Author Topic: Account Total for IRR tracking  (Read 3585 times)

SeanMcD

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Account Total for IRR tracking
« on: December 11, 2012, 05:51:38 PM »
Since I started tracking my IRR in Excel, I've been taking a snapshot of the values at the end of each month and saving them for comparison.  While I was looking through monthly statements recently, I noticed that the value shown for the Account Total at the end of the month was always significantly lower than the value that appeared on the site that day.  The difference is that the total on the site includes accrued interest, whereas the monthly statement only includes cash, loans in funding, and outstanding principal.

The difference seems to be about 1%, a not insignificant amount - for Lending Club's prototypical 800 note account, that's a difference of $200 and a few percentage points of ROI.  For those of you tracking IRR and publishing monthly/quarterly results, which value are you using and why?

yojoakak

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Re: Account Total for IRR tracking
« Reply #1 on: December 11, 2012, 08:10:26 PM »
Account Total also does not include any Pending Purchases from Folfiofn, so depending on how active a trader you are you could see some wild swings.

I use a script to pull those values together, then I paste them into a spreadsheet.

My Accrued Interest seems to swing between about .90% and 1.10% of Account Total (it used to be a little less, that's probably not a good sign), spiking down every week on Thursday or Friday.
« Last Edit: December 11, 2012, 08:56:23 PM by yojoakak »

Peter

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Re: Account Total for IRR tracking
« Reply #2 on: December 11, 2012, 11:38:12 PM »
Sean, I use the monthly statement numbers and then plug them in to my Excel spreadsheet. I add any inflows of cash and the calculate my return using the XIRR() function in Excel. I have had some of my accounts be several hundred dollars off the LC website total.
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Keltset

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Re: Account Total for IRR tracking
« Reply #3 on: December 13, 2012, 04:42:57 PM »
I don't think I have ever reference the monthly statements from LC. I use available cash + (principle + accrued interest) then I degrade principle and interest by LC recovery statistics depending on the notes current status. I will also reduce a notes value if its current status is better than it's historically worst status by the degradation value of it's current status + half the difference between it's current status and its worst status. That's my own little twist because I feel there is a reduced chance in  full term payment on a note that's seen a higher than current status than it's current status is reflecting. I'm estimating my last little twist causes me to understate my current value by a slight amount.

I keep a monthly, quarterly, and yearly records of my XIRR results just for my own personal reference.

edit: I consider notes that have been invested in but not yet "issued" as "cash" for the purpose of this calculation.
« Last Edit: December 13, 2012, 04:46:56 PM by Keltset »

Keltset

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Re: Account Total for IRR tracking
« Reply #4 on: December 13, 2012, 05:07:25 PM »
I had also toyed around with the idea of including the service fees (if paid according to its amortization schedule) in my degradation of a notes value as well... But haven't done anything with that on my stuff yet...