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Messages - Zach

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16
Investors - P / Re: Prosper ID Lookup
« on: July 08, 2016, 07:42:15 PM »
Unfortunately, what you are trying to do is not possible with the publically available Prosper data. The listing and loan connection was severed for the historic data as part of the data curtailment.

You can only match against the loans/notes you invested in. Use the mylistings end point.

LC's public data does give you this flexibility but Prosper's public data does not. Try contacting Prosper capital markets team. They'll be able to guide you better.

Sudeep is correct. Prosper uses both a listing ID number and a loan ID number to obfuscate the connection between the initial borrower credit data and the performance data. This is done in an effort to protect their credit model and underwriting. The NSR Platform has this data in aggregated form as part of a data sharing agreement with Prosper. While you can't look up individual listings or get results for queries with fewer than 200 results, you may be able to accomplish what you're looking for with our Strategy Builder tool here https://nsrplatform.com/app/#!/stats/prosper//

17
It's interesting that the number of inquiries in last 6 months was zero for all four loans

It's not uncommon for hard credit inquiries to take up to 30 days to reflect on a credit report. Additionally, we don't know to what extent (if at all) there may have been tampering with data beyond the yes/no approval of the loans.

18
This is nonsense.  You have no evidence.  There is no logic to connect RL to these loans.

From my analysis, it's clear to me that these loans were taken out by the same borrower. As far as I'm aware, Lending Club's credit policy has only ever permitted a maximum of two concurrent loans to one borrower at any given time - and only after at least 6 on-time payments on the first loan. Here we see 4 loans issued all within a few days. These sets of loans stood out pretty easily by looking at a frequency chart by the borrower's earliest credit line.

If nothing else, these loans did not adhere to their own underwriting policies.

19
Investors - LC / NSR Invest blog post - the improperly issued loans
« on: June 29, 2016, 04:33:21 PM »
Just wanted to share our latest blog post on the recent Lending Club news and looking at some of the 32 loans issued to Renaud and his family in 2009.

https://www.nsrinvest.com/i-think-i-found-the-loan-files/

20
Investors - LC / Re: New Loans of the E F and G Grades
« on: June 25, 2016, 06:57:22 PM »
Lots of these grades available on Folio. Pretty much all of my activity as of late has been there. Many good deals to be found. And since they are not "new", a bit less chance of straight roller, one and done, etc.
Have not looked today, but recently I have thought the really good deals, -3+ have really dried up.  Should say except for notes that I have a tough time pulling the trigger on.  I just can not get myself to buy notes who have been 16+ days late.  IGP can not be recent either.  I see all the time notes that are IGP every single month and pay on the same exact day and no doubt are perfectly good, but if they do not mind getting calls every month, something is wrong with them not moving the payments back. 
Maybe it is an irrational fear, but I would rather snag a note -1.5 with solid payment history with not an adverse YTM, then to take chances on those notes with a -3 or -5 discount. 
Am I wrong?

In my case, I'm working more towards what I see and want on Folio- as stands right now my tools make purchases there based on the filters I have set, followed afterwards by new loans being issued. For the last few weeks there was never money left over to buy new loans- it was all consumed by Folio purchases. And this is on 2 accounts that each generate $200-700 a day of payment activity.

Today is the first day a new loan was purchased- and that was by Lending Robot. I also use Interest Radar with some other filters- it tends to fire only after LR has finished and if there is still money available. It hasn't made any purchases in weeks. I consider this to be an excellent position to be in as my earlier days used to have periods of time where $1k or more was waiting to be loaned out, or it was waiting in committed cash for loans to fund, followed by the usual return because the loan failed a check, etc.

Others here talk about being fully invested and having minimal cash waiting. Both my accounts currently have $0 waiting in commited cash, and .45 available in one account, the other has $4.56. Seeing that makes me very happy.  8)
With that amount daily to invest, I see why you are automated on FOLIO.  I would/could never do that though.  No doubt that one of your filters is up/flat for FICO.  I have sent requests both to NSR and Anil at PC about adding a feature that will allow to filter recent  FICO.  I see notes all the time on FOLIO that has an up FICO overall, but a recent bad downturn.  A note can have 130 upswing and look great.  But if it has a recent 120 downswing, you would never see it on auto. 
If you are buying up to 40 notes a day, doubt an oddity like that would even be much of a factor to be concerned with.

While not 100% accurate due to delays in reporting of FICO updates by LC, you can create a formula on NSR Platform right now using the last reported FICO score and the origination FICO score. It would be "Last FICO Range Low" - "FICO Range Low". Then, put in a range of values to filter for the difference you want. For example, putting in 50-60, would return (for the most part) only notes with 50-60 point increases.

If you're buying manually from the search results, this works for now since you can easily identify notes with more volatile increases or decreases in FICO.

For just getting the value of the current FICO (more accurate) as reported by the Folio listing data, there is a criteria option in the Secondary Market filters accordion. You can also create a filter with both the origination FICO and the Secondary Market Last FICO to be a bit more precise.


21
Investors - LC / Re: Using Automated Investing - Advice, Please
« on: January 28, 2016, 11:31:23 PM »
Full disclosure: I work for NSR Invest - a subsidiary of Cardinal Rose Group, which also has an ownership interest in Lend Academy Media and the LendIt Conference.

At NSR Invest, we've done serious analysis on both of the questions you mentioned above.

