Author Topic: High demand for D-G grades  (Read 2282 times)

Lloigor

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High demand for D-G grades
« on: January 08, 2013, 09:01:20 PM »
From my perspective there are too few borrowers and too many lenders.  At the lower grades that I favor (D-G grade with high income, among other restrictions) the loans that meet all of my requirements get bought up almost immediately, certainly before they get to 24 hours old.  I saw one with 13d 22h remaining, it had 3 investors and was 93% funded.  Not to mention they never last long enough to get preapproved or to have income verified anymore.  Anyone else feel like they have to check 3 times a day to beat other investors now?

I realize that most loans have historically been graded A-D and the high risk stuff is comparatively rare on the overall platform, and I only started in August 2012, but prior to November I didn't have this problem.

Zach

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Re: High demand for D-G grades
« Reply #1 on: January 08, 2013, 09:09:35 PM »
From my perspective there are too few borrowers and too many lenders.  At the lower grades that I favor (D-G grade with high income, among other restrictions) the loans that meet all of my requirements get bought up almost immediately, certainly before they get to 24 hours old.  I saw one with 13d 22h remaining, it had 3 investors and was 93% funded.  Not to mention they never last long enough to get preapproved or to have income verified anymore.  Anyone else feel like they have to check 3 times a day to beat other investors now?

I realize that most loans have historically been graded A-D and the high risk stuff is comparatively rare on the overall platform, and I only started in August 2012, but prior to November I didn't have this problem.

In general, I think this is true. As larger investors start to realize that the bulk of larger returns are possible with the riskier credit grades, D-G loans will (and are) becoming more scarce on the platform.

rev

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Re: High demand for D-G grades
« Reply #2 on: January 08, 2013, 10:05:40 PM »
[...] and I only started in August 2012, but prior to November I didn't have this problem.

I agree!

Zach

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Re: High demand for D-G grades
« Reply #3 on: January 08, 2013, 10:26:26 PM »





Taking a look at the above charts, general supple of D-G loans has been down in the lat 30-40 days. The sharpest decrease has been with F/G loans. B grade notes (higher quality borrowers) have seen a steady increase in supply over the last 40 or so days.

yojoakak

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Re: High demand for D-G grades
« Reply #4 on: January 08, 2013, 11:26:11 PM »
According to LendingClub, the best returns from from FEGD loans. Has anyone double checked their math?

https://www.lendingclub.com/info/statistics.action

brycemason

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Re: High demand for D-G grades
« Reply #5 on: January 08, 2013, 11:33:46 PM »
zpbsfg,

What's the horizontal axis? Days since a certain time?

Bryce

Randawl

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Re: High demand for D-G grades
« Reply #6 on: January 09, 2013, 12:55:41 AM »
It seems the horizontal axis is "Hours."

brycemason

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Re: High demand for D-G grades
« Reply #7 on: January 09, 2013, 10:32:39 AM »
Since when? Beginning of month?

Lloigor

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Re: High demand for D-G grades
« Reply #8 on: January 09, 2013, 12:40:10 PM »
To when on the calendar does the event at ~830 correspond?

Zach

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Re: High demand for D-G grades
« Reply #9 on: January 09, 2013, 01:03:11 PM »
Since when? Beginning of month?

Its measured for the last 40 days. The charts are from P2PAnalytics.com