Author Topic: I'm peeved with lack of EFG loans  (Read 5585 times)

Bruceski44

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I'm peeved with lack of EFG loans
« on: August 09, 2016, 10:49:55 AM »
I've been happily investing in DEFG loans recently to skew my portfolio for higher total return and all of a sudden, about a week and a half ago, the supply completely dried up! I think LC is restricting these loans from the fractional in order to feed the newly returning institutional investors. They fled at the first sign of trouble and now are being lured back by big incentives. Meanwhile I stick around and get shafted. I now have a large cash balance and am yearning for a supply of loans in the FG range. I sent a message to LC, but have heard nothing back. I'm sure they would tell me to relax my filter, but I already have enough ABCD loans and don't need more. NSR tools have helped me hone my filter and all I want is to return to the way the platform worked for most of this year, up until two weeks ago.

Larry321

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Re: I'm peeved with lack of EFG loans
« Reply #1 on: August 09, 2016, 11:50:15 AM »
Bruceski44,

I tend to agree with you and have decided not to reinvest or add new funds and I will slowly withdraw money and return it to Fidelity.

LC notes investor for 3 years

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ThinleyWangchuk

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Re: I'm peeved with lack of EFG loans
« Reply #2 on: August 09, 2016, 02:48:03 PM »
I've been happily investing in DEFG loans recently to skew my portfolio for higher total return and all of a sudden, about a week and a half ago, the supply completely dried up! I think LC is restricting these loans from the fractional in order to feed the newly returning institutional investors. They fled at the first sign of trouble and now are being lured back by big incentives. Meanwhile I stick around and get shafted. I now have a large cash balance and am yearning for a supply of loans in the FG range. I sent a message to LC, but have heard nothing back. I'm sure they would tell me to relax my filter, but I already have enough ABCD loans and don't need more. NSR tools have helped me hone my filter and all I want is to return to the way the platform worked for most of this year, up until two weeks ago.

Yeah, pretty much BS.  I tried calling them but they kept me on hold for a very long time.

Fred

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Re: I'm peeved with lack of EFG loans
« Reply #3 on: August 10, 2016, 12:47:24 AM »
I've been happily investing in DEFG loans recently to skew my portfolio for higher total return and all of a sudden, about a week and a half ago, the supply completely dried up!

Have you considered getting the DEFG notes from Folio?

mchu168

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Re: I'm peeved with lack of EFG loans
« Reply #4 on: August 10, 2016, 02:02:59 AM »
I agree it's frustrating. My cash balance is piling up every day. But I do believe that the new management is doing what's right for the longer-term viability of the company. Which will ultimately benefit us investors.

justice42

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Re: I'm peeved with lack of EFG loans
« Reply #5 on: August 10, 2016, 09:29:44 AM »
Have you considered getting the DEFG notes from Folio?

Shhhhh, thats my market! lol yeah lots of good notes on folio.

fliphusker

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Re: I'm peeved with lack of EFG loans
« Reply #6 on: August 10, 2016, 11:08:01 AM »
Have you considered getting the DEFG notes from Folio?

Shhhhh, thats my market! lol yeah lots of good notes on folio.
SSSSHHHHHH, do not tell people about the good deals.  :(  HA

rj2

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Re: I'm peeved with lack of EFG loans
« Reply #7 on: August 10, 2016, 11:19:04 AM »
There are a handful of notes in folio. It's hard for me to assess whether the folio notes meet my quality bar, they generally have not got the attributes I would look for in a new note but a positive payment history may make up for that.

Still, there are not many.

New loans are almost non existent. I have been forced to shift from investing in DEFG to investing in BC notes just to keep my cash invested. Maybe it's not a bad thing that my portfolio is becoming more conservative.

But most days there are zero notes that meet my standards, whereas there always used to be.

I'm having trouble reinvesting the payments I received so I opted NOT to put my IRA contribution into LC this year. I put it in vanguard instead. I just don't believe I would be able to find a way to invest $5500 at LC right now.

