Abstract
Peer-to-peer lending is a new highly liquid market for debt, which is rapidly growing in popularity. Here we consider modelling market rates, developing a non-linear Gaussian Process regression method which incorporates both structured data and unstructured text from the loan application. We show that the peer-to-peer market is predictable, and identify a small set of key factors with high predictive power. Our approach outperforms baseline methods for predicting market rates, and generates substantial profit in a trading simulation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Proceedings of the AAAI Conference on Artificial Intelligence
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
