New Loans of the E F and G Grades

[Larry321]

I understand now what it must have been for 17th and 18th century sailors to get caught in the doldrums, that low-pressure area around the equator where the prevailing winds are calm and you and your ship sit there for says until some wind finally appears to take you to somewhere where the wind is blowing. For several days, there have been no new E, F or G loans to invest in. Today, finally, there were a few.


My Adjusted Net Annualized Return is at 8.60%.  A few other investors on here claim 9-10%. With no E, F, or G loans, I will never be able to match their wonderful returns!

There seem to be so few of all types of new loans. Or are the good loans being entirely funded so quickly before I even get to see them?

[bobeubanks]

My Adjusted Net Annualized Return is at 8.60%.  A few other investors on here claim 9-10%. With no E, F, or G loans, I will never be able to match their wonderful returns!

I have 11% NAR on my Prosper account and I'm 67% AA and A, 27% B&C, and 6% D and E.

[Larry321]

My Adjusted Net Annualized Return is at 8.60%.  A few other investors on here claim 9-10%. With no E, F, or G loans, I will never be able to match their wonderful returns!

I have 11% NAR on my Prosper account and I'm 67% AA and A, 27% B&C, and 6% D and E.

67% and 27%? Is that on Lending Club? Please do teach us your secrets, O Great master investor!  Serious! How do you do it?
Are you suggesting I switch from Lending Club to Proper?

 

[jz451]

No he is describing his Prosper diversification. Lending Club doesn't have a AA grade.

My Adjusted Net Annualized Return is at 8.60%.  A few other investors on here claim 9-10%. With no E, F, or G loans, I will never be able to match their wonderful returns!

I have 11% NAR on my Prosper account and I'm 67% AA and A, 27% B&C, and 6% D and E.

67% and 27%? Is that on Lending Club? Please do teach us your secrets, O Great master investor!  Serious! How do you do it?
Are you suggesting I switch from Lending Club to Proper?

 

[bobeubanks]

67% and 27%? Is that on Lending Club? Please do teach us your secrets, O Great master investor!  Serious! How do you do it?
Are you suggesting I switch from Lending Club to Proper?

On Prosper as I noted. I'm not suggesting that you change from LC to P, just that high risk notes aren't necessary to get good returns. And in case anyone is wondering if perhaps my notes aren't seasoned, the newest note was bought in April 2014.

[jrr6415sun]

I haven't seen an E,F or G loan in weeks and right now there are only A and B loans. Is there a ton less borrower demand now or is LC saving all of these notes for institutional investors?

[Fred93]

I haven't seen an E,F or G loan in weeks and right now there are only A and B loans. Is there a ton less borrower demand now or is LC saving all of these notes for institutional investors?

There are "a ton less" loans available, but it isn't because of supply of borrowers.  LC must adjust the number of loans it sources to fit investor demand.  Investor demand is down post crisis, so LC sources fewer loans.  Fewer loans means less selection for you and me.

[Larry321]

I haven't seen an E,F or G loan in weeks and right now there are only A and B loans. Is there a ton less borrower demand now or is LC saving all of these notes for institutional investors?

Jrr6415sun:  I have seen the E, F, and G grade loans in the last few days, but they are getting funded really quickly, and tehre are just not as many of them.  It is like a real feeding frenzy at feeding time in the fish tank!

[dr.everett]

Lots of these grades available on Folio. Pretty much all of my activity as of late has been there. Many good deals to be found. And since they are not "new", a bit less chance of straight roller, one and done, etc.

[fliphusker]

Lots of these grades available on Folio. Pretty much all of my activity as of late has been there. Many good deals to be found. And since they are not "new", a bit less chance of straight roller, one and done, etc.

Have not looked today, but recently I have thought the really good deals, -3+ have really dried up.  Should say except for notes that I have a tough time pulling the trigger on.  I just can not get myself to buy notes who have been 16+ days late.  IGP can not be recent either.  I see all the time notes that are IGP every single month and pay on the same exact day and no doubt are perfectly good, but if they do not mind getting calls every month, something is wrong with them not moving the payments back. 
Maybe it is an irrational fear, but I would rather snag a note -1.5 with solid payment history with not an adverse YTM, then to take chances on those notes with a -3 or -5 discount. 
Am I wrong?

[Fred93]

I haven't seen an E,F or G loan in weeks and right now there are only A and B loans. Is there a ton less borrower demand now or is LC saving all of these notes for institutional investors?

At the 6PM feeding, the following new loans appeared
26 grade E, of which 14 were fractional + 12 whole.
11 grade F, of which 10 were fractional + 1 whole.

So no, I don't see "LC saving all of these notes for institutional investors". 

Facts are more useful than recycled conspiracy theories, and this "they must save all the good stuff for the institutional boys" conspiracy theory is really getting old.

