Author Topic: Notes exclusively for automated investing?  (Read 5109 times)

415ab

  • Guest
Notes exclusively for automated investing?
« on: July 08, 2014, 09:22:26 PM »
I've been using LC for 14 months.  Up until about 2 months ago, I was able to pick up enough notes at feeding times to keep my cash balance dropping, allowing me to add to it. 

Things I've noticed:
(1) I am now rarely able to find new notes at feeding times.  I just picked up 2 now, but those are the first I've gotten on my own in the last month.  I used to be able to find 1-3 per day.
(2) Bluevestment hasn't gotten anything for me in over a month.
(3) I enrolled in "automated investing" last December but it was only picking up 1 or 2 notes a week.  In the past 2 weeks, I've seen it start to pick up a noticeable amount than it was previously.  My cash to notes ratio hasn't changed significantly.  It's 10% cash. 
(4) I'm wondering if the increase in (3) is attributable to putting aside more loans exclusively for automated investing.  This one, for example,  which I picked up via automated investing has 815 investors.  I don't think I've seen that many for one note before.
https://www.lendingclub.com/browse/loanDetail.action?loan_id=20792270

I did get an email yesterday from LC telling me they'd noticed I was accumulating cash faster than I was investing and they suggested I loosen up my filters.  Don't think I want to do that.  14 months in and I only have 3 of 511 that have been written off.  I now only go for D, E and F notes, but used to pickup C's until the rate dropped.
« Last Edit: July 08, 2014, 09:34:37 PM by 415ab »

Fred93

  • Hero Member
  • *****
  • Posts: 2129
    • View Profile
Re: Notes exclusively for automated investing?
« Reply #1 on: July 08, 2014, 10:28:15 PM »
There are 1200 loans on the site, and you can't find any?  You must have very narrow criteria.

Open up your filters.

Thatguybil

  • Newbie
  • *
  • Posts: 39
    • View Profile
Re: Notes exclusively for automated investing?
« Reply #2 on: July 08, 2014, 10:41:17 PM »
There are 1200 loans on the site, and you can't find any?  You must have very narrow criteria.

Open up your filters.

Or increase your investment size to 50 or 100.

If you are confident that it is your filters that are doing a great job in picking super quality then upping the investment amount will mean that you can put money to work 2-4x faster.

This might be less risky then loosening your filters.

415ab

  • Guest
Re: Notes exclusively for automated investing?
« Reply #3 on: July 09, 2014, 12:23:58 AM »
There are 1200 loans on the site, and you can't find any?  You must have very narrow criteria.

Open up your filters.

I think I mentioned I was happy with the past results of my filters.  I'm at 0.6% charge-offs at 14 months.  The filters haven't changed in many months and my blue dot on the performance graph is above everyone else's in the "understanding your returns" section;  something else changed and I'm wondering what that is, theorizing that perhaps some notes are going directly to auto invest and I can't get as many of those good ones that I used to get manually.

Or increase your investment size to 50 or 100.

If you are confident that it is your filters that are doing a great job in picking super quality then upping the investment amount will mean that you can put money to work 2-4x faster.

This might be less risky then loosening your filters.

I think this might be what I need to do since I haven't changed my selection criteria and I need to adjust to the new normal.  Thanks for the suggestion.
« Last Edit: July 09, 2014, 12:38:21 AM by 415ab »

rawraw

  • Hero Member
  • *****
  • Posts: 2757
    • View Profile
Re: Re: Notes exclusively for automated investing?
« Reply #4 on: July 09, 2014, 09:04:17 AM »
There are 1200 loans on the site, and you can't find any?  You must have very narrow criteria.

Open up your filters.

I think I mentioned I was happy with the past results of my filters.  I'm at 0.6% charge-offs at 14 months.  The filters haven't changed in many months and my blue dot on the performance graph is above everyone else's in the "understanding your returns" section;  something else changed and I'm wondering what that is, theorizing that perhaps some notes are going directly to auto invest and I can't get as many of those good ones that I used to get manually.

Or increase your investment size to 50 or 100.

If you are confident that it is your filters that are doing a great job in picking super quality then upping the investment amount will mean that you can put money to work 2-4x faster.

This might be less risky then loosening your filters.

I think this might be what I need to do since I haven't changed my selection criteria and I need to adjust to the new normal.  Thanks for the suggestion.
That blue dot doesn't include all that zero interest cash...

Fred

  • Hero Member
  • *****
  • Posts: 1421
    • View Profile
Re: Re: Notes exclusively for automated investing?
« Reply #5 on: July 09, 2014, 01:46:08 PM »
That blue dot doesn't include all that zero interest cash...

Nor accounts that have bought/sold notes on Folio.

