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Topics - edward

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16
Interest Radar / IR Hype Blue-Red Bars
« on: June 13, 2013, 05:00:18 PM »
"Every time a user in Interest Radar clicks a loan to invest, the loan is promoted up in this page. If you are a believer of the crowd wisdom, take your pick from this list of highly-desired loans!"

Rev, this sentence is from your "Top Invested" section of IR. Just want to clarify:

(1) Does this sentence mean each time an IR user simply "clicks" on a loan to review it, or does it mean each time an IR user actually "buys" a loan that the "positive" blue IR Hype bar grows?

(2) What causes the "negative" red IR Hype bar to grow? It must be clicks and review without a purchase, I'm thinking....

By the way, I've started using the Auto-Sell and I'm loving it. It gives me a way to begin to alter my portfolio from 60 months to 36 months and try out different selling percentages above par for various grades. The automatic relisting sure is easier than manually!  Based on a strategy suggested by another forum member, I can list a substantial percentage of my notes, and if they sell great; if not, I just continue to receive the payments. 

17
http://www.avc.com/a_vc/2013/06/video-of-the-week-crowd-lending-at-lebweb.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AVc+(A+VC)

Panel discussion where all the entrepreneurs on the panel are Union Square Ventures (venture capitalist) portfolio companies that happened last week at LeWeb (London). The discussion concerned crowd (P2P) lending and the portfolio companies on the panel were Lending Club (US), Funding Circle (UK), and Auxmoney (Germany). It's 33 mins long.

* Differences between the platforms as to what purposes they lend for and size of loans
* The idea of transparancy by posting all historical loan information
* Regulation in each of the countries that currently exist and that Funding Circle is actively seeking regulation in the UK
* The ease for the borrower by applying online as a key component of growth
* The fact that banks are leveraged in their capital, whereas these platforms are 1:1 lender:borrower
* All three platforms have tripled their growth over the last year and expect to do so again over the next year
* Very roughly equal returns and amounts of defaults across the platforms
* The great potential for continuing growth in the P2P marketing, especially as loans marketed specifically to business increase, along with potential for collateralized loans
* I found the comment that the British government is actually financially involved in Funding Circle very interesting (I leave it to others with far more knowledge on this subject than I to comment on how that might work/benefit in the US, but some thoughts did come to mind.)

Disclaimer: A bit of British slang at the very start, using a word perhaps made most known in the US by Chef Gordon Ramsay. I hope not too risque for this forum.



19
General P2P Lending Discussion / Military Guide summary on P2P
« on: June 06, 2013, 09:31:37 PM »
http://the-military-guide.com/2013/06/06/more-problems-with-peer-to-peer-lending/

Third in a series about Lending Club and Prosper. Thanks to this LendAcademy forum not much new information in this article for me. Saw a few things I think are not quite accurate or are missing needed elaboration or clarification--so be sure to investigate for yourself. Haven't read the first 2 parts, but they are linked in the article. Extremely long posting, with this final part basically full of caution about P2P still being a new asset class with insufficient history to know how things will go in a changing economy or if major problems occur on either LC or Prosper platforms. I think all of the problems mentioned in the article have been discussed on this forum before. But there may be some information for investors new to P2P. Doesn't change my investment plans though.

20
Interest Radar / Is IR affected for some reason?
« on: June 06, 2013, 06:31:20 PM »
In the other sections of this forum there is a thread about LC notes not downloading at 2pm central time today (as well as some other occurrenses recently.) Looking at LC Browse Notes, I also noted, at least for the first time I've ever seen, all notes are at a minimum 51% funded. IR seems to be acting strangly with analysis and new strategies.  Another analysis site on this forum noted problems with the API feed. Rev, is IR being affected now?

21
General P2P Lending Discussion / Insight into Institutional Investors
« on: June 02, 2013, 04:45:58 PM »
http://www.finalternatives.com/node/23318

* Growth of institutional investors
* Potential for Whole Loans to be bundled and sold to other institutions
* Institutional investors include pension funds, endowments, offshore entities
* Information on the new team at Prosper
* P2P as an emerging asset class

22
Suggestions / Read all posts by user name?
« on: June 01, 2013, 10:21:16 PM »
I find a few users whose posts are particularly insightful, well written, and helpful. Is there a method to search for and read all the posts by user name?

