Author Topic: Sold 858 notes for $13,632 in two weeks using a software program I wrote  (Read 497 times)

martinp2p

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I started to invest in LendingClub notes in 2015 and gradually accumulated thousands of notes. A few months ago, I needed to liquidate a big portion of my holdings, but found it really inconvenient to do so efficiently.

The Folio website allowed me to set a markup / discount and list selected notes for sale, but for notes closer to the end of the term, I often hit negative YTM, even with little or no markup. When YTM was negative, listing was not allowed. It seemed that I had to manually adjust price for those notes, which was a lot of manual work given a large number of notes. If notes were not sold before listing expired, I had to do so over and over again, until the notes were eventually sold.

It was such a pain that I decided to create a software program to automate the process for me. The program will call LC API to get detailed information of all my notes, and then call FolioFN API to list each note for sale at a predefined markup. If a note is not sold before listing expires, it will automatically adjust the price lower and re-list, until it is eventually sold. It will also adjust the price automatically to avoid negative YTM.

With some trial and error, the program did what it was supposed to do. In the first two weeks I let the program run, it sold 858 notes for $13,631.75. After $136.51 of trading fees, the proceeds were $13,495.24. In comparison, the outstanding principal of all 858 notes was $13,269.46.

Not too bad. Although the rate notes got sold slowed down in the next few weeks, I was satisfied with the result. Because I could liquidate the majority of my notes in a relatively short period of time.

I thought some you guys may face the same problem when needing to liquidate your LC investments. If so, please reply and let me know. If there's enough interest, I can brush up the program a little bit so that it can be released publicly for anyone to use.

Thanks!
MartinP2P


Rob L

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Re: Sold 858 notes for $13,632 in two weeks using a software program I wrote
« Reply #1 on: February 27, 2019, 09:25:34 PM »
Congratulations. Sounds like you did very well.
It took me much longer to write the software to do basically the same thing. It wasn't a trivial thing.

AnilG

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Re: Sold 858 notes for $13,632 in two weeks using a software program I wrote
« Reply #2 on: February 27, 2019, 11:19:32 PM »
Agree, it is not a trivial thing. It becomes much more complex when you have do this for other users. There are lot of gotchas you need to guard against when doing this for other people.
 
Congratulations. Sounds like you did very well.
It took me much longer to write the software to do basically the same thing. It wasn't a trivial thing.
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