Author Topic: Secondary market automation  (Read 5777 times)

Emmanuel

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Secondary market automation
« on: February 25, 2015, 10:58:05 AM »
LendingRobot now offers both automated buying and selling on the Lending Club secondary market.
Buying on the secondary market is very similar to the primary market, albeit with slightly different criteria (such as credit score trend). For selling, we manage a kind of 'dutch auction', meaning we automatically lower the prices of notes until they're sold.

You can see more details on http://blog.lendingrobot.com/post/111977932781/automated-secondary-market-trading

BruiserB

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Secondary market automation
« Reply #1 on: February 25, 2015, 01:35:48 PM »
I haven't participated in the secondary market at all....buying or selling. This might persuade me to give it a try.  Do you foresee a day where LendingRobot would be able to evaluate individual secondary notes and assign them a predicted return like you do on the primary market?


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lascott

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Re: Secondary market automation
« Reply #2 on: February 25, 2015, 04:36:48 PM »
I haven't participated in the secondary market at all....buying or selling. This might persuade me to give it a try.
Exact same for me. I just submitted my application to LC and they are reviewing it.

Do you foresee a day where LendingRobot would be able to evaluate individual secondary notes and assign them a predicted return like you do on the primary market?
Excellent question.  It would seem if they have access to the original data they could provide the "expected return" for it at least. ie. for 1-36 months.  vs the 10-36 months if you bought a note that was 10 months old already.  I'd be happy with the 1-36 months "expected return" number myself.
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Emmanuel

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Re: Secondary market automation
« Reply #3 on: February 26, 2015, 10:57:15 AM »
Do you foresee a day where LendingRobot would be able to evaluate individual secondary notes and assign them a predicted return like you do on the primary market?

Absolutely. Predicting returns is even more important on the secondary market. Platforms do a good job on the primary market, so even random picking can generate positive returns; on the secondary market it's more of a jungle.
Also, because we have more information (payments already made, FICO score evolution), our predictions can be more accurate.

BruiserB

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Secondary market automation
« Reply #4 on: February 26, 2015, 12:06:31 PM »
Do you foresee a day where LendingRobot would be able to evaluate individual secondary notes and assign them a predicted return like you do on the primary market?

Absolutely. Predicting returns is even more important on the secondary market. Platforms do a good job on the primary market, so even random picking can generate positive returns; on the secondary market it's more of a jungle.
Also, because we have more information (payments already made, FICO score evolution), our predictions can be more accurate.

That's what I would have thought....so the next question is when do you think you'd roll out this capability? That's when I could see the secondary market becoming a lot more interesting!


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thezfunk

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Re: Secondary market automation
« Reply #5 on: February 27, 2015, 10:04:38 AM »
This is great news but...

I sell notes that are down 50 points or more.  I don't see a way to specify notes any narrower than 'trending down'.  I don't want to sell notes that are down only 20 points.  Is there a way to add that granularity?

rawraw

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Re: Secondary market automation
« Reply #6 on: March 04, 2015, 05:01:01 PM »
This is great news but...

I sell notes that are down 50 points or more.  I don't see a way to specify notes any narrower than 'trending down'.  I don't want to sell notes that are down only 20 points.  Is there a way to add that granularity?
+1,000

rockinray

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Secondary market automation
« Reply #7 on: March 04, 2015, 05:31:46 PM »
+2,000.  I would also be interested!


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thezfunk

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Re: Secondary market automation
« Reply #8 on: March 04, 2015, 05:45:53 PM »
Oops...I posted in the wrong place.