Messages

1

Investors - LC / 0x Project future of asset trading?

« on: December 09, 2017, 02:53:49 AM »

Has anyone look at the 0x (https://0xproject.com/) would be interesting if LendingClub came up with a way to trade their notes on a token market instead of folioFN which is horrendous.

2

Investors - LC / IEG Holdings Tender Offer?

« on: August 02, 2017, 04:47:31 AM »

I got a notice today from my brokerage saying that a company called IEG Holdings was tendering an offer to exchange 4 shares of IEG stock per share of LC for up to ~10% of the outstanding LC shares.

IEG runs a scummy looking business called "Mr. Amazing Loans".  Is this for real because it looks like the worst deal ever who in their right mind would agree to it?

3

Investors - LC / Re: How much is too much?

« on: December 17, 2016, 09:59:23 PM »

I am still relatively new to Lending Club.  I have about 120 notes right now. I have some more money coming at the beginning of the year I need to invest.  I was just wondering how much is too much?

I agree with the others that a lot of it revolves around your personnel financial situation.  Don't put all your eggs in the LendingClub basket.

That being said you should also be aware that investing too little or having too much invested in a single loan relative to your total LC portfoilio can increase your risk of bad or even negative returns.

You should check out the LC stats page that shows investor returns by number of notes...

https://www.lendingclub.com/info/statistics-performance.action

Assuming your are only investing $25 in each note you probably have enough diversity at 120 notes to not run into problems but the more notes you have the better chance you will get a return closer to the expected average.

4

Investors - LC / Re: Marcus by Goldman Sachs

« on: October 15, 2016, 10:50:32 PM »

I've heard about some private mortgage lending stuff, which would be the closest thing to becoming a landlord holding rental properties. Are those private forms of lending risky? Someone on another blog was pointing me to something like this:
http://www.crowddd.com/investments
(a form of croud-sourcing but focusing on real estate)? Sorry if I'm hijacking this thread - but I see all of this in connection to the main topic somehow - what alternate forms of co-participating lending (investment-grade) are available there?

I think in general most of the P2P real estate stuff is much more risky than LC.  Mostly because most of the companies in the space are still young and unproven.  I put a small amount of money in https://fundrise.com/and it has been giving 11% annualized returns but the risk is much higher IMO.

5

Investors - LC / Re: Marcus by Goldman Sachs

« on: October 15, 2016, 10:31:43 PM »

Though not mentioned yet, I expect the Marcus loans to be securitized by GS in  the future.

That was my first though as to where this was probably heading when I read about this.  Especially in light of the news that LC was trying to make a secuitized offering of their loans before the whole scandal unfolded.

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Investors - LC / Re: Marcus by Goldman Sachs

« on: October 15, 2016, 10:26:11 PM »

Nothing is going to give you a yearly income that's in that 7-10% range.

You can probably get there with rental property if you are willing to put in the work of being a landlord.  Definitely not as passive as LC though.

7

Investors - LC / Re: liquidation strategy on folio

« on: May 27, 2016, 06:43:57 PM »

It used to be that there were a lot of states that could only buy notes on Folio in which case it made sense that notes sold for a mark-up since there was significant demand that couldn't be satisfied by LC directly.  Currently though there are only four states that can't invest in LC loans directly (PA, NC, NM, and AK).  There are really only two reasons I can think of that you would want to buy a note on Folio instead of directly from LC. One you are getting a nice discount or two you can't buy any other way.

The only time I buy from Folio is when I can get nice loans at a 3-5% discount.

http://blog.lendingclub.com/is-lending-club-available-in-my-state/

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Investors - LC / Re: Can someone explain this to me??

« on: May 20, 2016, 07:26:31 PM »

So, in other words, you don't deny it?

9

Investors - LC / Re: Yet another interesting article on recent events

« on: May 19, 2016, 08:00:25 PM »

The article talks about people losing money on LC but fails to mention once that all these losses are in the stock price not in the actual loans.

10

Investors - LC / Re: Can someone explain this to me??

« on: May 18, 2016, 11:12:49 PM »

Remember me?

While I'm sure today's controversy is great news for your short position I don't see it as validating any of the theories you were pedaling here about investors losing money over all.

I agree.  The good thing about vocal HFs is you can not only tell if their positions worked, but if the positions worked for the right reasons.  If I was the HF guy in this thread, I'd cover since his other points didn't seem to be well thought out.   But talk about the worst possible thing for already terrible sentiment.  Hearing these HFs talk about this all day makes me want to start doing the work on LC stock, because the short trade seems way too crowded.  But I also have aversion to investing in tech companies lol

If I were betting my money is on HFGuy had insider information about the funny business with the changed application dates and in order to provide legal cover for his short he came here to pedal his theories about investor profitability.

11

Investors - LC / Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse

« on: May 09, 2016, 05:19:41 PM »

What I don't get is why fudge the numbers for such a small amount? $3mn in loans is nothing to LC. There has to be more to the story. Unfortunately, I don't think the "more" will be good news.

EXACTLY that's the smoke!  The fire is that RL and Mack were both invested in a fund that bought LC Loans and DID NOT disclose it..wow wow wow

Why is that the fire?  I mean it isn't particularly ethical to not disclose that but on the other hand would anyone be surprised to find Bill Gates used Windows?

12

Investors - LC / Re: Can someone explain this to me??

« on: May 09, 2016, 03:38:10 PM »

Remember me?

While I'm sure today's controversy is great news for your short position I don't see it as validating any of the theories you were pedaling here about investors losing money over all.

13

Investors - LC / Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse

« on: May 09, 2016, 03:22:56 PM »

Trying to understand what happened here ... details seem sparse.

Here is an article from the WSJ

http://www.wsj.com/articles/lendingclub-ceo-resigns-over-sales-review-1462795070

"The board found that some people at the company knew the loans didn’t meet the investor’s criteria and that the application date on $3 million of those loans had been altered to make them comply."

Note it was the application dates that were altered _not_ the origination date.  Given how LC continuously monitors credit scores I wonder if perhaps someone looked at the loans in question and saw that if you looked back or forward a bit the FICO met the investors criteria so they fudged the application date.

14

Investors - LC / Re: Auto Invest Allocations Conflicting with Filter

« on: April 12, 2016, 11:24:17 PM »

Does LC allow you to save allocations that sum to more than 100%?  If so, then you could set all grades to 100%.  I've never tried it.

No, it has to sum to 100% I tried that already.

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Investors - LC / Auto Invest Allocations Conflicting with Filter

« on: April 12, 2016, 09:19:25 PM »

Is there any way to use auto invest with just a filter and not specify a grade allocation?  I have a problem where there are loans that fit my filter but they would put the portfolio outside of the allocation % I have set for the various loan grades so instead it lets money build up in the account.  Is there any way to tell it to just buy whatever fits the filter and disregard the grade % so I don't end up with a bunch of cash sitting there?