Author Topic: WT*????????????????????  (Read 12960 times)

jheizer

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Re: WT*????????????????????
« Reply #15 on: June 14, 2016, 07:49:22 PM »
And here I was excited I bought 3 notes in the last 2 days.  Pretty darn good ones too IMO.  Two are renters, but with great everything else and they are 100% funded already.
New rates or old rates?

1 New C and 2 old rate Ds.  On the rate change day I blocked buying any high D/ any Es.  The new C rate one was https://www.lendingclub.com/browse/loanDetail.action?loan_id=82441119
Replacement to P2P Quant's Percentile Tool http://lc.geekminute.com

Lovinglifestyle

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Re: WT*????????????????????
« Reply #16 on: June 14, 2016, 08:10:19 PM »
I bought that C one too.  It was the only one I bought today.

rj2

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Re: WT*????????????????????
« Reply #17 on: June 15, 2016, 01:53:36 AM »
I recently made my 2016 IRA contribution. The $5500 went to Vanguard instead of LC because I have doubts whether I could find $5500 worth of notes to buy.

I'm sure that Sanborn isn't losing any sleep over my $5500 and maybe he doesn't even care about all our $5500's added up together. Maybe he only cares about being invited to golf with his new friends in the institutional world.

jrr6415sun

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Re: WT*????????????????????
« Reply #18 on: June 15, 2016, 05:07:43 AM »
I have $5k in cash built up because the last week has been 0 loans. My search doesn't even have that many requirements I just invest in D+ notes. I was considering doing the 2% bonus with a deposit, i'm glad I didn't.

I really don't understand why this is a good strategy for LC. What was the point of trying to get people to invest more and then blocking new loans? I get not wanting to flood the market but this is worse.

Fred93

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Re: WT*????????????????????
« Reply #19 on: June 15, 2016, 05:13:19 AM »
What was the point of trying to get people to invest more and then blocking new loans? I get not wanting to flood the market but this is worse.

I don't see any evidence of LC "blocking new loans".  I think you are fantasizing.

jrr6415sun

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Re: WT*????????????????????
« Reply #20 on: June 15, 2016, 11:28:19 PM »

I don't see any evidence of LC "blocking new loans".  I think you are fantasizing.


where are the loans then? I'm not fantasizing that there are no D+ loans for the last week.

Fred93

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Re: WT*????????????????????
« Reply #21 on: June 15, 2016, 11:56:14 PM »
I don't see any evidence of LC "blocking new loans".  I think you are fantasizing.
where are the loans then? I'm not fantasizing that there are no D+ loans for the last week.

Here's how it works.  LC has to pay to acquire borrowers.  There are several borrower acquisition channels, such as direct mail, brokers, bank partners, etc.  Because LC has to pay to get borrowers, they adjust how much of this they do to get the "right" number of borrowers, in other words enough borrowers to satisfy the demand they have from lenders.  If they rev up the sourcing too high, several bad things happen.  Borrowers are disappointed.  Money is wasted.  Finally, there are government regulations regarding some channels, such as direct mail.  LC is forced to fund some loans themselves if they were direct mail sourced and no buyer grabs them.  (Its a sort of an anti-bait-and-switch regulation.)

On May 9th, lender demand took a sudden dive.  In response, LC dropped the level of sourcing activity.  As a result of this adjustment, there are many fewer loans being posted, and you don't see the selection that you used to see.

My main point is that the reduced number of loans being posted is a result of the reduced demand by lenders.  That's the way it has to be.

We all hope demand will pick up over the next few weeks.  There are already some signs that retail demand is picking up a bit.  The number of loans posted is already up a bit from the trough.

pclee37

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Re: WT*????????????????????
« Reply #22 on: June 16, 2016, 12:49:01 AM »
Below is the chart for the % of Fractional Loan assigned. Since 5/10 the % increase to 70%, record high since Feb 2016. Then from 6/7, % of Fractional dropped significantly to 10%, confirming some of other members saying loans assigned have dropped. Hope it is only temporary and they can manage the balance in the long run



Rob L

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Re: WT*????????????????????
« Reply #23 on: June 16, 2016, 09:51:21 AM »
Below is the chart for the % of Fractional Loan assigned. Since 5/10 the % increase to 70%, record high since Feb 2016. Then from 6/7, % of Fractional dropped significantly to 10%, confirming some of other members saying loans assigned have dropped. Hope it is only temporary and they can manage the balance in the long run

