Author Topic: Wierd goings on at LC  (Read 20841 times)

donmiller

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Wierd goings on at LC
« on: June 25, 2015, 09:17:41 AM »
This morning, BEFORE the first offering (@6AM pacific), there were 3416 loans available for financing on the platform.

This kind of thing has been going on the last few days, with 1454 available early Tuesday and 2325 available yesterday morning.

Where are these loans suddenly coming from???


lascott

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Re: Wierd goings on at LC
« Reply #1 on: June 25, 2015, 09:53:48 AM »
End of quarter ... has been bringing lots of notes.  LC meeting some numbers?

http://www.lendacademy.com/forum/index.php?topic=3233.msg29318#msg29318
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Fred93

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Re: Wierd goings on at LC
« Reply #2 on: June 25, 2015, 05:59:57 PM »
Where are these loans suddenly coming from???

There has been no statement from LC about this, so we don't know.

For the last few days, LC has been dumping a much larger than normal # of loans each feeding time, and has been allocating 90% to 100% of them to the fractional loan market.  (Instead of the normal 30%  to 50%)

My guess is that these loans come from some new source, which has suddenly been turned on.  Perhaps it is one of the many collaborations they've been issuing press releases about for the last year.

I've heard no good theory on why the loans are suddenly all going to the fractional platform, so I made up my own.  My  theory is that this new source (perhaps someone highly regulated, like a bank) has some legal or regulatory detail which doesn't allow the loans to be "sold" by LC.  Remember, loans on the full-loan market are sold, whereas loans on the fractional market are turned into notes which are sold to us.  I couldn't think of a reason for suddenly allocating almost all loans to the fractional market unless they were forced to do so, so I thought up a theory which would force them to do so.

P2PFact

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Re: Wierd goings on at LC
« Reply #3 on: June 25, 2015, 09:00:58 PM »
But I thought usually retail is more restrictive than institutional? If some security can be sold to retail, they can be sold to institutional. Reverse is not true.

BruiserB

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Re: Wierd goings on at LC
« Reply #4 on: June 25, 2015, 10:04:23 PM »
I noticed today that I had no loans actually issued, despite having a lot of committed cash right now.  I think Lending Club has turned off the issuances for the rest of the quarter.  We'll see if any are issued tomorrow or early next week.  If they have stopped issuing, I take it they are now happy with the quarterly results numbers that they will post.

AnilG

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Re: Wierd goings on at LC
« Reply #5 on: June 25, 2015, 10:44:34 PM »

There has been no statement from LC about this, so we don't know.

For the last few days, LC has been dumping a much larger than normal # of loans each feeding time, and has been allocating 90% to 100% of them to the fractional loan market.  (Instead of the normal 30%  to 50%)

My guess is that these loans come from some new source, which has suddenly been turned on.  Perhaps it is one of the many collaborations they've been issuing press releases about for the last year.

I've heard no good theory on why the loans are suddenly all going to the fractional platform, so I made up my own.  My  theory is that this new source (perhaps someone highly regulated, like a bank) has some legal or regulatory detail which doesn't allow the loans to be "sold" by LC.  Remember, loans on the full-loan market are sold, whereas loans on the fractional market are turned into notes which are sold to us.  I couldn't think of a reason for suddenly allocating almost all loans to the fractional market unless they were forced to do so, so I thought up a theory which would force them to do so.

I think you are on to something. Today, I was meeting with a Manager at a Fund of Funds and he expressed similar sentiment about LC deals with community banks. Community Banks don't want to have unsecured consumer loans on their balance sheet but may want to hold on to a small pie of loans sourced through them. This most likely can be made possible by releasing community bank sourced loans to fractional market and then community banks buying a smaller piece of such loans as notes.

The phenomenon of releasing several hundred new loans at each release time appears to have started Monday and seems to be reaching end as much smaller volume of new loans were released at 6pm tonight. Once dust settles, I plan to look into loans released this week to see if anything stands out about these loans.
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BruiserB

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Re: Wierd goings on at LC
« Reply #6 on: June 26, 2015, 06:48:53 AM »
I noticed today that I had no loans actually issued, despite having a lot of committed cash right now.  I think Lending Club has turned off the issuances for the rest of the quarter.  We'll see if any are issued tomorrow or early next week.  If they have stopped issuing, I take it they are now happy with the quarterly results numbers that they will post.

I did have some loans issued today, but fewer than on most days earlier this week.

kya

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Re: Wierd goings on at LC
« Reply #7 on: June 26, 2015, 07:34:20 AM »
i had 4 issued out of 108 pending

lascott

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Re: Wierd goings on at LC
« Reply #8 on: June 26, 2015, 10:41:07 AM »
i had 4 issued out of 108 pending
Account 1: 07 out of 665
Account 2: 11 out of 675
« Last Edit: June 26, 2015, 02:11:31 PM by lascott »
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jheizer

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Re: Wierd goings on at LC
« Reply #9 on: June 26, 2015, 11:28:21 AM »
1 out of 153 here.
Replacement to P2P Quant's Percentile Tool http://lc.geekminute.com

Lovinglifestyle

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Re: Wierd goings on at LC
« Reply #10 on: June 26, 2015, 02:01:45 PM »
2 out of 197 here.  0 yesterday, the 23rd.  12 on the 24th.  Am now at 222 Not Yet Issued.  I like that the Did Not Issue category is at least keeping me supplied with investment money.

BruiserB

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Re: Wierd goings on at LC
« Reply #11 on: June 29, 2015, 09:46:45 AM »
Only had one note issued today.

And only 11 new notes dropped to the fractional pool at 6AM Pacific time this morning....never seen so few before.

lascott

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Re: Wierd goings on at LC
« Reply #12 on: June 29, 2015, 10:04:43 AM »
Only activity I've seen is my "Expected Monthly Payments" values change from yesterday(actually Fri) -- https://www.lendingclub.com/account/portfolios.action

Got this right after I read your post and was going to check. It worked a few moments later.
http://i.imgur.com/ZZ5iqpI.png
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BruiserB

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Re: Wierd goings on at LC
« Reply #13 on: June 29, 2015, 10:07:22 AM »
I looked here

https://www.lendingrobot.com/#/resources/latest/LC/

to see that only 11 new loans dropped.

lascott

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Re: Wierd goings on at LC
« Reply #14 on: June 29, 2015, 10:14:02 AM »
I looked here
https://www.lendingrobot.com/#/resources/latest/LC/
to see that only 11 new loans dropped.
Good reminder. Another source is here where you can mouse over the tiny blue bar above the 6am column.
https://www.peercube.com/histperf/available_loans/lc
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