23
http://www.npr.org/blogs/alltechconsidered/2013/05/10/182651552/peers-find-less-pressure-borrowing-from-each-other

Peers Find Less Pressure Borrowing From Each Other
by Wendy Kaufman
May 10, 2013 3:17 AM
Morning Edition [National Public Radio]


The Internet has managed to disrupt many industries, from publishing to music. So why not lending? Google is teaming up with the nation's largest peer-to-peer lender. The search and tech giant is investing $125 million in Lending Club, which gets borrowers and lenders together outside the conventional banking system. Google's move and the actions of other big players reflect a growing interest in peer-to-peer lending.

Chanda Lugere works for a bank, but when she wanted a loan to consolidate her credit card debt, which carried a high interest rate, the bank didn't have much to offer. She tried other banks, but even with her excellent credit score she got nowhere. So Lugere, who's in her 30s, went online seeking alternatives. She found Lending Club. "I went ahead and applied for the loan and I was able to get it funded in one week. And my rate was 6 percent. So it's half of what I had been paying. I thought it was a really great experience from beginning to end — really easy, you apply online and they gave you status updates."

Both Lending Club and its much smaller rival, a company called Prosper, have been around for several years. But lately things have really taken off at both companies.

"Last year we facilitated about $800 million in loans and we are planning on $2 billion this year," says Renaud Laplanche, the CEO of Lending Club.The system works like this: Investors put up the money to fund the loans; typically they'll have pieces of hundreds, even thousands of loans which are ranked according to risk. An investor's rate of return will vary accordingly. Laplanche says investors make a nice profit, but consumers still get lower rates than they would with a conventional lender because peer-to-peer lending operates like a marketplace. "It is a more direct funding process between the investors and the borrowers," he says. "There's no branch network. Everything happens online and it is really powered by technology and the Internet. And we use technology to lower cost."

In the industry's early days, most of the money for loans came from individual investors. But today — and this is a big change — large institutional investors like insurance companies and pension funds have put up a lot of the cash. "That is about one simple thing and it's called yield," says Peter Renton, who blogs and teaches courses about investing in peer-to-peer, or P2P, lending. In recent years, he says, institutional investors have had a hard time finding good fixed-income investments. But P2P lending can offer that. And with more institutional money flowing in, the lenders can make more loans. (Renton invests some of his own money in these P2P loans and when he directs investors to Lending Club and Prosper he gets referral fees.)

So, what about Google's investment? It's not putting money into loans but is making an investment in Lending Club itself. Neither company is saying exactly what it plans to do. But Renton and others speculate that Google sees synergies between Lending Club and Google Wallet, the company's virtual payment system. Imagine, for example, Google's own credit card or perhaps an instant big-ticket loan. "If you can hook up a loan institution who is really innovative that can get something happening quickly, there is the potential that Google Wallet could hook up with Lending Club and you could go buy a car on your cellphone," Renton says.

Indeed Lending Club's Laplanche has grand ambitions: He wants to make small-business loans, student loans, car loans, even mortgage loans. For him, the multitrillion-dollar market for consumer credit is a giant opportunity. "It's really one of the few large markets that has not been fully transformed by the Internet, so we believe we can become the mainstream alternative to the banking system," Laplanche says.


But David Schehr, who follows banking and investment services at the research firm Gartner, says P2P lenders won't be putting conventional banks out of business anytime soon. "They're growing, they're growing steadily, but realize they're growing off a very small base," he says. "Their total volume of lending might be what a small two- or three-branch community bank does in a year." And he says it can take a long time for consumers to change their behavior when it comes to banking.

Disclaimer: Bold text was selected by myself, it does not appear that way in the original article

24
General P2P Lending Discussion / Defaults and Late Payments
« on: May 23, 2013, 09:49:22 PM »
http://www.learnbonds.com/peer-to-peer-loan-defaults/

Regardless of the number of times top members of this forum have tried to make defaults and late payments seem less scary, this article finally said it in a way that I finally understood:  it's the very transparency of late payments and defaults that make them stand out in P2P. Same things occur in a mutual fund but because we don't get an announcement of each and every one, we just don't notice it. It's the overall performance of the funds that most of us watch, not each and every movement. Of course proper use of Folio can help for those seriously bad notes, but maybe now I won't freak each and every time one of my notes is late paying and I can feel better about my overall performance.

25
Investors - LC / Masters Project on "Determinants of Loan Default"
« on: May 22, 2013, 10:25:19 PM »
http://www.tumblr.com/tagged/peter%20klibowitz

Masters Project on "Determinants of Loan Default: A Closer Look at Peer-to-Peer Loans" (2011)

I noted the author's misconception about "public records," thinking they meant criminal records. I enjoyed it for portions I could understand about which factors tend to correlate with defaults but know nothing about the statistics.

