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91
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!
92
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.

93
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.
94
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
95
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.
96
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  :)


97
Investors - LC / Re: LC Retail Loan Volume
« Last post by mark78 on February 19, 2020, 05:57:35 PM »
the Q4 investor presentation shows a consistent decline in the % of $-originations allocated to the retail channel throughout every quarter of 2019.

is the end of the retail channel near?

I only trade on the secondary market and am trying to see how much volume will be coming down the pipes in the next few years. The graphic shows the mix for 2019- Self-directed Investors volume is down to $103M, down from around $250M per quarter in 2017. Is it safe to assume that only Self-directed Investors will list notes on the secondary market? Or do the other categories also contribute to secondary market volume?



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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 19, 2020, 04:12:26 PM »
Quite a day for LC stock. Rallied from a low of $11.66 around 10 am into the close and finished at $12.98 a share; a loss of only 1.37%.
The volume was 3x an average day.
If I'm not mistaken they reported their first quarterly profit ever. What's not to like  :)
99
Investors - LC / Re: LC Retail Loan Volume
« Last post by Fred93 on February 19, 2020, 11:25:34 AM »
I agree with you.  Twenty loans/day is not an ongoing business.

The end of the retail channel is near, because LC set this path in motion a long time ago.  They have steadily reduced the allocation to the retail market.  I believe they'd really like to just shut it immediately, but they fear the reaction of all the retail customers, so they're driving them away slowly.

LC makes more money by selling loans on the institutional side.  They fouled up long ago by making the retail fees too low.  Astonishingly they actually charge the institutional customers more!  The fee structure is different, so one has to do a bit of a calculation to see this.  And of course the retail operation has higher costs.  There's all the SEC regulatory stuff, information filed with SEC for every damn loan.  There's the customer service costs.  The web site and statements and 1099s and answering phone calls from thousands of retail lenders.  All the lawyer costs associated with complying with different regulations in each state re selling the notes to lenders.

Has nothing to do with LCX or intent of keeping 10% of originations.  LCX is an attempt to add a new way to package up the product for institutional customers, but they already have several ways the product is packaged.  LCX is just one more.

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General P2P Lending Discussion / Re: Lending Club Is A Bank
« Last post by Rob L on February 19, 2020, 09:57:54 AM »
At the open at least the equity market isn't impressed. LC is down $1.20 per share (-9.12%) to $11.96 per share.
They did announce quarterly earnings last evening which is a major factor of course.
Where it will close is anyone's guess. BTW the Dow is up 82.
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