YRD - Yirendai Revenues Come From Suspect Haircut Loans. U.S. Investors Unaware Of Critical Information. Shares Are Overvalued By 50%
Introduction
Yirendai (YRD) is a Chinese peer to peer (P2P) fintech lending company, matching lenders with borrowers who are below the standard of credit issuance from Chinese retail banks, but nonetheless requires capital for personal expenses.
Over 60% of YRD's FY 2018 revenues stem from "haircut loans" (P2P service fees charged to borrowers) that are prohibited by Chinese regulation. Recent developments in the P2P lending sector with regards to questionable lending practices, unethical collections, and usury are not being disclosed in YRD's SEC filings, leaving U.S., Canadian, and international investors completely in the dark.
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