Review of my lending club account

[Rob L]

The current chart shows the mass exodus of retail investors. Almost no accounts less than 9 months old.
For perspective a comparison from around 5 years ago. A very different picture.

I think it would be hard to compare the last 9 months to any other time period.

Very true but I miss your point. Once again the Fed has instituted "Zero Interest Rate Policy". The incentives to reach for yield by investors is possibly greater now than ever. That would argue for more rather than fewer LC investor accounts. At any rate the current chart obviously shows the exodus started much longer ago than 9 months and the retail investor base had essentially vanished by then; like smoke in the wind. Lately though I've actually been thinking LC should see an uptick in new retail investors chasing yield. There are very few fixed income alternatives that have a positive real rate of return. We'll see

[JDII]

Very true but I miss your point. Once again the Fed has instituted "Zero Interest Rate Policy". The incentives to reach for yield by investors is possibly greater now than ever. That would argue for more rather than fewer LC investor accounts. At any rate the current chart obviously shows the exodus started much longer ago than 9 months and the retail investor base had essentially vanished by then; like smoke in the wind. Lately though I've actually been thinking LC should see an uptick in new retail investors chasing yield. There are very few fixed income alternatives that have a positive real rate of return. We'll see

We will indeed see. My crystal ball is no better than anyone else. We all just try to make the best choices we can.

Your point about the Fed are valid. My point is from March on it becomes hard to compare apples to apples.  There were so many extremes both financially and emotionally in the world. Do the trends you point to continue and if so what does that mean for business? That is the question. 

[AnilG]

Couple of years ago, I had the same thought that LC will court retail investors when institutions bail and retail investors will come back when they can't find another attractive alternative (fixed income not generating anything, equity market very volatile).

But, I think retail investor wagon will not arrive at the LC station. Neither LC has any interest in bringing them back, they seem to be focused on getting retail funds through other indirect means such as banking, Nor retail investors are interested in tying up funds for 3-5 years without a way to redeem early.

But as you said, we will see.

Very true but I miss your point. Once again the Fed has instituted "Zero Interest Rate Policy". The incentives to reach for yield by investors is possibly greater now than ever. That would argue for more rather than fewer LC investor accounts. At any rate the current chart obviously shows the exodus started much longer ago than 9 months and the retail investor base had essentially vanished by then; like smoke in the wind. Lately though I've actually been thinking LC should see an uptick in new retail investors chasing yield. There are very few fixed income alternatives that have a positive real rate of return. We'll see

[Rob L]

Couple of years ago, I had the same thought that LC will court retail investors when institutions bail and retail investors will come back when they can't find another attractive alternative (fixed income not generating anything, equity market very volatile).

But, I think retail investor wagon will not arrive at the LC station. Neither LC has any interest in bringing them back, they seem to be focused on getting retail funds through other indirect means such as banking, Nor retail investors are interested in tying up funds for 3-5 years without a way to redeem early.

But as you said, we will see.

Very true but I miss your point. Once again the Fed has instituted "Zero Interest Rate Policy". The incentives to reach for yield by investors is possibly greater now than ever. That would argue for more rather than fewer LC investor accounts. At any rate the current chart obviously shows the exodus started much longer ago than 9 months and the retail investor base had essentially vanished by then; like smoke in the wind. Lately though I've actually been thinking LC should see an uptick in new retail investors chasing yield. There are very few fixed income alternatives that have a positive real rate of return. We'll see

Both your reasons seem quite true. Without the existence of Folio and the liquidity it provided if needed I'm not sure I'd have invested in LC notes in the first place. That was always a very big deal to me. The day Prosper dropped Folio was the day I dropped Prosper. Never bought a single Prosper note after that announcement. When I exited LC I used Folio in a substantial way and worried the entire time it could be lost at a moments notice; particularly after it was bought by Goldman.

[JDII]

It is clear there are some people who just don't like Lending Club.  I have to wonder why a thread about my returns draws negative responses about past experiences.

