Author Topic: Net of Defaults and Fees?  (Read 2997 times)

edward

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Net of Defaults and Fees?
« on: June 14, 2013, 07:25:32 PM »
"Net Annualized Return per grade net of defaults and fees from inception to May 13, 2013. Prospectus filed with the SEC."
https://www.lendingclub.com/info/statistics.action

I've always thought of "net of" as meaning "taking into account." On a real estate investing forum site, a clearly anti-LC poster commented that "net of default" means "not counting defaults."

Which is it?

SarahV

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Re: Net of Defaults and Fees?
« Reply #1 on: June 14, 2013, 07:30:46 PM »
Net generally means what you're left with after deductions. Plus, I can't imagine the G notes would drop off like that unless it were including defaults...

New Jersey Guy

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Re: Net of Defaults and Fees?
« Reply #2 on: June 14, 2013, 07:38:41 PM »
I'm under the impression "net" is minus fees and defaults.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

rawraw

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Re: Net of Defaults and Fees?
« Reply #3 on: June 14, 2013, 07:52:32 PM »
"Net Annualized Return per grade net of defaults and fees from inception to May 13, 2013. Prospectus filed with the SEC."
https://www.lendingclub.com/info/statistics.action

I've always thought of "net of" as meaning "taking into account." On a real estate investing forum site, a clearly anti-LC poster commented that "net of default" means "not counting defaults."

Which is it?
That guy is mistaken.

edward

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Re: Net of Defaults and Fees?
« Reply #4 on: June 14, 2013, 08:17:43 PM »
OK, Thanks all. I thought the same thing and glad to have my understanding of it confirmed from such esteemed faculty. Good comment SarahV. Now if we could just get G notes to continue the upward trend in returns from F notes, that sure would be great! But that's another conversation for another day.