Author Topic: LC interest rates huge update 3/30/2020  (Read 856 times)

Fred93

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LC interest rates huge update 3/30/2020
« on: April 15, 2020, 12:19:09 AM »
LC made a huge change on 3/30/2020, increasing rates for high quality loans by 2%, medium quality by 3%, and low quality loans by 4%.  Quite different than the tiny meaningless rate adjustments of the past. 

Then 10 days later, they announced that there would be no more grade D loans issued.  I suppose this opens the possibility of future rate increases for C grade loans.

Of course we still cannot judge what the change in default rates will be in light of the Covid-19 events.

« Last Edit: April 15, 2020, 12:40:12 AM by Fred93 »

JDII

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Re: LC interest rates huge update 3/30/2020
« Reply #1 on: April 15, 2020, 12:16:44 PM »
It has been nice getting a bunch of A rated loans above 10%. 

I'm with you wondering about the default rates of the future. A lot of loans are deferring payments into June and July.

Interesting few months coming up.


rawraw

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Re: LC interest rates huge update 3/30/2020
« Reply #2 on: April 15, 2020, 09:08:30 PM »
Oh wow. Seems like a great opportunity