Very nice chart. Since you have the data available would it be easy to produce a stacked bar chart based on dollars w&f offered each day. That would be pretty informative too. TIA.

pclee37

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Re: WT*????????????????????
« Reply #24 on: June 17, 2016, 01:09:02 AM »
Daily loan is too volatile. Instead, I put the Weekly number of new loans (Whole + Fractional)
Last week uptick is fishy and could be seasonal due to Direct Mail. I do see same trend up in last quarter too

Fred93

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Re: WT*????????????????????
« Reply #25 on: June 17, 2016, 01:32:57 AM »
Last week uptick is fishy and could be seasonal due to Direct Mail. I do see same trend up in last quarter too

Traditionally, LC has cut way back in the last few weeks of each quarter.  My theory is that they have normally run a little hotter than plan during most of the quarter, and then put on the brakes in the last few weeks to end up right on plan.  This was easy to do before the scandal, because demand was strong, so they could just throttle supply and end up with whatever numbers they wanted.

2016Q1 was different.  They pumped at the end of the quarter.  This was our early sign that the quarter was below plan.  Instead of originations being up 15% or 16% from the prior quarter, they were only up 6%.  Q2 will certainly be a down quarter, so I would imagine that they would like to pump now.  Of course demand has softened, so this would be pushing on a string.

We're all watching the loan posting numbers to see if and when and how volume will return.  I agree that 1 up week is not enough to believe we see at trend.

sommers

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Re: WT*????????????????????
« Reply #26 on: June 17, 2016, 07:13:09 AM »
Trust me I am way past the $25 per loan strategy.

So what exactly are those of us who are loyal investors and what to continue investing supposed to do?  I understand what you are saying about demand, but right now I am not encouraged to deposit more $ onto the site given the quantity of available loans. 

Again my solution to the problem is to put 100% of loans on the retail side first (we do not need 14 days, give us 2 days).  All unfunded amounts are offered to whole loan market as a whole loan and LC simply needs to internally track the retail and whole loan separately.

Example:

Borrower loan #1 - $10,000
Retail investors fund $2k in 2 days.  Remaining $8k is offered to whole loan market.  If whole loan market does not fund the loan, 100% of loan is cancelled.  If funded, loan #1 becomes loan #1retail and loan #1whole.  Borrower makes same one payment, Lending Club has to do a bit more work distributing the monthly payment.

This solution is a win win for everyone, retail investor gets more options, whole loan market gets more options.  Lending Club keeps everyone happy.

I am not arguing with you Fred, just saying those of us who want to continue to invest are getting hosed.  I really feel like the above solves a lot of problems and really does not require much more work.

Just venting my frustration.  LC has been a great investment for me for the last 6.5 years and I am starting to get the feeling that the ride is about to end.
Buy my loans--I'm liquidating out of this turkey

pplinvestor

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Re: WT*????????????????????
« Reply #27 on: June 18, 2016, 10:16:45 AM »
can you discount more?  The amount of discount on available notes seems lower than what I was able to find 5 months ago.

Larry321

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Re: WT*????????????????????
« Reply #28 on: June 18, 2016, 04:22:24 PM »
Some of you guys gave great explanations on why there are so few new good (D and higher risk) loans being offered.
Yesterday there were a couple of D rated loans I liked. The day before two F rated loans.  Today, all the loans are A and B rated.

If this continues, I will just let the payments build up and slowly shift over to Prosper.
My ANAR has been hovering at around 8.5% so I have been happy until now. 
Do any of you have a preference as to an alternative to Lending Club? 

LC notes investor for 3 years

Bitcoin speculator

Fred93

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Re: WT*????????????????????
« Reply #29 on: June 18, 2016, 04:43:21 PM »
If this continues, I will just let the payments build up and slowly shift over to Prosper.
...
Do any of you have a preference as to an alternative to Lending Club?

I'm in both LC and Prosper.  I'm trying to build my investment at P, but I find it very difficult.  I get one or two loans that match my filter about every 2nd or 3rd day.  My P filter is much looser than my LC filter, but still is difficult.

If the recent low volume at LC is getting you down, then P is not a magic solution.