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Messages - apc3161

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Foliofn - LC / Re: Was this a Good Deal or What?
« on: September 14, 2017, 09:12:28 AM »
I stopped buying notes on folio with any markup. The frequency of pre-payments was just too high, especially since LC likes to poach their own borrowers with refinance offers.

Investors - LC / Re: 5 Key Things to Know About Investing at LendingClub
« on: August 20, 2017, 02:08:19 PM »
@SLCPaladin- Thanks for the excellent summary- after reading it, seems to be what most of us who have been here on the forums for a while already know. In a way it's also kind of sad because as others including myself have said, it seems like LC has their head in the sand and isn't doing anything to get better. Maybe if they did we'd stop selling and fleeing? Seems silence is SOP for LC, LR, and others.  ::)

I think it's because they have nothing good to say. They are in a tough position. They are losing money themselves. They are losing investors, but also can't raise rates or make lending more stringent because there is more competition than there use to be. Nobody is happy with how things are: The investors, lending club, etc. I guess the only people who are happy are those who default on their loans, and get away with it.

i still believe all the good loans are going to the banks first, and we're left with the scraps, which is why all individual investors are leaving.

I also feel this way. Do they release any data about which loans go to the banks and which loans go to the marketplace?

Investors - LC / Re: Another reason future years decline
« on: July 21, 2017, 10:11:20 PM »
I'll give an example to highlight the point:

Imagine there was an investment that returned 1% each day. But every single day, in the evening, they gave you all your money back. Each night, you had to decide whether or not you wanted to invest the following day.

You start off with $100. That night, they give you $101. You decide to re-invest and give them $101 for the next day. At the end of the next day, they hand you $102.01. This continues for 1 week, after which you have $107.21. They return this money to you. This has been great, you've been having an average rate of return of 1% per day. This night however, you decide you don't want to reinvest. You do this 1 week. So after 14 days, you still have $107.21. This means your average return over 14 days, more or less, dropped from 1% per day to 0.5% per day, solely because you stopped investing. This makes sense, if you don't invest your money, you won't make any returns, and your average rate of return decreases as time passes.

In the case of LC, it's similar to the above example, the only difference being that each night they give you back ~0.07% as opposed to 100%. If you don't re-invest what they give back to your, your average rate of return will decrease. However, the rate of return for the money that you still have invested, will remain the same.

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.

I might just be 1 anecdote, but the entire reason I use LR is for the secondary market access. I stopped investing in primary notes and I suppose now will just withdraw all cash as it comes in. I hope you are able to resolve these issues quickly.

I saw ad on skype the other day to invest with LC. The only reason I found it interesting was because previously all the ads I've seen for LC involved borrowing. I wonder if they are now running short of investors.

Investors - LC / Re: Understanding (or tying to) the process
« on: June 23, 2017, 10:07:51 PM »
Just sounds like it is listed in the "whole" loan market, not fractional.

Whats the process for determining whether a loan goes to the whole or fractional market?

Investors - LC / Re: June seems to be a horrible month for me
« on: June 18, 2017, 12:44:54 PM »
Looking at the most recent quarterly report, it is stated that individual investor capital actually increased by $30 million this past quarter. However, it seems everyone on here is slowly withdrawing their money. How are these two observations compatible?

Yeah, I have had a net loss over the last 9 months. All my account is doing is eroding all the "gains" booked from the first couple years.

I partially blame the early payoffs. About 40% of my notes have paid off early, depriving me of the interest I expected to earn over the loans' lifetimes from these good borrowers. In many cases, those borrowers paid off after the 12-month mark, meaning that Lending Club also charged me a 1% fee on my own outstanding principal.

Is Lending Club giving the good borrowers a 2nd loan and are a significant percentage of these borrowers using it to pay off their first ones? I believe they are. Thank you Lending Club for sticking me as the investor in the first loans with the resulting losses.

My thoughts exactly. I think LC should give you back the "origination fee" when they refinance a bowerer. Basically, they are just leaving you with non-paying loans. Quite frustrating.

Investors - LC / Re: Imagine you were the CEO of Lending Club
« on: May 14, 2017, 08:28:55 AM »
Fred93. Interestingly enough, the most recent quarterly report from LC showed that individual investors funded $297 million this quarter vs. $263 million last quarter. I would have thought every one was slowly withdrawing their money given the poor returns, but that doesn't seem to be the case.

Don't make the mistake of lowering your lending standards. Just take your money elsewhere.

Investors - LC / Re: Worst Month Yet
« on: March 03, 2017, 10:28:37 AM »
Looking at LC most recent quarter statement (see attached), it's clear retail investors have been pulling out to a large extent (rightfully so, we just don't feel like a priority at all). We are now a small percentage of their funding. Either LC will take large steps to retain us by addressing all of our concerns (such actions will be obvious), or they will simply write us off as not worth the trouble, address none of our concerns, and be content with us leaving and focus more on banks, hedge funds, etc.

Investors - LC / Re: Worst Month Yet
« on: March 03, 2017, 09:45:08 AM »
I got crushed in February, my worst month since I started more than 3 years ago. That makes two months in a row with personal record-setting net losses and judging by the amount of loans I still have going into grace, late, default and early payoff, It's likely I could be booking a rather big net loss in 2017. It hurts to think about erasing gains from prior years.

I stopped reinvesting in June of last year and it has been painful ever since, monthly net losses in 5 of the last 8 months, with charge-offs accelerating each month and interest dropping fast.

I know I keep harping on this but more than 1,100 of my notes to date have paid off in full early. That's a lot of borrowers whose interest I needed each month to offset this nagging problem of defaults. I don't think it's fair that LC brushes over this pre-payment phenomenon. We know they give second loans to borrowers and we know that some percentage of borrowers use their second loans to pay off their first ones. As someone who is probably going to lose more than $1,000 this year with LC, I think it's long overdue that LC eliminates the 1% penalty assessed to investors on early pre-payments and that LC discloses everything it knows about pre-payments and allow us to decide how to act on that data.

I do not appreciate that LC refers to retail investors as resilient in an earnings call, while going on to talk about how banks are basically their only priority.

I want to know everything they know about early payoffs. I want the 1% penalty eliminated. I don't want to hear about how resilient I am while looking down the road at losses while they pat themselves on the back for transparency and celebrate how many banks they've brought on board.

This was also my worst month. Sadly, the only thing you can do is stop investing money there, withdraw, and explain to them what they need to do in order to get your money brought back into LC.

Investors - LC / Re: a view of LC's deteriorating investor returns
« on: February 22, 2017, 02:52:04 PM »
Not sure this is correct, but think "LC Advisors" is the "Managed Accounts" shown in the chart below from LC's recent 2016 Q4 presentation.
Maybe "Managed Accounts" is more than just "LC Advisors"; I dunno ...
Either way "Managed Accounts" provided 43% of the funding for loans last quarter. Way more than any other funding source.

LC Advisors is one manager among many.  There are a lot of 3rd party money managers who manage money for others by investing it in LC loans.  This category includes all of them.

Including for example Peer Cube, Lending Robot, BlueVestment, etc. and all the financial planning firms that manage accounts for individual clients?

I don't think so. Those services simply login and manipulate your account (you give them permission to do this).

Investors - LC / Re: a view of LC's deteriorating investor returns
« on: February 22, 2017, 11:21:08 AM »
Aside: LC's Broad Based Credit fund, which is essentially filterless, ie "broad based", is now earning 0%.  They have fallen more than I have.

Where do you find this data?

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