Author Topic: Seven month review of my Lending Club account  (Read 1556 times)

jd

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Seven month review of my Lending Club account
« on: April 03, 2018, 12:57:39 PM »
A lot of you guys on here were very kind answering my questions prior to me signing up with Lending Club.  Figured I'd give a seven month (or so) update.

I started buying loans on 09-14-17 and I've been adding several to my account weekly. 

My Notes at-a-Glance      159

Not Yet Issued                    2
Issued & Current             148
In Grace Period                   0
Fully Paid                            8
Late 31 - 120 Days              1

Adjusted Net Annualized Return      10.33%
Net Annualized Return                    12.23%
Weighted Average Age of Portfolio:  4.2 months

My notes by grade are:

A  22.4%
B  30.90%
C  27.70%
D  14.60%
E   4.50%

I have no reason to be anything but happy with the results so far.

I've been using LC picks (see other threads in the forum about them if you are unfamiliar) in order to pick which loans to invest in. My LC picks ranking (active notes) is 71.74/82. 

I don't work for LC picks nor am I family member or something.  I just wanted to be transparent about how I make my choices.

Thanks again for all who helped out in the past.

Rob L

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Re: Seven month review of my Lending Club account
« Reply #1 on: April 03, 2018, 05:14:37 PM »
Nice to see. Hope you provide monthly updates so we may follow.
While you're at it you might consider including (WAIR) weighted average interest rate from the Understanding Your Returns page.

Also a suggestion (which I did not do); make an LC portfolio for each note vintage and put each note you buy into its corresponding vintage portfolio.
Lets you see at a glance how my 17Q4, 18Q1, etc.  notes are doing. You could do the same thing with a spread sheet but why bother.
If anyone has done this please chime in with the pro's and con's of this.

Finally, make this a continuing thread "Monthly review of my LC Account" to keep everything in one place.
« Last Edit: April 03, 2018, 05:21:29 PM by Rob L »

rj2

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Re: Seven month review of my Lending Club account
« Reply #2 on: April 08, 2018, 12:18:39 AM »
I sort of do that, but didn't in the beginning.

I have two active portfolios, one called "auto" and one called "folio". New notes purchased by the auto invest filter I have go into the "auto" portfolio while stuff I buy on folio goes in that one.

Periodically I remembered these something like "Auto Dec17" and start new ones.

It's not sorting them by some exact quarter because basically I forget to do it like clockwork. Also my folio notes can be of any vintage and they go in the current folio portfolio regardless.

I do change my filters for auto invest over time and there is some eyeballing when I buy from folio. So nothing is scientific.

But it helps me understand whether the effort of buying from folio is worth it by seeing how much better or worse I am over time than the auto invest rule.

Though in practice In willing to buy seasoned notes with significantly lower credit scores than I ever allow the auto rule to buy. WAIR of my folio notes if at least 5% higher than the auto portfolio.

Rob L

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Re: Seven month review of my Lending Club account
« Reply #3 on: April 08, 2018, 09:48:54 AM »
I sort of do that, but didn't in the beginning.

I have two active portfolios, one called "auto" and one called "folio". New notes purchased by the auto invest filter I have go into the "auto" portfolio while stuff I buy on folio goes in that one.

Periodically I remembered these something like "Auto Dec17" and start new ones.

It's not sorting them by some exact quarter because basically I forget to do it like clockwork. Also my folio notes can be of any vintage and they go in the current folio portfolio regardless.

I do change my filters for auto invest over time and there is some eyeballing when I buy from folio. So nothing is scientific.

But it helps me understand whether the effort of buying from folio is worth it by seeing how much better or worse I am over time than the auto invest rule.

Though in practice In willing to buy seasoned notes with significantly lower credit scores than I ever allow the auto rule to buy. WAIR of my folio notes if at least 5% higher than the auto portfolio.

All my notes were bought by an auto-invest program. I created a new portfolio every time there was a major change to the scoring model. Never bought anything on Folio. So, your auto is pretty much set up the same as my stuff. However I can't say I learned much about the model scoring performance since everything else changed so much more over time. If I had my notes in vintage portfolios then I'd at least be able to compare their performance with the data provided by LC or by Inksit.

BTW it's easy to move notes from one portfolio to another using the LC website. I'm winding things down so it's not worth the time for me to change things up. So, two sets of vintage portfolios (one for fresh notes and one for Folio purchased ones) it seems like a pretty good idea in theory but I can't say for sure.


rj2

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Re: Seven month review of my Lending Club account
« Reply #4 on: April 12, 2018, 01:59:28 PM »

Yeah, Rob your solution would be a better way to evaluate the health of the underlying LC platform and its loans, to see whether the vintages were improving over time or getting worse.

My goal in setting up the portfolios wasn't quite the same I guess. I have two different ways of investing, and I'm comparing them with one another to see which one is better: letting the auto-buy filter purchase loans for me, or go by them myself on folio with my own filter. In every roughly six month period I have the notes I picked up each way in different portfolios, and I can go back and look and see the return on each strategy separately. That way if it turns out one of the strategies is doing well, and one is a disaster, I can double down on the way that works best.

I know your goal is different--you're evaluating whether to stay on the platform, and have decided to dis-invest and get out. I appreciate all the data that you've posted because I do wonder the same thing myself--at one point I was getting only a 4% overall return from LC, though recently it's risen to 6% again. When I signed up I was expecting more than that, though, I think I'm reconciled to 6% being worthwhile. I'm not investing any new money in LC, but I'm willing to let the $15k or so I have invested ride on that.

Rob L

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Re: Seven month review of my Lending Club account
« Reply #5 on: April 12, 2018, 07:57:39 PM »

Yeah, Rob your solution would be a better way to evaluate the health of the underlying LC platform and its loans, to see whether the vintages were improving over time or getting worse.

My goal in setting up the portfolios wasn't quite the same I guess. I have two different ways of investing, and I'm comparing them with one another to see which one is better: letting the auto-buy filter purchase loans for me, or go by them myself on folio with my own filter. In every roughly six month period I have the notes I picked up each way in different portfolios, and I can go back and look and see the return on each strategy separately. That way if it turns out one of the strategies is doing well, and one is a disaster, I can double down on the way that works best.

I know your goal is different--you're evaluating whether to stay on the platform, and have decided to dis-invest and get out. I appreciate all the data that you've posted because I do wonder the same thing myself--at one point I was getting only a 4% overall return from LC, though recently it's risen to 6% again. When I signed up I was expecting more than that, though, I think I'm reconciled to 6% being worthwhile. I'm not investing any new money in LC, but I'm willing to let the $15k or so I have invested ride on that.

Hey, what you're doing sounds interesting. Please keep us up to date on your analysis.