Author Topic: Are we all seeing many late payments this month?  (Read 5590 times)

rawraw

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Re: Are we all seeing many late payments this month?
« Reply #15 on: May 02, 2016, 04:48:03 PM »
Just be careful with the interpretation of delinquency rate curves. Delinquency rate can be influenced by two factors - number of delinquent notes and/or number of active notes.

Code: [Select]
delinquency rate by note count = Number of late notes / Number of active notes.
delinquency rate by outstanding principal = Outstanding principal of late notes / Outstanding principal of active notes

For example, delinquency rate will be higher, if you decide not to reinvest repayments in new notes or let cash buildup in your account, i.e. fewer active notes thus higher delinquency rate. Similarly, you can drop your delinquency rate significantly by adding and deploying more cash into new notes.

The line is upward sloping.  Does anyone here do vintage curves on their LC notes (similar to what LC does in their 10K)?  I've never done that before and figured I may use LC as a learning opportunity
Yeah I understand that. I mean vintage in terms of not gross amounts but the pass due of a group of loans from funding through life. Not a portfolio measure that gets skewed by growth etc

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AnilG

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Re: Are we all seeing many late payments this month?
« Reply #16 on: May 02, 2016, 05:21:13 PM »
Yeah I understand that. I mean vintage in terms of not gross amounts but the pass due of a group of loans from funding through life. Not a portfolio measure that gets skewed by growth etc


Lending Club publishes delinquency rate spreadsheet which shows delinquency rate for quarterly vintage from funding through life.

https://www.dropbox.com/s/3ndfk4h6ld6vokx/Delinquency%20Rates_APR2016.xlsx?dl=0

Just FYI, delinquency rate for vintages also has same dynamics as portfolio. The vintages that have higher volume of loans issued near the end of the vintage tend to have lower delinquency rate. Yearly vintages are much more prone to this than quarterly vintage.
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lascott

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Re: Are we all seeing many late payments this month?
« Reply #17 on: May 02, 2016, 09:28:17 PM »
Yeah I understand that. I mean vintage in terms of not gross amounts but the pass due of a group of loans from funding through life. Not a portfolio measure that gets skewed by growth etc


Lending Club publishes delinquency rate spreadsheet which shows delinquency rate for quarterly vintage from funding through life.

https://www.dropbox.com/s/3ndfk4h6ld6vokx/Delinquency%20Rates_APR2016.xlsx?dl=0

Just FYI, delinquency rate for vintages also has same dynamics as portfolio. The vintages that have higher volume of loans issued near the end of the vintage tend to have lower delinquency rate. Yearly vintages are much more prone to this than quarterly vintage.
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