Author Topic: Where are all the high quality loans?  (Read 19029 times)

rawraw

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Re: Where are all the high quality loans?
« Reply #15 on: July 24, 2014, 02:52:46 PM »
What do most of you do in a situation like this?

a) Loosen your filters some?

b) Increase investment per note?

c) Let cash build up until situation improves?

Let cash build up.  Making 0% is better than making 15% for 3 months then experiencing a default.  Plus you have the cash ready for when the volume picks back up.
+1

Once you have trash in the pipeline, when you realize its trash you are stuck with it.  This normally happens all at once

Fred

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Re: Where are all the high quality loans?
« Reply #16 on: July 25, 2014, 10:34:10 AM »
What do most of you do in a situation like this?

a) Loosen your filters some?

b) Increase investment per note?

c) Let cash build up until situation improves?

Let cash build up.  Making 0% is better than making 15% for 3 months then experiencing a default.  Plus you have the cash ready for when the volume picks back up.
+1

Once you have trash in the pipeline, when you realize its trash you are stuck with it.  This normally happens all at once

You guys assumed that loosening criteria means including more risky loans.  That's only half of the story.  In my case, this means including less risky loans.

Rob L

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Re: Where are all the high quality loans?
« Reply #17 on: July 25, 2014, 11:05:07 AM »
You guys assumed that loosening criteria means including more risky loans.  That's only half of the story.  In my case, this means including less risky loans.
True for me too.
I'm up to 1.3% cash so I've dialled back to include less risky / less rewarding loans starting today.

rawraw

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Re: Where are all the high quality loans?
« Reply #18 on: July 25, 2014, 11:15:13 AM »
What do most of you do in a situation like this?

a) Loosen your filters some?

b) Increase investment per note?

c) Let cash build up until situation improves?

Let cash build up.  Making 0% is better than making 15% for 3 months then experiencing a default.  Plus you have the cash ready for when the volume picks back up.
+1

Once you have trash in the pipeline, when you realize its trash you are stuck with it.  This normally happens all at once

You guys assumed that loosening criteria means including more risky loans.  That's only half of the story.  In my case, this means including less risky loans.
Yea, I forgot I'm risk averse compared to most of you guys.  I already try to make sure I have a lot of less risky notes, but it seems that is equally as competitive.

Rob L

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Re: Where are all the high quality loans?
« Reply #19 on: July 25, 2014, 06:15:04 PM »
Meanwhile, FWIW I think I invested more in Prosper notes this week than LC.
That's a first! Where should I post this? LC, Prosper or both?

Ran

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Re: Where are all the high quality loans?
« Reply #20 on: July 25, 2014, 07:05:44 PM »
Meanwhile, FWIW I think I invested more in Prosper notes this week than LC.
That's a first! Where should I post this? LC, Prosper or both?
I vote for both :)

faeriering

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Re: Where are all the high quality loans?
« Reply #21 on: July 27, 2014, 01:40:22 PM »
with all the loans that have been available over the last couple months  I'm sitting at my lowest cash level in a long time.  That being said, usually when this happens I tend to move to higher grade borrowers like Fred implies.

Lovinglifestyle

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Re: Where are all the high quality loans?
« Reply #22 on: July 27, 2014, 01:49:50 PM »
My cash is growing.  I've moved up to B.  Still growing.

RaymondG

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Re: Where are all the high quality loans?
« Reply #23 on: July 27, 2014, 11:53:32 PM »
Only 4 orders have been placed in the past 10 days, comparing 37 notes were bought in the week before that. Cash is growing. My filters is including better graded loans as cash is building up, but still no order was made in this weekend.

Rob L

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Re: Where are all the high quality loans?
« Reply #24 on: July 28, 2014, 08:22:49 AM »
Cash up to 1.7%.
Lets hope this is a better week!

rawraw

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Re: Where are all the high quality loans?
« Reply #25 on: July 28, 2014, 09:08:38 AM »
I've been waiting for Anil to magically appear in this thread with info on the change in volume.  Beetlejuice, Beetlejuice, Beetlejuice . . .

trevor

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Re: Where are all the high quality loans?
« Reply #26 on: July 28, 2014, 01:22:53 PM »
My cash is growing.  I've moved up to B.  Still growing.

Ditto, buying B notes for the first time. I'm sticking with only B4 and B5, though. Seems like the interest rates drop off pretty heavily if you go above that. Not sure if it's worth it.


My regular filters producing 0 to 2 notes, at the max   :'(


I figure it's good to add some more diversity anyways.

JoeB

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Re: Where are all the high quality loans?
« Reply #27 on: July 28, 2014, 04:56:09 PM »
This leads one to ask the question: what has changed?

I've been monitoring LC for a year and have been investing for a couple months but have always had plenty to choose from.

Is it possible LC has forgotten their hardcore base which helped them get to where they are? Are institutional accounts suffering as well?

Interesting thought.

I just got done with the 5pm feeding. Zero, zippo!

Something is not kosher.   :)

Unless your specialty is 29%DTI, 3, 4  or 5 inquiries, 15-20% income/payment, multi records, or all of the above. I've never seen such low quality inventory nor lack of decent loans. The fact that there aren't any, leads me to believe they're being sold elsewhere. Impossible for all of them to fall off the planet and all at the same time. It's like the inventory is being stripped prior to publishing.
« Last Edit: July 28, 2014, 05:29:12 PM by JoeB »
Best to all,

JB

Kombinator

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Re: Where are all the high quality loans?
« Reply #28 on: July 28, 2014, 05:16:59 PM »
Yep, something definitely has changed and it is really not a good thing.  Perhaps a large new institutional investor has come in for a large allocation, perhaps their most recent batch of borrowrs are lower grade than normal, perhaps the interest rates fell overall...whatever it is would be good once it passes...if it does.

trevor

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Re: Where are all the high quality loans?
« Reply #29 on: July 28, 2014, 05:23:35 PM »
I don't think the problem is institutional investors (for my filters, at least.) I check as soon as new notes are uploaded, and I'm just not seeing many notes at all.


For the record, I've been investing in high income C-G notes, but it has really slowed down.