Sorry for anyone who got beat up in the past. Maybe if my returns go down I could join the party.

[Rob L]

There's no correlation between my well earned low opinion of LC and my desire for you or anyone else to do very well with investments there. These are two separate things. I wish nothing but the best for you and apologize if you were offended. It was not my intent. None of my comments were directed towards you or your investment methodology. My posts were only information for your and others consideration to be dealt with as desired. I enjoy reading your reporting. Since I left LC it's about the only information I see regarding how things are going there.

[JDII]

Had some issues with my email and had to create a new account.  The previous thread is located:  https://forum.lendacademy.com/index.php/topic,4828.0.html

A lot of you guys on here were very kind answering my questions prior to me signing up with Lending Club.  I'll try to give an update monthly or so.

I started buying loans on 09-14-17 and I've been adding several to my account weekly.



Update as of 09.19.20

My annualized return on loans that have paid off is 9.33%.

My Notes at-a-Glance         891

Not Yet Issued                    1
Issued & Current                604
In Grace Period                   4
Fully Paid                          233
Late 16-30                         2
Late 31-120 Days               1
Default                              1
Charged Off                        42
Canceled                            3


Adjusted Net Annualized Return      9.70%
Net Annualized Return                   11.79%
Weighted Average Age of Portfolio  17.8 months

My notes by grade are:

A  27.60%
B  55.80%
C  12.20%
D  3.30%
E   1.10%


I've been using LC picks (see other threads in the forum about them if you are unfamiliar) in order to pick which loans to invest in. My LC picks ranking is 66.8/82.

Thanks again for all who helped out in the past.

[JDII]

Had some issues with my email and had to create a new account.  The previous thread is located:  https://forum.lendacademy.com/index.php/topic,4828.0.html

A lot of you guys on here were very kind answering my questions prior to me signing up with Lending Club.  I'll try to give an update monthly or so.

I started buying loans on 09-14-17 and I've been adding several to my account weekly.



Update as of 09.26.20

My annualized return on loans that have paid off is 9.24%.

My Notes at-a-Glance         899

Not Yet Issued                    7
Issued & Current                603
In Grace Period                   4
Fully Paid                          235
Late 16-30                         3
Late 31-120 Days               1
Default                              1
Charged Off                        42
Canceled                            3


Adjusted Net Annualized Return      9.80%
Net Annualized Return                   11.78%
Weighted Average Age of Portfolio  18.0 months

My notes by grade are:

A  28.60%
B  55.00%
C  12.00%
D  3.30%
E   1.10%


I've been using LC picks (see other threads in the forum about them if you are unfamiliar) in order to pick which loans to invest in. My LC picks ranking is 66.8/82.

Thanks again for all who helped out in the past.

[JDII]

Had some issues with my email and had to create a new account.  The previous thread is located:  https://forum.lendacademy.com/index.php/topic,4828.0.html

A lot of you guys on here were very kind answering my questions prior to me signing up with Lending Club.  I'll try to give an update monthly or so.

I started buying loans on 09-14-17 and I've been adding several to my account weekly.



Update as of 10.03.20


My annualized return on loans that have paid off is 9.24%.

My Notes at-a-Glance         903

Not Yet Issued                    1
Issued & Current                602
In Grace Period                   5
Fully Paid                          245
Late 16-30                         2
Late 31-120 Days               2
Default                              0
Charged Off                        43
Canceled                            3


Adjusted Net Annualized Return      9.97%
Net Annualized Return                   11.77%
Weighted Average Age of Portfolio  18.0 months

My notes by grade are:

A  29.00%
B  54.74%
C  12.00%
D  3.30%
E   1.10%


I've been using LC picks (see other threads in the forum about them if you are unfamiliar) in order to pick which loans to invest in. My LC picks ranking is 66.8/82.

Thanks again for all who helped out in the past.