Author Topic: high past-due note rate  (Read 1686 times)

wdong

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high past-due note rate
« on: August 31, 2016, 10:17:33 AM »
I've been investing in lendingclub and prosper for about 6-9 months.  Here's my number:

Adjustment for Past-Due Notes  ( $547.04 )
Adjusted Account Value             $45,672.05

Adjusted Net Annualized Return 7.42%.  (I heard that the number is already inflated for an account < 1 year old.)

And here are my prosper numbers:

Current $9,861.93
Late      $416.10


Aren't the late ratio a bit too high?

anabio

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Re: high past-due note rate
« Reply #1 on: August 31, 2016, 12:55:12 PM »
I've been investing in lendingclub and prosper for about 6-9 months.  Here's my number:

Adjustment for Past-Due Notes  ( $547.04 )
Adjusted Account Value             $45,672.05

Adjusted Net Annualized Return 7.42%.  (I heard that the number is already inflated for an account < 1 year old.)

And here are my prosper numbers:

Current $9,861.93
Late      $416.10


Aren't the late ratio a bit too high?

Can't speak about Prosper, but for LC I think you might be a little  high in comparison to what my portfolio showed when my notes were 6-9 months old (depending on what Grades you have invested--I invested in A,B,C. If you have lower grades your adjusted numbers should be expected to be higher than mine). If you have no charge off's you are doing better.

Since you mentioned 7.4% adjusted return that makes me think your portfolio grades kind of mirror what I have/had. My adjusted return was about 8.4 at the 9 month period, but a lot of my loans were purchased at a higher interest point in LC's history. When you bought your loans my interest probably was 1% higher than your  new loans. (Even with the increase in interest for LC over the past few months, most of my loans are still a half percent higher than what LC charges now).

At 6-9 months portfolio age (which was Dec of 2014) I had about $31,500 invested. On Dec 31 I had $262 adjusted for past due notes. I had an equal amt of A, B, C. At that time I was using LC's numbers for adjustment. Since I assume you have not customized your percentages your numbers should be comparable to mine. Since you have $15,000 more than I invested you would take that $262 and add an additional 50% so it would be around $392. So you seem to be a little high in comparison to my history. On Dec 31, 2014 I had $72 in Charge offs so if you have no charge offs you are not that far off my numbers...probably doing about the same, maybe a little more in the hole than me at a similar portfolio age/grade.

Note: I only invest in 36 month loans so if you have a lot of 60 month loans my figures cannot really be compared to yours.

Brace yourself...I think you will be seeing more adjustments and defaults than you are seeing now...but as has been said numerous times in this forum, the return on your money in LC even with charge off's is quite a bit better than you can make in a bank now-a-days.

Currently (with $5,500 remaining in my portfolio and with 6-9 months remaining in term) by ANAR is 5.22%
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money