Quote
This chart only includes accounts that have not transacted on the Note Trading Platform.

AnilG

  • Hero Member
  • *****
  • Posts: 1088
    • View Profile
    • PeerCube
Re: Re: Notes exclusively for automated investing?
« Reply #6 on: July 09, 2014, 03:13:15 PM »
You guys are brutal ... popping his blue balloon. Let him enjoy his blue dot for a while.  ;D

That blue dot doesn't include all that zero interest cash...

Nor accounts that have bought/sold notes on Folio.

Quote
This chart only includes accounts that have not transacted on the Note Trading Platform.
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

415ab

  • Guest
Re: Notes exclusively for automated investing?
« Reply #7 on: July 09, 2014, 08:57:28 PM »
I think most everyone missed the point of my post.  Obviously no one knows for sure if some notes are now exclusive to automated investing participants or what changed recently where I'm no longer getting notes through my filters (or bluevestment) when I was before.  Was just curious if others had seem the same thing and if they had also seen that automated investing was producing a lot more results in the past 2 weeks.  (It found 3 today, 5 yesterday, 4 the day before.  It was previously picking 1 or 2 a week with the same cash balance ratio.)

I'm happy with my returns.  I'm happy with my filters.  Would like more notes, but as suggested by the only helpful reply, I'll just up the amounts on the notes I can still obtain through LC's automated investing instead of the previous manual method.

But please, continue to focus on the shiny blue dot.

rawraw

  • Hero Member
  • *****
  • Posts: 2757
    • View Profile
Re: Re: Notes exclusively for automated investing?
« Reply #8 on: July 09, 2014, 11:12:09 PM »
I think most everyone missed the point of my post.  Obviously no one knows for sure if some notes are now exclusive to automated investing participants or what changed recently where I'm no longer getting notes through my filters (or bluevestment) when I was before.  Was just curious if others had seem the same thing and if they had also seen that automated investing was producing a lot more results in the past 2 weeks.  (It found 3 today, 5 yesterday, 4 the day before.  It was previously picking 1 or 2 a week with the same cash balance ratio.)

I'm happy with my returns.  I'm happy with my filters.  Would like more notes, but as suggested by the only helpful reply, I'll just up the amounts on the notes I can still obtain through LC's automated investing instead of the previous manual method.

But please, continue to focus on the shiny blue dot.
Pretty sure you were the one focused on it and dismissing others, with a ten percent cash ratio.

Rob L

  • Hero Member
  • *****
  • Posts: 2028
    • View Profile
Re: Notes exclusively for automated investing?
« Reply #9 on: July 10, 2014, 08:15:54 AM »
LC has said repeatedly that its Auto Invest isn't a remedy for the lender/borrower imbalance. If they are putting loans aside for the program (and I doubt that very much) it seems to me to be highly unlikely they would be anything but randomly selected.

Could be that your filters were capturing loans that LC's model was pricing too high (that's the point isn't it). As their model gets better such opportunities become fewer. Maybe the loans you were finding are still there but they are now assigned a lower probability of default by the LC model and hence a lower interest rate (you say you are not looking at C's any more). So, if true, you could say at least it was nice while it lasted.

Emmanuel

  • Full Member
  • ***
  • Posts: 157
    • View Profile
    • LendingRobot
Re: Notes exclusively for automated investing?
« Reply #10 on: July 10, 2014, 11:51:54 AM »
I doubt that regulations would allow LC to restrict some of the loans to automated investing, since as an issuer they have to give equal access to everybody. (The whole loan program is different, it's reserved to institutions because it's risker. Same for the small business loans).

The increase in number of loans picked up by Automated Investing is normal, since it's way faster than it was before, but it's definitely not designed to snatch up loans in front of individual investor,s

As a matter of fact, we tend to see a little less competition for funding loans, these days...

Fred93

  • Hero Member
  • *****
  • Posts: 2129
    • View Profile
Re: Notes exclusively for automated investing?
« Reply #11 on: July 10, 2014, 03:54:19 PM »
I doubt that regulations would allow LC to restrict some of the loans to automated investing, since as an issuer they have to give equal access to everybody.

There is no such regulation.

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Notes exclusively for automated investing?
« Reply #12 on: July 12, 2014, 09:29:26 AM »
It would be extremely difficult for Lending Club to hold loans just for automated investing. This scheme would soon be exposed by some of the many people who study the data closely. When Lending Club provides the data download detail for their second quarter (which should be available soon), there will be many people, myself included, poring over the details of this past quarter.

As Emmanuel said the whole loan program is different. But it is not just for institutional investors - anyone can sign up for it if you are willing to invest in the entire loan. Of course, most individual investors don't have large enough accounts to do this and still hold a diversified portfolio.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns