Author Topic: Low Risk Notes Experiment  (Read 1748 times)

Rob L

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Low Risk Notes Experiment
« on: November 02, 2017, 06:17:17 PM »
By the end of 2016 I gave up on high risk high interest rate D & E loans and began purchasing B grade notes exclusively. The sample size is small; 258 notes of $25 each between the dates 1/24/2017 and 2/27/2017. These were new loans purchased at the feeding times (not FolioFn) and I have not purchased any new LC notes since then.

I purchased 258 B1 - B5 grade notes with an average interest rate of 10.80%; total investment $ $6,450.
My profit is $399.43 or about 7.43% annualized.
There have been 3 charge off's; 1 roller (no payments), 1 "semi-roller" (2 payments), and one that made 6 payments before charge off.
I now have two late 3-120 and three IGP.
A whopping total of 41 of 258 (16%) were fully paid.

All in all that's about a 7.43% annualized return for my 2017 B grade notes. Not a bad thing.


rawraw

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Re: Low Risk Notes Experiment
« Reply #1 on: November 02, 2017, 07:17:16 PM »
Glad to see.a happy post! It's all been so depressing lately

EmilyFoxSeaton

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Re: Low Risk Notes Experiment
« Reply #2 on: November 07, 2017, 07:10:35 PM »
So far this year I have been doing solid. I have a NAR of 8.6 and have mostly picked A-D loans.  About 2K investment.

I have had 8 notes go into grace or late. I sold 6 of them but realized I was losing money doing that because a lot would recover.  I also have a lot of fully paid. Fine by me.

There were probably about 10 that went into grace but then recovered.  I have tried all different things.
- random picking.
- buying older notes that didn't have a lot of time left.
- buying newer notes at a discount..
- finally my current trick, just buy notes with high salaries, low payments, zero deliquencies and a decent credit score. If I find a particularly promising note, I put more than $25 in. I try to buy debt consolidation or credit card refinancing. I don't like "other" as a category.

I have been in a year and I have zero charge offs. And only one now that is over 30 days late.

jd

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Re: Low Risk Notes Experiment
« Reply #3 on: November 07, 2017, 10:18:07 PM »
Quote
- finally my current trick, just buy notes with high salaries, low payments, zero deliquencies and a decent credit score. If I find a particularly promising note, I put more than $25 in. I try to buy debt consolidation or credit card refinancing. I don't like "other" as a category.

That doesn't sound too far off from what I look for in notes.  I'm glad to see you are having success with it. I hope I get similar results.