings change the allocation.
What else should you check?
Regulation, audited reports, group exposure, loan originators, buyback terms, currency, secondary market and arrears history.