Regarding an ideal number of notes to achieve significant diversification, we've identified a target of 1,000 individual notes as being ideal for our client portfolios based on repeated sampling simulations with C-E grade Lending Club loans. More notes would be of benefit in tightening the potential range of returns an account may experience, but it becomes difficult to access higher-quality notes which are typically purchased within minutes or even seconds of becoming available. If you seek loans that target a higher rate of return than purchasing all available loans, it is difficult to find enough volume of loans which meet selective criteria - without having significant cash drag.

While many credit variables impact loan performance, we typically find that 60-month loans have a strong risk-premium tied to their stated interest rate that more than compensates for the added risk of the longer duration.

You may wish to look at back-tested results of 36 versus 60-month term loans on https://www.nsrplatform.com/#!/stats/lendingclub

We also offer Fully Managed accounts where we handle all the loan selection for you. Check out NSRInvest.com if that sounds like your cup of tea.

The above information is not to be considered investment advice and is based on our observations of historical data.

22
Very interesting perspective. Is the reason you don't consider LC's credit grades E-G because there isn't enough sample data or some other reason?

23
Investing - General (not P2P) / Re: Section 1256 Tax Reporting
« on: March 02, 2015, 04:12:27 PM »
Fidelity is going to have their legal team review this situation. The IRS publication 550 provides a list of securities that qualify under the 1256 guidelines, but does not specify that a qualifying security has to meet more than one requirement. While the contracts are not settled in cash, they qualify under the non-equity options section as Fred93 pointed out.

Hopefully some good news soon :)

24
Investing - General (not P2P) / Re: Section 1256 Tax Reporting
« on: March 02, 2015, 03:54:31 PM »
There are also many google links discussing kitty cat videos, how many angels fit on the head of a pin, and other obscurata.   Let them argue among themselves.

Sure, but the people questioning whether SPY options qualify as 1256 have more qualifications than I do. I'd trust well known CPAs and national brokerages before a random guy on a message board.

Quote

Most auditors want to get in and get out and not have a big hassle, review by their superiors, etc.  Therefore it is very unlikely that they're gonna go after some little guy in a situation where the the regs are unclear.  If somebody at IRS cares about this, it would be so much easier to simply issue a revised regulation that makes it more explicit.

They aren't going to put you in jail over some situation where the IRS pubs clearly say that S&P 500 index options are 1256 and you did what any ordinary human would believe was correct. 

Yes, that is essentially what I said.

I don't know how much the OP stands to gain from going 1256 route. I don't know how sensitive he is to dealing with the IRS. If he only stands to gain a couple of bucks, I can't imagine that even a remote risk of any involvement with the IRS would be worth it. So it is by no means a no-brainer to advise OP to go 1256.

We're talking about ~$1,500 in tax, so I'm probably going to report it under 1256 and be willing to answer to the IRS should there be an issue.

25
Investing - General (not P2P) / Re: Section 1256 Tax Reporting
« on: March 01, 2015, 10:55:15 PM »
SPY options are clearly section 1256.  See IRS pub 550 http://www.irs.gov/pub/irs-pdf/p550.pdf

Page 39 clearly lists "nonequity options" as 1256 contracts.  Later, "nonequity option" is defined.

Quote
Nonequity option.
This is any listed option (defined later) that is not an equity option.  Nonequity options include debt options, commodity futures options, currency options, and broad-based stock index options. 

A broad-based stock index is based on the value of a group of diversified stocks or securities (such as the Standard and Poor's 500 index).

Could they have chosen a more helpful example?

It is things like this that make it increasingly clear that we need some income tax reform...

There is absolutely no reason that this issue should be so up in the air  ???

26
Investing - General (not P2P) / Re: Section 1256 Tax Reporting
« on: March 01, 2015, 08:53:07 PM »
If Fidelity isn't calling them out as 1256, you are adding audit risk to file as 1256. You might have an argument that they are 1256 (to my knowledge, whether SPY options are 1256 or not is not yet ruled on by the IRS). I would look at the risk reward here. I.E., is the benefit of filing as 1256 worth the potential IRS nightmare?

That is very true...I wonder what my odds are of getting Fidelity to adjust my 1099 to account for the 60/40 rule?  ;)

27
Investing - General (not P2P) / Section 1256 Tax Reporting
« on: March 01, 2015, 07:10:11 PM »
Since I know we have more than a few experienced investors/traders on the forum, I thought I would put this question out there to see if anyone has any experience in this realm.

In 2014, I traded a significant number of SPY ETF options contracts. From my understanding, I can report the gains earned as 60% long-term gains, 40% short-term gains under IRS Section 1256.

However, my broker, Fidelity, doesn't classify the index options as such. How do I properly report the 1256 gains while still adhering to the short-term gains my broker is reporting in full?

I read this TurboTax thread for some insight - which was helpful, but still doesn't make clear what you do in this situation.

https://ttlc.intuit.com/questions/2314260-options-on-index-fund-etfs-qqq-spy-1256-contract-treatment

Any prior experience would be appreciated  :)

28
BTW you may want to request a subforum for your product.
All set :D

30
Investing - General (not P2P) / Re: Robinhood?
« on: September 12, 2014, 03:06:38 PM »
Highly recommend IBKR for all your discount brokerage needs, if you are an active investor.  (call it, 10+ individual security trades a year). 

Not only do they really shine on equities - but you can do options & bonds cheaply as well.  Nobody else offers the kinds of deals they do.  Very well established already; and very large

For stock/ETF trades they're extremely competitive, but for larger options positions they lack far behind OptionsHouse (unless you're only trading a few contracts)

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