Author Topic: LC's expected default rate  (Read 3003 times)

AmCap

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LC's expected default rate
« on: December 20, 2012, 06:18:08 PM »
All - when you are about to purchase a note, a screen pops up and shows you LC's expected default rate. Is that information compiled anywhere that is easy to get to?

J2E

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Re: LC's expected default rate
« Reply #1 on: December 20, 2012, 07:30:11 PM »

Peter

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Re: LC's expected default rate
« Reply #2 on: December 20, 2012, 11:20:35 PM »
The Expected Default Rate is a proprietary Lending Club number that they include in the BrowseNotes.csv file but it doesn't make it in to the main download file. Consequently the information on all loans is not compiled anywhere.

You are probably wondering what I have been. Is their expected default rate accurate? We have no way of knowing from the publicly available data.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

rawraw

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Re: LC's expected default rate
« Reply #3 on: December 23, 2012, 09:34:19 AM »
I don't pay attention to it.  Because its nowhere near close enough to accurate to my loan selections.

Grant

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Re: LC's expected default rate
« Reply #4 on: December 26, 2012, 03:07:25 PM »
I've wondered the same thing... because of the apparent drought of "high quality" D-E-F-G grade notes that I invest in, I played around with the option of letting LC build a portfolio.  My usual filter builds a ROI in the mid 13% range based on 1+ yea old historical data.  The LC build gave me an estimated ROI in the 14+% range and included three groups that I don't put money in: people with multiple inquiries, green energy and business loans.  I wonder what LC sees that I don't?