Author Topic: How to bulk sell notes?  (Read 7145 times)

brylend

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How to bulk sell notes?
« on: May 26, 2016, 01:03:20 AM »
I get the bulk selling strategy of starting with a higher markup, and working your way down.  But, I have 4000+ notes.  When I just go to Folio and put in a markup, I get an error that YTM is negative.  I'd have to manually fix up several hundred notes, which is super painful..  Is there a better way?

Fred

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Re: How to bulk sell notes?
« Reply #1 on: May 26, 2016, 05:02:30 AM »
Selling at a markup will take a long time. 

Forget markups,sell at a discount.

The better the discount, the better chance your notes will get sold.

rawraw

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Re: How to bulk sell notes?
« Reply #2 on: May 26, 2016, 05:39:31 AM »
Sell at a big enough discount and I'll coordinate with you to ensure you get your stuff sold fast :)

LendingRobot doesn't charge for using their Folio selling tool

sommers

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Re: How to bulk sell notes?
« Reply #3 on: May 26, 2016, 09:22:53 AM »
I get the bulk selling strategy of starting with a higher markup, and working your way down.  But, I have 4000+ notes.  When I just go to Folio and put in a markup, I get an error that YTM is negative.  I'd have to manually fix up several hundred notes, which is super painful..  Is there a better way?

Am going through the same exercise--I have 2,000 notes to liquidate.  What I did that finally worked was I segregated the very low principle balance notes and didn't post them because those seem to be the majority of the YTM warnings.  I got probably 75% of my notes put up for sale--and spent about an hour--cleaning up the YTM negative yields---It was just trial and error

jheizer

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Re: How to bulk sell notes?
« Reply #4 on: May 26, 2016, 10:13:45 AM »
I'd be curious to see how many if any you all can sell at a markup.  It seems like the entire market has shifted down 2-3% since the news.  Though the last few days I'm not finding nearly as many high discounted ones. 
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Rob L

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Re: How to bulk sell notes?
« Reply #5 on: May 26, 2016, 11:26:29 AM »
I get the bulk selling strategy of starting with a higher markup, and working your way down.  But, I have 4000+ notes.  When I just go to Folio and put in a markup, I get an error that YTM is negative.  I'd have to manually fix up several hundred notes, which is super painful..  Is there a better way?

Am going through the same exercise--I have 2,000 notes to liquidate.  What I did that finally worked was I segregated the very low principle balance notes and didn't post them because those seem to be the majority of the YTM warnings.  I got probably 75% of my notes put up for sale--and spent about an hour--cleaning up the YTM negative yields---It was just trial and error

I'll certainly be interested how this works out. Most recommendations have been to start at a price above which you think a note will sell, then inch down until it's gone. Seems reasonable. However I'm even more interested in the depth of the market. Between the two of you there's 6000 notes to be sold (min $150k, probably a lot more). My fear is that there's just not enough buyer's money to absorb this size (not to mention the notes I'll be listing) in the coming days, weeks and months. To take an extreme example lets say you both listed all your performing notes at a 7% discount (this is NOT a suggestion!). No matter how you cut it, almost all these notes should be very attractive. Some more than others of course. Would they all sell quickly, or would buyer funds be exhausted first? How long would it take? I'm expecting the sale of my notes to take a long time, primarily for this reason and I see no need to be in a hurry. Could be wrong but I've always seen the Folio exit door as a narrow one. It will be learn as you go.

jheizer

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Re: How to bulk sell notes?
« Reply #6 on: May 26, 2016, 11:35:40 AM »
The positive is now that there is an API and multiple services have implemented auto buying/selling there should be a lot more liquidity than there was a year ago.
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AnilG

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Re: How to bulk sell notes?
« Reply #7 on: May 26, 2016, 12:59:04 PM »
You can use my site PeerCube for selling on FOLIO. See the blog post listed below on how to set it up. When you really want to sell at any price (motivated seller), generally Strategy 1: list at certain discount below the lowest listed price works well. It also prevents you from offering excessive discount when you don't need to, you just need to offer more discount that the other guys.

How to automate Note Selling on Lending Club Secondary Market with PeerCube?
https://www.peercube.com/blog/post/how-to-automate-note-selling-on-lending-club-secondary-market-with-peercube

I'd be curious to see how many if any you all can sell at a markup.  It seems like the entire market has shifted down 2-3% since the news.  Though the last few days I'm not finding nearly as many high discounted ones. 

Some of my notes sold at 3+% markup yesterday. Since the problems at Lending Club surfaced, these were my first sales at markup. Previously, I was able to sell 2-4 notes every day at markup.
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sommers

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Re: How to bulk sell notes?
« Reply #8 on: May 26, 2016, 01:28:54 PM »
You can use my site PeerCube for selling on FOLIO. See the blog post listed below on how to set it up. When you really want to sell at any price (motivated seller), generally Strategy 1: list at certain discount below the lowest listed price works well. It also prevents you from offering excessive discount when you don't need to, you just need to offer more discount that the other guys.

