Author Topic: LC interest rates updated 2/20/2018  (Read 1206 times)

Fred93

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LC interest rates updated 2/20/2018
« on: March 30, 2018, 01:09:40 AM »
LC updated interest rates on 2/20/2018, so I've updated my chart...


Changes this time are minor.  The entire D group made a small move up.  All of A,B,C went down by 0.01%.  Thes minor changes give the impression that some people who don't really understand things are turning cranks and simply rerunning old analyses as they were taught years ago.

A1 went DOWN from 5.32% to 5.31% ! 

Meanwhile, as investors know, returns on investment in LC loans are way down, because default rates moved up in 2015 and have never recovered.  Also market interest rates move up day by day.  3 month LIBOR is now over 2%. 
« Last Edit: March 30, 2018, 04:51:56 AM by Fred93 »

Fred93

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Re: LC interest rates updated 2/20/2018
« Reply #1 on: March 30, 2018, 04:48:58 AM »
Lets look at how interest rates in general have been changing over the same timeframe as that last chart.  Lets look at some benchmarks like the LIBORs and the T-bill rates...



They're all a little different, but they've all gone UP ABOUT TWO PERCENT during this time period.  Some a little more.  Some a little less.

Meanwhile, the Lendingclub A1 rate has gone down!

Something is not right here.  This cannot hold.
« Last Edit: March 30, 2018, 04:52:36 AM by Fred93 »

Rob L

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Re: LC interest rates updated 2/20/2018
« Reply #2 on: March 30, 2018, 09:13:48 AM »
Thanks for the update. IIRC last quarter originations were down slightly. LC said they thought future originations may go down since their new G5 model would be rejecting more applications to improve loan performance and their stock took a hit. Could be they simply can't increase rates and maintain originations, but if they don't then they will find it increasingly difficult to find investors. Banks took a pretty big step back last quarter. Catch 22. It will be quite a while before we know if the G5 model results in improved loan portfolio performance. Will be looking forward to their next quarterly results.