[dr.everett]

Lots of these grades available on Folio. Pretty much all of my activity as of late has been there. Many good deals to be found. And since they are not "new", a bit less chance of straight roller, one and done, etc.

Have not looked today, but recently I have thought the really good deals, -3+ have really dried up.  Should say except for notes that I have a tough time pulling the trigger on.  I just can not get myself to buy notes who have been 16+ days late.  IGP can not be recent either.  I see all the time notes that are IGP every single month and pay on the same exact day and no doubt are perfectly good, but if they do not mind getting calls every month, something is wrong with them not moving the payments back. 
Maybe it is an irrational fear, but I would rather snag a note -1.5 with solid payment history with not an adverse YTM, then to take chances on those notes with a -3 or -5 discount. 
Am I wrong?

In my case, I'm working more towards what I see and want on Folio- as stands right now my tools make purchases there based on the filters I have set, followed afterwards by new loans being issued. For the last few weeks there was never money left over to buy new loans- it was all consumed by Folio purchases. And this is on 2 accounts that each generate $200-700 a day of payment activity.

Today is the first day a new loan was purchased- and that was by Lending Robot. I also use Interest Radar with some other filters- it tends to fire only after LR has finished and if there is still money available. It hasn't made any purchases in weeks. I consider this to be an excellent position to be in as my earlier days used to have periods of time where $1k or more was waiting to be loaned out, or it was waiting in committed cash for loans to fund, followed by the usual return because the loan failed a check, etc.

Others here talk about being fully invested and having minimal cash waiting. Both my accounts currently have $0 waiting in commited cash, and .45 available in one account, the other has $4.56. Seeing that makes me very happy. 

[rawraw]

I haven't seen an E,F or G loan in weeks and right now there are only A and B loans. Is there a ton less borrower demand now or is LC saving all of these notes for institutional investors?

At the 6PM feeding, the following new loans appeared
26 grade E, of which 14 were fractional + 12 whole.
11 grade F, of which 10 were fractional + 1 whole.

So no, I don't see "LC saving all of these notes for institutional investors". 

Facts are more useful than recycled conspiracy theories, and this "they must save all the good stuff for the institutional boys" conspiracy theory is really getting old.

It's peer lending populism!

Sent from my SAMSUNG-SM-G935A using Tapatalk

[fliphusker]

Lots of these grades available on Folio. Pretty much all of my activity as of late has been there. Many good deals to be found. And since they are not "new", a bit less chance of straight roller, one and done, etc.

Have not looked today, but recently I have thought the really good deals, -3+ have really dried up.  Should say except for notes that I have a tough time pulling the trigger on.  I just can not get myself to buy notes who have been 16+ days late.  IGP can not be recent either.  I see all the time notes that are IGP every single month and pay on the same exact day and no doubt are perfectly good, but if they do not mind getting calls every month, something is wrong with them not moving the payments back. 
Maybe it is an irrational fear, but I would rather snag a note -1.5 with solid payment history with not an adverse YTM, then to take chances on those notes with a -3 or -5 discount. 
Am I wrong?

In my case, I'm working more towards what I see and want on Folio- as stands right now my tools make purchases there based on the filters I have set, followed afterwards by new loans being issued. For the last few weeks there was never money left over to buy new loans- it was all consumed by Folio purchases. And this is on 2 accounts that each generate $200-700 a day of payment activity.

Today is the first day a new loan was purchased- and that was by Lending Robot. I also use Interest Radar with some other filters- it tends to fire only after LR has finished and if there is still money available. It hasn't made any purchases in weeks. I consider this to be an excellent position to be in as my earlier days used to have periods of time where $1k or more was waiting to be loaned out, or it was waiting in committed cash for loans to fund, followed by the usual return because the loan failed a check, etc.

Others here talk about being fully invested and having minimal cash waiting. Both my accounts currently have $0 waiting in commited cash, and .45 available in one account, the other has $4.56. Seeing that makes me very happy. 

With that amount daily to invest, I see why you are automated on FOLIO.  I would/could never do that though.  No doubt that one of your filters is up/flat for FICO.  I have sent requests both to NSR and Anil at PC about adding a feature that will allow to filter recent  FICO.  I see notes all the time on FOLIO that has an up FICO overall, but a recent bad downturn.  A note can have 130 upswing and look great.  But if it has a recent 120 downswing, you would never see it on auto. 
If you are buying up to 40 notes a day, doubt an oddity like that would even be much of a factor to be concerned with. 

[dr.everett]

I try to catch any developing FICO issues manually by looking at the note exports once a month. Got a spreadsheet set up that loads the CSV file and then filters for excessive drops amongst other things. Unfortunately granular FICO drops are something that none of the tools that I am aware of does, and would be a really cool feature to have.