Poll

Considering recent events are you investing in new notes at LC

I'm still investing in new notes
35 (56.5%)
I have stopped investing in new notes but will start up again once things settle down
11 (17.7%)
I've stopped investing in new notes but would start up again if LC sets up a BRV for notes
10 (16.1%)
I've stopped investing in new notes and don't intend to start up again
4 (6.5%)
I'm selling all my notes on Folio...LC is doomed.
2 (3.2%)

Total Members Voted: 62

Author Topic: Are you investing in new notes at LC  (Read 9997 times)

fliphusker

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Re: Are you investing in new notes at LC
« Reply #30 on: June 04, 2016, 02:38:11 AM »
Quote
Quality of notes are improving - investing in new loans
I was just buying Folio notes all at a significant discount, noticing that the YTM was greater than the note interest rate, then looked at the current interest rates here:
https://www.lendingclub.com/public/rates-and-fees.action
Most of the existing folio notes even when purchased at a discount, the YTM is still below the new notes since the interest rates on the new notes is much higher than the existing pool of notes on folio.  Makes sense, they have moved interest rates up so there should be a sizable discount on folio anyway [even if there was no other issues with investor confidence]. 
ergo:  now buying more new loans and checking ytm exceeds new note interest rate on folio before purchase
I am absolutely no folio expert, so take the rest with a grain of salt.
If I can grab a note on FOLIO that is 12 months old at 1% over original YTM knowing that the first 12 months are the most dangerous to own a note, or I could buy a brand spanking new note that is 1% more, which one will I take?  I think it is a no brainer choice.  Both notes of course meet your criteria for purchase. 
Am I looking at this wrong?

twigster

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Re: Are you investing in new notes at LC
« Reply #31 on: June 04, 2016, 09:21:46 AM »
It is at least worth referencing back to the current interest rates being offered, often they are up to 2% higher, I was quite surprised at this as I had not been checking before when buying off folio.  It appears LC wants to make up for lowering the interest rates previously while the default rates were rising.  Yes you can still find good deals on folio depending on what difference you would be willing to take between the folio note and new notes.

dompazz

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Re: Are you investing in new notes at LC
« Reply #32 on: June 05, 2016, 06:45:14 PM »
Over the past month I have been buying the cigarette butts on Folio.  Loans with <=12 payments, good credit and payment history were selling for 2-5% discount.  That seems to have dried up. 

I am also seeing more of my notes selling at a premium of >1.5%.  I even sold a note last week that I picked up the week before for a 2.5% discount for a 1.7% markup.  Good times.

The quality of notes getting listed on the primary market in the last few days has picked up (in my eyes).  I'm back to buying there, though I am still not adding new money to LC, just re-investing cash flows. 

ThinleyWangchuk

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Re: Are you investing in new notes at LC
« Reply #33 on: June 06, 2016, 12:07:59 PM »
Quote
Quality of notes are improving - investing in new loans
I was just buying Folio notes all at a significant discount, noticing that the YTM was greater than the note interest rate, then looked at the current interest rates here:
https://www.lendingclub.com/public/rates-and-fees.action
Most of the existing folio notes even when purchased at a discount, the YTM is still below the new notes since the interest rates on the new notes is much higher than the existing pool of notes on folio.  Makes sense, they have moved interest rates up so there should be a sizable discount on folio anyway [even if there was no other issues with investor confidence]. 
ergo:  now buying more new loans and checking ytm exceeds new note interest rate on folio before purchase

How do you sort out the notes on foliofn (i.e. by employment status, revolving balance etc)?