Hope those with statistical background can help the rest of us better understand more about the significance of the conclusions he presents and your thoughts on the conclusions.

We'd all like to better understand how to reduce our defaults, and I thought this paper might add one more dimension to the great discussions on this forum.   


26
Interest Radar / New Accounts Opened attribute
« on: April 29, 2013, 01:50:25 PM »
I get worried when I see more than a few accounts opened within the last 24 months. What are other's thoughts about how to interpret what is a reasonable number? Is this just a gut reaction or is there statistical evidence?

27
Investors - LC / Business Lending Coming?
« on: April 29, 2013, 12:38:56 AM »
http://www.linkedin.com/jobs?trk=jobs_search_public_seo_page&jobId=5285963&viewJob=

Vice President, Small Business Credit

Job Description
 
Lending Club is looking to hire an innovative, hands-on credit strategy leader who can help drive Lending Club’s entry into the Small Business Lending market and create a low friction, high value product for small business customers. The initial focus will be on smaller companies within the Small Business segment.

The VP of Small Business Credit will report to the Chief Risk Officer, and to begin with will not have a team. He or she will be responsible for developing the credit strategy & policy for Lending Club’s Small Business products, as well as helping to drive the implementation of new operations and technology to support Small Business customers. The successful candidate with have a passion for launching new products (rather than optimizing existing ones), and a willingness to pitch in and take on a broad range of tasks to drive the business forward. He or she will be expected to work with existing policies and systems were applicable, to achieve objectives as efficiently as possible.

•Create Small Business credit policy and strategy
•Create Small Business collections policy
•Identify data and technology resources required to effectively underwrite small business
•Work with technology and credit operations teams to implement credit policy, application funnel, underwriting process and collections operations
•Contribute to strategy and implementation of new Small Business products
•Assist in negotiation of Small Business partnerships and technology solutions
•Other hands-on work as required to launch Small Business products
 
Desired Skills & Experience Requirements

•8+ years credit policy experience
•Proven expertise in small business credit policy, with experience across the customer lifecycle from modeling to underwriting to servicing 
•Understanding of small business banking/loan/credit market
• A hands-on, results-oriented approach to business with a ‘can-do’ attitude
•Detail oriented with strong analytical abilities and problem-solving skills
•Excellent oral and written communication, negotiation, and interpersonal skills with demonstrated ability to work effectively with business and technology leaders
•Must be self-directed, able to work independently, as well as work in a team-oriented and fast paced environment

Company Description
 
Lending Club utilizes technology and innovation to reduce the cost of traditional banking and offer borrowers better rates and investors better returns. Over $1.5 billion in personal loans have been issued through the Lending Club platform, which has more than doubled annual loan volume each year since launching in 2007.  The Company has been prominently recognized as a leader for its growth and innovation, including being named one of Forbes’ America’s Most Promising Companies in 2011 and 2012, a 2012 World Economic Forum Technology Pioneer, and one of The World’s 10 Most Innovative Companies in Finance by Fast Company in 2013. Lending Club is based in San Francisco, California. More information is available at: http://www.lendingclub.com.

Additional Information

Posted: April 23, 2013
Type: Full-time
Experience: Director
Functions: Finance 
Industries: Financial Services
Job ID: 5285963

28
Interest Radar / Vintage Filter
« on: April 26, 2013, 03:11:12 PM »
rev,
When working with the Vintage Issued attribute on the analysis page, the number of loans both of my main filters report remains the same until I move the filter down to 2012-09, at which point the number of loans finally begins to decrease. It's as if, something happened around that time such that no note before then is being counted. On the other hand, my "everything" filter, which has every possible attribute button checked, the number of loans counted changes for every month since 2008-10. Any thoughts?

29
Interest Radar / IR02/IR03 ?
« on: April 25, 2013, 01:15:25 PM »
rev,
Just interested to know-- was there ever an IR02 or IR03? The jump from 1-4 always seemed interesting to me.

30
Interest Radar / Evaluation of Equally Scored Loans
« on: April 19, 2013, 08:14:12 PM »
I frequently find multiple loans with very similiar IR01/IR04 scores. As I look at the loan details, I have my own set of attributes that I use to decide which loans to invest in. Which attributes do you find play the more important roles in lowering risk of default and/or increasing return, and what led you to that conclusion?

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