Comments on: Lending Club Update: August 2012

By: Guest

Guest — Thu, 28 Mar 2013 05:44:49 +0000

I have just signed up with LendingClub, and have been playing with your suggested filters, but I have run into a few complications. The Minimum Open Lines filter evades me (I can only find a MAX one), the Total Credit Lines only has increments of 10 as options (so 15 can’t be selected).

And when I do manage to get most of the filters in there, I end up with a handful of notes at best, sometimes as little as 1 note. Can this be right? How is one to diversify?

By: Matthew

Matthew — Thu, 11 Oct 2012 10:05:37 +0000

I just randomly found your site today – right after I set up my first bank transfer into my new Lending Club account. Interesting to see the results of somebody who’s been at it for awhile. I now know more exactly what I have to look forward to. Thanks for the updates! Now I need to go check out your initial investment post.

By: Len

Len — Fri, 07 Sep 2012 07:57:54 +0000

Just sold another late 31-120 note at a 30% discount but the other 2 (which are at higher discounts) seem to be sitting tight. I have read on many other blogs and comments that people are able to sell their late notes (16-30 days) at par but I really doubt that is the norm, especially when you can find some current notes at discounts. I have read that because of the volume of notes on the trading platform, that selling off a note is more or less a combination of luck and pricing strategy.

By: Brave New Life

Brave New Life — Thu, 06 Sep 2012 13:34:27 +0000

From the research I’ve done in the past week, it seems like the safest option is to sell notes that are in the grace period at par. This does seem like a good option to avoid defaults, while continuing to invest in high-interest loans.

Although I hadn’t planned on using the FolioFN platform with this experiment, I may go ahead and do that over the next quarter to see how I can maximize results.

Unfortunately, I can’t answer you question about notes canceling prior to the expiration date. Hopefully someone else can chime in on that.

By: Brave New Life

Brave New Life — Thu, 06 Sep 2012 13:29:17 +0000

Thanks for the pointer to Nickel Steamroller, Megan. According to that tool, my “estimated ROI” is 11.10%. Now I need to do a little more research to figure out how they are calculating that. If it’s more valid, I’ll use that in my future updates.

By: Brave New Life

Brave New Life — Thu, 06 Sep 2012 13:23:25 +0000

B – Where do you track this? I’m interested in the information, but your site (p2p-picks.com) seems to be a dummy page right now.

By: Megan

Megan — Thu, 06 Sep 2012 03:21:48 +0000

The ROI calculator on Nickel Steam Roller’s site does a much better job of calculating the return that you are getting. the NAR can be very misleading.

By: Len

Len — Tue, 04 Sep 2012 09:49:24 +0000

I have been playing around with the trading market for the last 2 weeks and have only been able to sell one of my late 31-120 notes for a 90% discount. My other 3 have been sitting in trading between a 30% to 60% discount. I was actually surprised that my note even sold as the lender had already went into bankruptcy. All 4 of my late notes were past 60 days.
Have you guys had issues with notes cancelling before their actual expiration dates? I’ve noticed that any notes that i reprice get new expiration dates but end up cancelling on the original expiration dates before they were repriced.

By: Shane @ Beating Broke

Shane @ Beating Broke — Tue, 04 Sep 2012 02:18:20 +0000

The ones I’ve sold, were only a few over the 30 day mark. At that point, I was able to sell them for the outstanding principle. e.g. in your example, I would have sold it for $20.

Keep in mind that if the note is paid through maturity, it’s actually worth something like $23-27 depending on interest, so it’s still a discount, but you’re able to get the principle back out. Now, if it were something like 60 days past, I’d expect to have to discount it further, but I’ve never had one get that far, yet.

By: B. Mason

B. Mason — Sun, 02 Sep 2012 16:21:45 +0000

Al, every quarter I create a chart that tracks effective charge off month for vintages of LC loans. Peter Renton at social lending.com published the chart many many blog posts ago. Charge off starts immediately, rises faster in the first year to 18 months and then slows (but does continue to grow) until month 36.