Author Topic: new to investing in LC  (Read 4105 times)

we2ding

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new to investing in LC
« on: October 17, 2016, 09:12:03 PM »
Last week I bought my first notes. One of my notes in showing "fully Paid" I had invested $50. But I don't see where I actually got the $50 back. If it's truly paid, I want to reinvest it-since I am just getting started. Does it take a few days for the money to reappear-kind of like it takes a few days when you transfer money in to invest?


Fred93

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Re: new to investing in LC
« Reply #1 on: October 17, 2016, 09:40:51 PM »
Does it take a few days for the money to reappear-kind of like it takes a few days when you transfer money in to invest?

Precisely.  4 business days.

we2ding

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Re: new to investing in LC
« Reply #2 on: October 18, 2016, 07:06:05 AM »
Thank You! I reinvested it this morning.

Rob L

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Re: new to investing in LC
« Reply #3 on: October 18, 2016, 11:15:34 AM »
You had a note go from newly issued to fully paid in less than two weeks???
That's gotta be close to the record; very strange!
For the record what was the term and grade of the loan? TIA

Debt Free

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Re: new to investing in LC
« Reply #4 on: October 18, 2016, 02:27:33 PM »
It's not unusual.

PAID $25.00     E1 19.99%     36     $0.00     $0.00     $25.02     3/9/16     Fully Paid
PAID $25.00     B2   9.16%     36     $0.00     $0.00     $25.03     5/13/16   Fully Paid
PAID $25.00     D4 18.99%     36     $0.00     $0.00     $25.03     6/23/16   Fully Paid
PAID $25.00     B5 11.49%     36     $0.00     $0.00     $25.03     12/25/15 Fully Paid
PAID $25.00     B3   9.75%     36     $0.00     $0.00     $25.03     5/12/16   Fully Paid

$0.14 of interest on $125 for less than a month = 1.34% annualized return.  STILL better than a savings account.  (Not by much though.)
« Last Edit: October 18, 2016, 02:32:56 PM by Debt Free »

Rob L

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Re: new to investing in LC
« Reply #5 on: October 18, 2016, 04:53:11 PM »
It's not unusual.

PAID $25.00     E1 19.99%     36     $0.00     $0.00     $25.02     3/9/16     Fully Paid
PAID $25.00     B2   9.16%     36     $0.00     $0.00     $25.03     5/13/16   Fully Paid
PAID $25.00     D4 18.99%     36     $0.00     $0.00     $25.03     6/23/16   Fully Paid
PAID $25.00     B5 11.49%     36     $0.00     $0.00     $25.03     12/25/15 Fully Paid
PAID $25.00     B3   9.75%     36     $0.00     $0.00     $25.03     5/12/16   Fully Paid

$0.14 of interest on $125 for less than a month = 1.34% annualized return.  STILL better than a savings account.  (Not by much though.)

If it isn't unusual that makes it all the stranger to me.
Can you put an approximate percentage on it without taking too much effort? TIA

Fred93

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Re: new to investing in LC
« Reply #6 on: October 18, 2016, 05:07:03 PM »
If it isn't unusual that makes it all the stranger to me.
Can you put an approximate percentage on it without taking too much effort? TIA

LC publishes prepayment data on their web site by vintage, by month of prepayment. 

yojoakak

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« Last Edit: October 18, 2016, 05:29:00 PM by yojoakak »

Rob L

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Re: new to investing in LC
« Reply #8 on: October 18, 2016, 05:42:36 PM »
If it isn't unusual that makes it all the stranger to me.
Can you put an approximate percentage on it without taking too much effort? TIA

LC publishes prepayment data on their web site by vintage, by month of prepayment.

Yes they sure do. Thanks for the tip.
For all vintages from 08Q1 through 14Q3 (almost 8 years!) loans fully paid with months on books (MOB=0) was 0%, nada, zip, cypher, ....
I don't mean there were zero occurrences, just 0% of originations per LC's numbers.
An then:

36 month term:
14Q4      15Q1      15Q2      15Q3     15Q4      16Q1     16Q2
0.29%    0.47%    0.64%    0.70%    0.70%    0.97%   1.51%

60 month term:
14Q4      15Q1      15Q2      15Q3     15Q4      16Q1     16Q2
0.25%    0.48%    0.61%    0.81%    0.75%    0.93%   1.38%

Now roughly 3 loans in every 200 are fully paid before the first payment comes due. Makes no sense to me.
Somebody want to try and explain this (or show me where I messed up the data)?

It isn't that unusual (maybe the 2 weeks is, most wait at least 4).
At least LendingClub changed the rules a while back so you don't actually lose money on these.

Yep. Thank goodness for that!


fliphusker

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Re: new to investing in LC
« Reply #9 on: October 18, 2016, 06:51:57 PM »
My account is around the 7th-month mark and seeing under 3% fully paid.  267 notes and 8 fully paid. 
And welcome aboard.  You have found the right place for any of your questions. 

we2ding

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Re: new to investing in LC
« Reply #10 on: October 25, 2016, 08:49:00 PM »
You had a note go from newly issued to fully paid in less than two weeks???
That's gotta be close to the record; very strange!
For the record what was the term and grade of the loan? TIA

It was a matter of days!

we2ding

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Re: new to investing in LC
« Reply #11 on: October 25, 2016, 09:02:52 PM »
Thanks...I am up to 57 notes and will be buying some more tomorrow. My current portfolio is this mix: A (7.1%) B (22.9%) C (32.9%)
D (35.7%) E (0.0%) F (1.4%) G (0.0%)
 What or where can I strengthen...I am thinking A and B Grade.


I recently received some money from my mother's passing and my father asked that I invest it. I once had a loan with Lending Club (paid it off early and opened this account!) Yesterday I opened a Vangaurd Account and I know nothing about investing. I am thinking about closing it before I even get it going and just putting it here!

Fred93

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Re: new to investing in LC
« Reply #12 on: October 26, 2016, 06:47:14 AM »
Thanks...I am up to 57 notes and will be buying some more tomorrow. My current portfolio is this mix: A (7.1%) B (22.9%) C (32.9%)
D (35.7%) E (0.0%) F (1.4%) G (0.0%)
 What or where can I strengthen...I am thinking A and B Grade.

There is no need to spread yourself across the grades.  Decide where in the risk spectrum you want to invest, and concentrate there.

Emmanuel

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Re: new to investing in LC
« Reply #13 on: October 26, 2016, 02:14:26 PM »
There is no need to spread yourself across the grades.  Decide where in the risk spectrum you want to invest, and concentrate there.

I respectfully disagree. Because 2 loans of different grades may be less correlated than 2 loans of the same grade, there is some benefit is mixing grades. We did some analysis that one can read here: http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/

jz451

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Re: new to investing in LC
« Reply #14 on: October 26, 2016, 02:49:56 PM »
What time period were you using for your data, yearly, monthly, because I'm in the process of making an Efficient Frontier of the filters I use  with yearly data and I'm having trouble with the variance/covariance table where the numbers are all essentially zero, leading to only two of the grades being given weights. 

I respectfully disagree. Because 2 loans of different grades may be less correlated than 2 loans of the same grade, there is some benefit is mixing grades. We did some analysis that one can read here: http://blog.lendingrobot.com/research/choosing-loans-with-monte-carlo-diversification-part-2/