Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: lascott on October 19, 2017, 12:03:35 AM

Title: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: lascott on October 19, 2017, 12:03:35 AM
Kid's LC account email received this LC promotional today:
Subject: How LendingClub Notes May Help You Generate Long-Term Wealth

Quote
If you're working towards long-term financial goalsólike saving for a child's college education, funding your retirement, or passing wealth between generationsóLendingClub Notes should be on your radar.
 
While many investors turn to stocks due to their historical ability to generate healthy returns, stocks aren't the only game in town. In fact, LendingClub Notes may offer solid returns and have delivered historical returns between 4-6%(1), making them a potential tool to build wealth for the long-term.
 
Find out how LendingClub Notes may fit into your overall investment strategy and help you take strides toward your long-term investment objectives in our latest blog post.
 
Read More

The (1) footnote only refers to A-C notes:
Quote
1. 4.86%-6.69% average historical returns for loan grades A through C as of June 30, 2017. To be included in the historical returns ("Historical Returns") calculation, a Note must have been originated prior to December 31, 2015. Historical Returns are LendingClub's adjusted net annualized returns ("Adjusted NAR") for Notes with Grades A through C. Adjusted NAR is calculated using the formula described here. Historical returns are based on actual borrower payments received each month, net of fees, actual charge offs, recoveries, and estimated future losses. To estimate future losses, we apply a charge-off rate estimate to the outstanding principal of any loans that are past-due but not charged off. The charge-off rate estimate is based on historical charge-off rates by loan status over a 9-month period. Historical performance is not a guarantee of future results. LendingClub Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the size and diversity of the portfolio, the exposure to any single Note, borrower or group of Notes or borrowers, as well as macroeconomic conditions. Notes are offered by prospectus filed with the SEC and investors should review the risks and uncertainties described in the prospectus prior to investing in the Notes.
Title: Re: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: rawraw on October 19, 2017, 12:21:04 AM
Whenever I started lending Club in 2008 or whenever, they used to do this sort of email marketing with webinars. Looks like they may be refocusing on retail assets?
Title: Re: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: AnilG on October 19, 2017, 12:27:45 AM
It is just Lending Club blog post turned into promotional email. They are just trying to widely distribute the blog content for maximum visibility.

https://blog.lendingclub.com/lendingclub-notes-long-term-wealth/
Title: Re: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: lascott on October 19, 2017, 02:26:31 AM
It is just Lending Club blog post turned into promotional email. They are just trying to widely distribute the blog content for maximum visibility.
https://blog.lendingclub.com/lendingclub-notes-long-term-wealth/
I did check out that blog but it didn't reference or focus on A to C's "4-6%(1)" like the email or "4.86%-6.69% average historical returns for loan grades A through C " like the footnote.  That's what I was pointing out.  HTH clarify what I was referencing.
Title: Re: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: Rob L on October 20, 2017, 04:50:23 PM
This like saying we really messed up the higher risk D,E,F and G loans so let's forget about them for marketing purposes. We really did GREAT (actually mediocre) for a subset of the loans we made.
Title: Re: Email: How LendingClub Notes May Help You Generate Long-Term Wealth
Post by: rawraw on October 21, 2017, 05:43:44 AM
This like saying we really messed up the higher risk D,E,F and G loans so let's forget about them for marketing purposes. We really did GREAT (actually mediocre) for a subset of the loans we made.

I see it much differently, largely due to my time on this forum. I think they realized attracting investors who are just chasing high returns is not very valuable. Banks long ago learned this lesson, but I think LendingClub is catching on.