Author Topic: Cashing Out  (Read 17194 times)

SeanMCA

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Re: Cashing Out
« Reply #45 on: August 04, 2016, 03:13:12 AM »
I spread it out all over in the beginning (when I started in Jan 2014), then shifted to high risk, and then ultimately just to As and Bs. Here's what I'm at now.
Was it the old high grade notes? There has been weakness in Subprime paper

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The E-Gs have been the real killer especially since most disappeared or declared bankruptcy just a few months after getting the loan. The sheer amount of what I believe to be premeditated borrower fraud in those categories is astounding. And then my concentration in the good paying E-Gs has been further reduced by early payoffs, presumably by LC refinancing them out to a lower rate loan. So my highest risk loans either seem to be straight rollers or get paid off really early, killing the return on them.

Also, the grace period category just gets bigger and bigger with them. None of them have any money in their bank accounts so even if they come back current, they scare me to death. 
« Last Edit: August 04, 2016, 03:15:31 AM by SeanMCA »
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SLCPaladin

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Re: Cashing Out
« Reply #46 on: August 04, 2016, 02:19:54 PM »
Quote
The E-Gs have been the real killer especially since most disappeared or declared bankruptcy just a few months after getting the loan. The sheer amount of what I believe to be premeditated borrower fraud in those categories is astounding. And then my concentration in the good paying E-Gs has been further reduced by early payoffs, presumably by LC refinancing them out to a lower rate loan. So my highest risk loans either seem to be straight rollers or get paid off really early, killing the return on them.

Also, the grace period category just gets bigger and bigger with them. None of them have any money in their bank accounts so even if they come back current, they scare me to death.

Your comments echo my experience, although to somewhat of a lesser degree. I'm not as heavy in the lower grade notes, but they have dragged down my portfolio. I'm currently only reinvesting at A-C, and considering abandoning C grade altogether.
« Last Edit: August 08, 2016, 04:25:26 PM by SLCPaladin »

Rob L

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Re: Cashing Out
« Reply #47 on: August 08, 2016, 03:55:33 PM »
An update to include the past week or so of selling.
Buyers are so picky ::). I increased mkup/disc of all notes by +1% and sales rate dropped pretty sharply as you see.
At this point I've moved about 60% of my original investment to cash on the sidelines.
LC's Q2 report is just minutes away. Hope it's great (I still have a lot of money with them)!


Half Right

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Re: Cashing Out
« Reply #48 on: August 08, 2016, 04:59:17 PM »
as i guessed report looks better than i expected and i am not rushing to escape. just letting it dribble out

Rob L

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Re: Cashing Out
« Reply #49 on: August 08, 2016, 05:14:03 PM »
Worse than I'd thought but feel the same way ...

anabio

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Re: Cashing Out
« Reply #50 on: August 08, 2016, 05:25:29 PM »
Worse than I'd thought but feel the same way ...

I'm just glad cash stayed where it is. Gives me a warm fuzzy feeling about not having any institutional problems prior to the majority of my remaining loans paying off by next May. Now all I have to worry about is the darn loans going bad even after 24+ months of payments.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money