How to automate Note Selling on Lending Club Secondary Market with PeerCube?
https://www.peercube.com/blog/post/how-to-automate-note-selling-on-lending-club-secondary-market-with-peercube

I'd be curious to see how many if any you all can sell at a markup.  It seems like the entire market has shifted down 2-3% since the news.  Though the last few days I'm not finding nearly as many high discounted ones. 

I will look into peer cube for sure.  However, any actuary is likely obsolete now due to the "scandal".  I am sure that the market for notes has shifted downward based on the fear factor.

Some of my notes sold at 3+% markup yesterday. Since the problems at Lending Club surfaced, these were my first sales at markup. Previously, I was able to sell 2-4 notes every day at markup.

fliphusker

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Re: How to bulk sell notes?
« Reply #9 on: May 26, 2016, 05:11:57 PM »
You can use my site PeerCube for selling on FOLIO. See the blog post listed below on how to set it up. When you really want to sell at any price (motivated seller), generally Strategy 1: list at certain discount below the lowest listed price works well. It also prevents you from offering excessive discount when you don't need to, you just need to offer more discount that the other guys.

How to automate Note Selling on Lending Club Secondary Market with PeerCube?
https://www.peercube.com/blog/post/how-to-automate-note-selling-on-lending-club-secondary-market-with-peercube

I'd be curious to see how many if any you all can sell at a markup.  It seems like the entire market has shifted down 2-3% since the news.  Though the last few days I'm not finding nearly as many high discounted ones. 

Some of my notes sold at 3+% markup yesterday. Since the problems at Lending Club surfaced, these were my first sales at markup. Previously, I was able to sell 2-4 notes every day at markup.
Since a week or two ago, the FOLIO market it drying up.  :(  Still can not fathom though people buying at a 3% markup.  I am not a FOLIO expert by any means, and do not have a lot tied up there, but have not paid above -2% for a note that fits my tough filters. 
Anil, I would so like to see one of those notes you sold for 3%.  I can understand if you would not be willing to share though. 

jheizer

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Re: How to bulk sell notes?
« Reply #10 on: May 26, 2016, 05:33:23 PM »
And now every time I see a big block go up for sale I wonder if it is one of you guys.  Like an hour or so ago 120+ (3-3.5) ones went up at the same time.  Most with high DTI.
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Rob L

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Re: How to bulk sell notes?
« Reply #11 on: May 26, 2016, 06:56:57 PM »
And now every time I see a big block go up for sale I wonder if it is one of you guys.  Like an hour or so ago 120+ (3-3.5) ones went up at the same time.  Most with high DTI.

Still not me! Haven't finished my homework.

brylend

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Re: How to bulk sell notes?
« Reply #12 on: May 28, 2016, 02:51:51 AM »
Not me, either ;-).  I ended up signing up for Lending Robot.  Kind of a hassle just to use it for the free automated selling, but maybe I'll give it a shot on the buy side too.  Thanks for the pointers.

bdonovan

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Re: How to bulk sell notes?
« Reply #13 on: August 05, 2016, 04:08:53 PM »
Am currently using LendingRobot to liquidate a small account I had with Lending Club.   You set the parameters and it does the work.  Even through LR charges 0.45% of AUM for investing, there is NO charge for selling on Folio (at least no fees from LR).  You generally specify the starting premium % (ie: start at 2% above principal) and the ending discount (ie: 2% below principal) and the # of days to run.  You can specify other things like the Goal $ - which is to stop selling after you've made a certain dollar amount.  If you're liquidating you may not care, but you can also specify filters on which notes to sell based on sub-grade, amount of remaining payments, etc. 

I am no expert at this; I started a sale a few days ago but I've seen it at work.  It re-prices the investments regularly along the pricing parameters you defined - lowering it if they do not sell.  In my case, I am doing it as an experiment to understand the Time To Liquidate for LC and what the cost would be.  My interest is speed so I made it a 5 day sale; will have the full results in 2 days.

Marmaduke

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Re: How to bulk sell notes?
« Reply #14 on: September 21, 2016, 01:52:37 AM »
Am currently using LendingRobot to liquidate a small account I had with Lending Club.   You set the parameters and it does the work.  Even through LR charges 0.45% of AUM for investing, there is NO charge for selling on Folio (at least no fees from LR).  You generally specify the starting premium % (ie: start at 2% above principal) and the ending discount (ie: 2% below principal) and the # of days to run.  You can specify other things like the bathmate review Goal $ - which is to stop selling after you've made a certain dollar amount.  If you're liquidating you may not care, but you can also specify filters on which notes to sell based on sub-grade, amount of remaining payments, etc. 

I am no expert at this; I started a sale a few days ago but I've seen it at work.  It re-prices the investments regularly along the pricing parameters you defined - lowering it if they do not sell.  In my case, I am doing it as an experiment to understand the Time To Liquidate for LC and what the cost would be.  My interest is speed so I made it a 5 day sale; will have the full results in 2 days.

Hi Donovan, I'm certainly interested in hearing how it went with the lending robot. Is it worth it, how'd it go?
« Last Edit: April 05, 2017, 12:23:56 PM by Marmaduke »