Author Topic: LC getting desperate for funding? "We're Here to Answer Any Questions" email  (Read 13046 times)

nmay2k

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Ironically I had emailed LC a question on 5/5 at 8 AM and got a call back from them same day that freaked me out. Got an email at 4 pm that they tried to call me to answer. I responded to them on 5/7 that they had not really answered the question and got a call from on 5/9 at 2:30 pm which really freaked me out...so I am guessing they are just being more responsive even though it seems freakish.

jheizer

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And I just had the Answer Your Questions email finally show up 15 minutes ago.
Replacement to P2P Quant's Percentile Tool http://lc.geekminute.com

nonattender

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
A little nonsense now and then is relished by the wisest men.

fliphusker

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
Why do you perceive it as something negative for them to respond?  Retail has absolutely been on the back burner for LC for quite sometime while focusing on whole and institutional aspects.  Retail is such a small part of their business in Q1.
This said, they will need to expand their retail part to make up for the big boys pausing their buying of notes.

nonattender

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
Why do you perceive it as something negative for them to respond?  Retail has absolutely been on the back burner for LC for quite sometime while focusing on whole and institutional aspects.  Retail is such a small part of their business in Q1.
This said, they will need to expand their retail part to make up for the big boys pausing their buying of notes.

I... don't perceive it as negative for them to respond.  I think it's good that they're talking/listening.  I just re-read what I wrote and tried to blame myself for being unclear, but I was unable to do so.  Maybe you need to read it again?  Sorry if I'm missing something.
A little nonsense now and then is relished by the wisest men.

sommers

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
Why do you perceive it as something negative for them to respond?  Retail has absolutely been on the back burner for LC for quite sometime while focusing on whole and institutional aspects.  Retail is such a small part of their business in Q1.
This said, they will need to expand their retail part to make up for the big boys pausing their buying of notes.

Well, they had better move it to the front burner.  Their lame response to us small people---reinforces my decision to exit this crap ASAP.  I've been letting my notes run off for the last three months even before all of this.  I'm sure the secondary market is a buyer market --and I'd get killed trying to move my inventory there.  These people need to make some bold initiatives to assure/insure the retail investor----they are already late on this.  Lip service will not help them.  I'm sure I'm not atypical

Rob L

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“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
― Warren Buffett
So I am going to continue doing FOLIO until the deals are gone, then go back to buying on LC as normal until Q2 released.  Then will rethink my position then.

 The idea pre-dates Mr. Buffet by a century or more:
http://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp

It works until it doesn't. My family's ancestry is Dutch. We still have some tulip bulbs but can't find a buyer at an acceptable price.  ;)

nmay2k

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
Why do you perceive it as something negative for them to respond?  Retail has absolutely been on the back burner for LC for quite sometime while focusing on whole and institutional aspects.  Retail is such a small part of their business in Q1.
This said, they will need to expand their retail part to make up for the big boys pausing their buying of notes.

Well, they had better move it to the front burner.  Their lame response to us small people---reinforces my decision to exit this crap ASAP.  I've been letting my notes run off for the last three months even before all of this.  I'm sure the secondary market is a buyer market --and I'd get killed trying to move my inventory there.  These people need to make some bold initiatives to assure/insure the retail investor----they are already late on this.  Lip service will not help them.  I'm sure I'm not atypical

Actually, people are hanging on to their notes more than you might think. I was surprised (kinda) to see current B4s commanding an average 4.88% premium. I say kinda because those are the ones I want and they have been very very scarce. I guess scarcity commands a high premium. Not a single current loan sub-grade has a negative average mark-up and the As are the lowest with an average 0.6% mark-up. Issued loans average 2X the Current mark-up. There is not a selling panic of good loans. However, if you are in the market for loans In Grace Period & lates, they average -5%, -10% and -25% mark-up. (which I think is a "normal" discount). No selling panic here!

RaymondG

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Actually, people are hanging on to their notes more than you might think. I was surprised (kinda) to see current B4s commanding an average 4.88% premium.
A lot of notes are just hanging there for fishing a premium from incautious buyers.  They are not priced to sell in a week. I would choose to monitor the notes in Folio by using a simple Folio filter to exclude those notes asking for high premiums.

fliphusker

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I note the perception/reality that LC's been so unresponsive to retail it now makes us think something is wrong if they deign to talk to us!

