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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 21, 2020, 10:47:56 AM »
Right now LC makes a much higher margin on institutional investments than they do on retail investments.  Years ago they set the fees for the retail platform too low.  They actually charge the institutional customers more!  [They charge institutional customers with a different kind of fee, so you have to do some work to compare the two.]

If you have the time could you expand a bit on this. I for one was not aware and it sounds like an interesting story.
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Fred93 on February 21, 2020, 02:11:14 AM »
They still get to decide which loans they'll hold, and which ones they'll offer up to others.

Sanborn from the earnings call...
Quote
And as Tom mentioned, our thinking out of the gate subject to regulatory approval is really the only hold 10% on our balance sheet. That 10% will be randomly allocated as part of our scale program. So we won't be kind of competing in that way or picking loans. So, we think this will be viewed as a real positive.

What I expect them to do is set criteria, something like "grade A", ie loans that would be appropriate on a bank balance sheet, and then choose randomly among the loans meeting that criteria.  It is likely that some customers will complain, but likely the complainers will be banks who are after all competitors.


Quote
This is only a positive development for the stockholders IMO.

Yes.  That's surely what it was meant to be.


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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by jrl on February 20, 2020, 09:12:40 PM »
Fred, I think they meant institutional debt providers, not purchasers of loans
 
Without a portfolio of loans, LendingClub will have extreme volatility of earnings. Balance sheet interest income will mitigate that issue a bit

All the talk over the years about "skin in the game" regarding their underwriting. Now they will have it!

They still get to decide which loans they'll hold, and which ones they'll offer up to others.

This is only a positive development for the stockholders IMO.
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Foliofn - LC / Re: folio loan model prices
« Last post by rawraw on February 20, 2020, 10:34:55 AM »
If  you want to trade on it, you'll need to do it more than once a day. Mispriced notes are bought quite quickly
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 20, 2020, 08:57:01 AM »
Fred, I think they meant institutional debt providers, not purchasers of loans
 
Without a portfolio of loans, LendingClub will have extreme volatility of earnings. Balance sheet interest income will mitigate that issue a bit

All the talk over the years about "skin in the game" regarding their underwriting. Now they will have it!
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 20, 2020, 08:53:53 AM »
From the earnings call...
Quote
our largest shareholder Shanda has agreed to exchange all of its voting common stock for non-voting stock. As part of the exchange, Shanda will receive payment of $50.2 million. While significant, this payment unlocks substantial shareholder value and clears the path for the acquisition of Radius.

Just as I suspected.  Shanda got something in return for giving up voting rights.  $50.2 Million is not a bad fee, eh?

Shanda's (Mr. Chen's) holdings on 12/31/2019 was  22.20%   (Shares 19,562,881   Value $229,276,965)
The fee per share is $50M / 19.5M shares =  $2.57 per share. Not bad at all.

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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 20, 2020, 08:31:01 AM »
I saw that.  At least they're probably secured loans.

There's an error on that slide.  See where it says "(in millions)"?  Those aren't millions.  Must actually be thousands.

$1,077,335 (millions) would be 1 Trillion dollars worth of yachts, which would be one hellofa lotta yachts.

LOL! yeah I missed it!
Probably secured and super prime borrowers.
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by rawraw on February 20, 2020, 08:06:44 AM »
Fred, I think they meant institutional debt providers, not purchasers of loans
 
Without a portfolio of loans, LendingClub will have extreme volatility of earnings. Balance sheet interest income will mitigate that issue a bit
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Fred93 on February 19, 2020, 10:00:36 PM »
I saw that.  At least they're probably secured loans.

There's an error on that slide.  See where it says "(in millions)"?  Those aren't millions.  Must actually be thousands.

$1,077,335 (millions) would be 1 Trillion dollars worth of yachts, which would be one hellofa lotta yachts.
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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 19, 2020, 09:25:09 PM »
You can't make this stuff up; largest loan asset segment "Yachts". I didn't Photoshop it; really.
Wow, must be Boston  :)


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