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Messages - Emmanuel

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I understand that the suspension of trading on LC's secondary market can be frustrating.
Please be assured that we spent literally months developing this, and the decision to suspend it wasn't taken lightly.

Unfortunately, at this stage, even constantly re-submitting orders with tens of servers, the service still did not perform as we'd like.
Hopefully in the future submitting orders will be cheaper/faster/more efficient and we'll be able to resume this feature, but we can't commit on a date for the moment being.

As a reminder, LendingRobot never charged anything for selling LC notes.

My chart shows almost the opposite of yours: my Lending Club returns have been much more volatile month to month. My accounts were the same size until around mid-2016, and since then I've been adding cash only to Prosper, such that it's now about 2x LC.

If your Prosper account is bigger, it's normal it's less volatile.

Investors - LC / Re: NAR doesn't make sense
« on: March 09, 2017, 07:18:41 PM »
Here's a blog post we wrote a while ago to (try to) explain NAR:

Investors - LC / Re: a view of LC's deteriorating investor returns
« on: February 21, 2017, 11:11:50 AM »
The correct strategy should have been this: You have your filters (with their known returns), and you stick with them. If lending standards got worse and/or interest rates were lowered, this would have resulted in a lot of unused cash in your account.

Indeed. If your algorithms says 'don't go out when it rains', you stay dry, whatever the weather outside. At least LC still provides investors with enough information so they can judge if the interest rate they decided for a given loan makes it worth the risk.

We've done some database maintenance that brought the website to a halt.
Sorry for that, everything is back to normal now.

Investors - LC / Re: Back Testing Traded Notes
« on: October 31, 2016, 11:58:53 AM »
Still, you could automate the selling of loans going bad.

Investors - LC / Re: new to investing in LC
« on: October 26, 2016, 02:14:26 PM »
There is no need to spread yourself across the grades.  Decide where in the risk spectrum you want to invest, and concentrate there.

I respectfully disagree. Because 2 loans of different grades may be less correlated than 2 loans of the same grade, there is some benefit is mixing grades. We did some analysis that one can read here:

Investors - LC / Re: Beginner Questions
« on: October 06, 2016, 02:01:48 PM »
In reference to the unlikely event that Lending Club will fail and in turn their backup plan for servicing the loans afterwards fails as well.
I don't understand the too big to fail tie in.

I you owe $1M to your bank, you have a problem. If you owe $100M to your bank, your bank has a problem.

If your bank owes $1B to the American people, they have a problem. If you bank owes $100B to the American people, then the Government has a problem.

Investors - LC / Re: Beginner Questions
« on: October 04, 2016, 12:23:16 PM »
It wasn't updated since a while, but you may want to check the very informative

Where do you find the option to do "Active Rebalancing"?


On the LendingRobot website, go to the Strategy page of your Lending Club account. In fully automated mode, below the conservative vs aggressive slider, and under a "Adaptive Portfolio Rebalancing" section header you have 2 checkboxes: Automatically buy notes on the secondary market as well, and Automatically put notes for sale to increase potential return.

Introductions / Re: Hello and Interest free loans
« on: September 12, 2016, 03:17:31 PM »
Interesting idea.

However, be aware that many businesses tried to articulate lending between friends, but all had to pivot or close doors...
If the people know each other enough (e.g. close family members), they don't need a marketplace. If they're not close enough, up to Anil's point, they don't want to tell they're in financial distress.

On top of that, lending money to 'friends' doesn't work, because you can't force getting your money back without tainting the relationship. That's why lending is best when with strangers. One could go as far as considering that's why we pay intermediaries like banks: so it's not 'our fault' if they're ruthless in getting the money back.


Since the majority (almost all of mine) of 31-120 lates go charged off I thought this would be a way of "maximizing profits". If loan is extended and borrower still did not pay that is no skin off my neck...I would have lost the entire balance anyway. BUT...if the relief given to the borrower in the form of a lower monthly payment allows him/her to continue paying...even if it is only one or so more months then I am I not?

How many people do you think will pay on time once they find out how generous you are when they don't?


You don't have to be generous. Simply extend the term, even increase the rate.

In case of recession, revolving loans have lower defaults than installment loans. People stop paying back, but the debt it not forfeited. Far from it: it still accrues interest.

Investors - LC / Re: LC should offer interest on the cash account
« on: August 22, 2016, 05:25:45 PM »

I know, it's supposed to be peer-to-peer lending, not a bank. But why not? Why not turn the cash account into a high-interest savings account. Pay us something like 0.75% to 1% on our cash balances. I'm sure that LC can find something to do with the money, and when we use it to buy a note they see the cash transfer coming a few days in advance--so they could easily manage their investments.

Why would I want this? Here's why:

I"m continually debating whether to transfer another $10k to lending club in my IRA. I have had good returns on the $7k I have invested at LC now, and I'd like to add to my investment. BUT, I just can't see how I can get $10k invested in $25 notes in any reasonable amount of time given the paltry number of notes being listed.

So I don't transfer my money, even though LC is offering me a $100 bonus if I do. I just can't see how I would get my money invested in any reasonable amount of time.

So how does paying interest on cash balances help? Well, at least I'd be getting SOMETHING for my money while I wait to invest it.

If they don't want to pay cash balances on the cash account, they could offer a savings account on the side, and move cash in and out of it between the "checking" type main account balance. I don't know.

First, investing should not take long. We see clients deploying more than $100K in less than a week (and still being picky). Let's say there are 200 loans issued per day, you could invest $14,000 by putting only $50 in the top 20% of them.

Second, if you really want to take it slow, why not leaving most of your cash in a bank account, with a recurring transfer to LC?

Investors - LC / Re: What is your Portfolio Analysis Tool of choice?
« on: August 04, 2016, 08:43:25 PM »

Thanks for the kind words about LendingRobot! What kind of data analysis and reporting would you like?

Investors - LC / Re: how fast do most-desired new loans fill?
« on: August 04, 2016, 02:44:08 PM »
You can see the real-time funding of the loans in the latest LC batch on

For instance, on the 10 AM loans release, out of 29 loans, only 7 are still available...

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