Larry321

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Re: I'm peeved with lack of EFG loans
« Reply #8 on: August 10, 2016, 12:01:18 PM »
There are a handful of notes in folio. It's hard for me to assess whether the folio notes meet my quality bar, they generally have not got the attributes I would look for in a new note but a positive payment history may make up for that.

Still, there are not many.

New loans are almost non existent. I have been forced to shift from investing in DEFG to investing in BC notes just to keep my cash invested. Maybe it's not a bad thing that my portfolio is becoming more conservative.

But most days there are zero notes that meet my standards, whereas there always used to be.

I'm having trouble reinvesting the payments I received so I opted NOT to put my IRA contribution into LC this year. I put it in vanguard instead. I just don't believe I would be able to find a way to invest $5500 at LC right now.

I have observed the same thing and feel as you do.
I am not sure whether it is worth switching to buying B and C notes or just taking my money out and investing in Fidelity or Vanguard funds.

What return are you getting after dafaults on the Bs and Cs?
LC notes investor for 3 years

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fliphusker

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Re: I'm peeved with lack of EFG loans
« Reply #9 on: August 10, 2016, 12:11:09 PM »
There are a handful of notes in folio. It's hard for me to assess whether the folio notes meet my quality bar, they generally have not got the attributes I would look for in a new note but a positive payment history may make up for that.
I took my initial LC filter onto FOLIO, then Anil opened my eyes that it was a silly thing to do. (We had a solid discussion but I was not seeing the bigger picture during it. I have since changed my view.) You just have to take a different approach to FOLIO.  I still adhere to some backbone principles, though.  Might be silly not to buy notes from the "sand states", it is just something i am going to stick to. 
PeerCube and NSR both have fantastic filtering options for FOLIO. 

Ran

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I'm peeved with lack of EFG loans
« Reply #10 on: August 10, 2016, 02:38:26 PM »
There are a handful of notes in folio. It's hard for me to assess whether the folio notes meet my quality bar, they generally have not got the attributes I would look for in a new note but a positive payment history may make up for that.
I took my initial LC filter onto FOLIO, then Anil opened my eyes that it was a silly thing to do. (We had a solid discussion but I was not seeing the bigger picture during it. I have since changed my view.) You just have to take a different approach to FOLIO.  I still adhere to some backbone principles, though.  Might be silly not to buy notes from the "sand states", it is just something i am going to stick to. 
PeerCube and NSR both have fantastic filtering options for FOLIO.

Agree that LC filter could not be directly applied to Folio. The reason is not because Folio notes behave differently, but due to the fact Folio notes do not sell at the par. It's a deal as long as there is reasonable discount for current notes with various FICO and payment history

Larry321

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Re: I'm peeved with lack of EFG loans
« Reply #11 on: August 10, 2016, 05:15:44 PM »
After subtracting predicted default rates, the A rated loans with the highest FICO score only will earn 3.26 %

My ANAR has dropped. I think LC has reformulated how they calculate everything.

Time to slowly quit reinvesting and remove my money.

LC notes investor for 3 years

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Rob L

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Re: I'm peeved with lack of EFG loans
« Reply #12 on: August 10, 2016, 06:53:37 PM »
After subtracting predicted default rates, the A rated loans with the highest FICO score only will earn 3.26 %

Hate to beat an old drum (not really), but 3.26% from prime+ borrowers ain't that bad in the current reach for yield environment, were it not for the additional "risk of ruin" having notes on LC's balance sheet. However that is an issue, apparently, LC feels doesn't needs to be addressed at the current time (if ever). That same issue had me removing 40% of my investment recently.

Meanwhile LC is giving all the EFGH loans to Jefferies. Retail lenders are NOT on LC's radar. Much bigger fish to fry.

What's the old joke; if you are sitting at a poker table and don't know who the patsy is, ...

rj2

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Re: I'm peeved with lack of EFG loans
« Reply #13 on: August 10, 2016, 10:52:10 PM »
I do not believe a note on LC platform can have a rating higher than LC's own rating, and I do not believe LC's own rating is better than B.

Rob L

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Re: I'm peeved with lack of EFG loans
« Reply #14 on: August 11, 2016, 10:45:42 AM »