Messages

1

Investors - LC / Re: Where, oh where, have all the loans gone?

« on: April 10, 2015, 03:13:47 PM »

As of this minute, there are only A and B loans available. None, nota, nil C, D, E, F, G loans.

i picked some up some c,d, and e's today.... imop there are some real "bad" loans being funded in 10 minutes...its like investors will take anything...not good

I think some of the "big players" in our retail pool are just going with the statistical odd and relying on LendingClub's credit model. Not everyone is after 10+% for some big accounts a stead 4,5, or 6% is great by comparison.

Of course they do and it is rational for everybody to go with their model.

For small visitor it pays off more to work and make the more instead of doing some crazy modelling that might work or will never work. For big investors it does not pay off to wait years until all millions are funded with reasonable diversifikation.

If you look at yield after 3 or 5 years, they ROI narrows within 2% interval or less with many notes.

So yeah, everyone can pick up the one great FG note and be paid in full, so his revenue will be 25%+, but why on earth why would I do this, when most of my money are still unused? My bank charges me -0.2%. So the only rational strategy is to buy everything. Time is money - for everyone.

I think many people are just obsessed with kind of p2plending-porn. Chasing the highest revenue, while completely abandoning the wider picture which is maximalising the overall revenue even outside of LC. So they sacrifice their time and potencial revenue from money outside of lc, just to achieve best result at lc. The best result is btw very questionable, because even what worked during last years maybe will not work in future, because the segment that was good goes to retirement or etc. Billion things can change in real economy.

The only value to distinguish the grades is the info we never get; like male/female, race, religion... But without some special information it is just time lost. Most strategies are worthless and to pick up the right one is not worth of the time. The algo of lending club is learning as well.

2

Investors - LC / Re: This one is surprising (fraudulent?)

« on: April 09, 2015, 09:00:07 PM »

https://www.lendingclub.com/account/loanPerf.action?loan_id=38351933&order_id=51362377&note_id=65796892

This guy's FICO went up originally as well.

He never paid and directly: Borrower filed for Chapter 7 Bankruptcy

I like him 

laffo, how is that legal

I do not know. I am not from the USA. Glad it is probably not normal.

3

Investors - LC / Re: This one is surprising (fraudulent?)

« on: April 09, 2015, 08:51:09 PM »

Why invested in this loan? Too many red flags:
* Open Credit lines = 6 < 8
* Open Credit Lines << Total Credit lines
* Total Credit Line Limit = [Revolving Credit Balance] / [Revolving Credit Utilization] is too low.
* Amount Requested > Total Credit Line Limit
* Delinquencies in last 2 years = 3.
* DTI =29.93%.
* Gross Income = $2667.

I have other criteria simply. Yes DTI is 30 max, so it was close. But every high grade note has some catch. Honestly I do not think I will be able to get something much better than average and average is just fine. I set up API and let it invest. It is beyond my imagination how can I make significantly better grades than lc with my limited information.

When I look at my stats
Adjusted Net Annualized Return3 ?:   12.48%
Weighted Average Interest Rate:   14.77%
9K notes

and I restrict Understanding Your Returns page to 500+ notes and no note larger than 0.5% (which is my case) => after 30 months everyone is in 6.5% - 9% area. Even if all the strategies would be significant, it would take me too much time to go through them all. On the top I have a lot of money and it would take me too much time to invest them all (=much lower ROI) or I would have to go for low diversification, which I really hate, because nondiversifikation is killer #1.

The only time/money that make sense to invest extra to lending club IMO is the job of API programmer, so the computer will grab all the new notes fast.

4

Investors - LC / Re: Where, oh where, have all the loans gone?

« on: April 09, 2015, 08:40:48 PM »

Actually there are much more loans than few days ago.

I am buying only CDEFG via API. Funding 15-20K /day, used to be half or even less.

5

Investors - LC / Re: Insuring loans.

« on: April 07, 2015, 05:31:10 PM »

It is silly to think about 1K "investment" as about investment. It makes 50 usd per year. It is few hours of work even for well underpaid ppl. There is no sense to invest small amounts like 1K usd to p2p lending.

Also even when there indeed is small probability of loss with 1K investment even with A grades, it would be very small loss that can be covered with work at McDonald very fast and it is not worth of dealing with some insurance company.

It is not a good business to insure against minimal loses.

6

Investors - LC / Re: This one is surprising (fraudulent?)

« on: April 07, 2015, 12:06:39 AM »

https://www.lendingclub.com/account/loanPerf.action?loan_id=38351933&order_id=51362377&note_id=65796892

This guy's FICO went up originally as well.

He never paid and directly: Borrower filed for Chapter 7 Bankruptcy

I like him 

7

Investors - LC / Re: Diversification question - Too many notes?

« on: April 06, 2015, 11:57:44 PM »

There is no problem to invest 25/note, if you use API.

I have most notes 25-100 with 500k+ bankroll, it does not take so long if doing on auto. But if you have to do it manually I would stick with much higher notes. Not only that time is money, but it is also quite difficult to get the right loans with bare hands.