That says a lot...  Glad they're talking (and maybe listening), though...
Why do you perceive it as something negative for them to respond?  Retail has absolutely been on the back burner for LC for quite sometime while focusing on whole and institutional aspects.  Retail is such a small part of their business in Q1.
This said, they will need to expand their retail part to make up for the big boys pausing their buying of notes.

Well, they had better move it to the front burner.  Their lame response to us small people---reinforces my decision to exit this crap ASAP.  I've been letting my notes run off for the last three months even before all of this.  I'm sure the secondary market is a buyer market --and I'd get killed trying to move my inventory there.  These people need to make some bold initiatives to assure/insure the retail investor----they are already late on this.  Lip service will not help them.  I'm sure I'm not atypical
With their big boys on pause, they are still absolutely on the front burner to woo that kind of money back.  We may have been moved to the lil burner for sauce pans though.  I do not see their responses as lame at all.  Feel it is a genuine move to reassure us of their position with us.  When was the last time your cell or cable company called you when you complained about service?  Ya apples and oranges, but you get my drift.
FOLIO is such an odd place, same note can be listed from -4 to +6, for example.  But as far as getting killed, that is also relative.  If you want your principle back that is left on your notes, easily done without taking a loss on principle.  If you want the actual value with interest included, probably not going to happen often.  The FOLIO guys could tell you more, but from reading, they would never pay a premium for a note on FOLIO.
nmay-I have to disagree there.  I just snatched up a number of notes with no IGP or late, E2-5 for -6+ that meets my stringent filters.  Can't imagine the number out there that do not meet such strong filters.

nmay2k

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I have been looking around folio (something I hate to do given my 1% return the last time I did) and there were some good old fashioned notes there at a 2% discount. So your time is probably more productive picking through folio than saving your cash for ~ 10 fractional loans coming out on the primary market that may match your loan subclass. I guess this is what they meant when they said they "may reduce loan volume". The part I don't get is if the borrower has not gone away, why not keep cranking the loans? I am guessing its not the recent events at LC management causing the "reduced volume" but something much bigger than them (the 1Q consumer spending slowdown).

sommers

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I have been looking around folio (something I hate to do given my 1% return the last time I did) and there were some good old fashioned notes there at a 2% discount. So your time is probably more productive picking through folio than saving your cash for ~ 10 fractional loans coming out on the primary market that may match your loan subclass. I guess this is what they meant when they said they "may reduce loan volume". The part I don't get is if the borrower has not gone away, why not keep cranking the loans? I am guessing its not the recent events at LC management causing the "reduced volume" but something much bigger than them (the 1Q consumer spending slowdown).
My understanding is that they no longer can finance new loan originations because their capital sources (institutions and little guys) have stepped back.  Can't loan what you don't have.  I for one have stopped investing and have my account on hold and am debating on educating myself about the folio market to see if it makes sense to begin liquidating what hasn't matured.  Depending on how bad of a bath I'd need to take--I'll have a decision to just ride it out or dump at losses
LC needs to step up and put in place some assurances for note investors in case of their BK.  That would likely free up the liquidity. i for one might consider investing again if I knew I wouldn't get wiped out by another malfeasant management crook

Rob L

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I just snatched up a number of notes with no IGP or late, E2-5 for -6+ that meets my stringent filters.  Can't imagine the number out there that do not meet such strong filters.

I saw those and figured they wouldn't last long. If I remember maybe 8 notes much more steeply discounted than other young non-flawed ones. There were a couple more at around -3, and the rest in the -2's and higher.

fliphusker

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I just snatched up a number of notes with no IGP or late, E2-5 for -6+ that meets my stringent filters.  Can't imagine the number out there that do not meet such strong filters.

I saw those and figured they wouldn't last long. If I remember maybe 8 notes much more steeply discounted than other young non-flawed ones. There were a couple more at around -3, and the rest in the -2's and higher.
Your currently not buying though, right?  Was thinking you were selling your notes and stepping out.

Rob L

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I just snatched up a number of notes with no IGP or late, E2-5 for -6+ that meets my stringent filters.  Can't imagine the number out there that do not meet such strong filters.

I saw those and figured they wouldn't last long. If I remember maybe 8 notes much more steeply discounted than other young non-flawed ones. There were a couple more at around -3, and the rest in the -2's and higher.
Your currently not buying though, right?  Was thinking you were selling your notes and stepping out.

Oh, yeah; not buying. Been spending a lot of time trying to get an understanding of the Folio market and how best to slowly liquidate my portfolio at minimum loss. Big learning curve and I've barely begun. I just want to make reasonable offers, not a fire sale, and let the market decide.