where have all the good (folio) notes gone..?

[yojoakak]

Download Tamper Money or Grease Monkey browser extensions and search for Lendingclub.

You should find Yoyojak's script. It adds some very nice functionality to LC's website. Interest Radar is also a great solution, but I'm waiting to see some improvements to the auto-sell tool.

Here's the link:

https://userscripts.org/scripts/show/103295

You can even set your own pricing function (although you still have to click some buttons to make it go.)

[Fred]

Why are there SO many negative YTM notes on the platform. What am I missing???

IMHO, highly negative YTM notes on FOLIOfn are the works of sophisticated sellers trying to lure naive buyers.

[dontvote]

Highly sophisticated sellers wouldn't waste time with that crap. Just normal cheats I think or a model is mis pricing v

[Show Me The $]

I guess there is always someone looking for a new sucker...but there are SO MANY of them. They should just allow a negative yield. WHo on earth would want to buy that? There is no reason to allow it, it detracts from 'the experience' imho

[Fred]

Short-dated US Treasuries were in the negative territory a few times in 2011.

http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=billRatesYear&year=2011

There were plenty of buyers!  In fact, due to supply & demand, the treasuries were negative because of the buyers.

I am not saying this is what's happening with negative YTM FOLIOfn notes; I am saying that "things happened" in the markets.

[dontvote]

Someone at LC has printed and framed your post. Comparing folio to treasuries!

[Fred]

Someone at LC has printed and framed your post. Comparing folio to treasuries!

Why not?

In assessing "Efficient Frontier", all things are considered.

[GS]

Am I misunderstanding what negative YTM means?  Doesn't that guarantee you'll lose money, even if the person repays without prepayments? 

[Fred]

Am I misunderstanding what negative YTM means?  Doesn't that guarantee you'll lose money, even if the person repays without prepayments?

Yes, the buyer will lose money.

If you see FOLIOfn for LoanID = 501012, NoteID = 1495313, the seller is asking for $13.69 while the Note itself only has 1 remaining payment of $8.13.

[lender_john]

So the main reason for the highly negative YTM is that LC does not always remove the note from sale after a payment.

You can't list something at more than 70% markup and yet you always see some notes at a much higher markup.

[Show Me The $]

As a follow up to this general topic...I have a few foliofn notes that have been pending (sales) for days. What gives?

[New Jersey Guy]

"As a follow up to this general topic...I have a few foliofn notes that have been pending (sales) for days. What gives?"

Nothing settles over the weekend.
Notes sold on Thursday will generally settle by 7:30 PM EST Friday.
Anything sold at anytime on a Friday?  Forget it.  It's Monday by 7:30 PM EST.

God help you if there is a holiday on Monday.  Your notes could totally change status before settle.

[Show Me The $]

Thanks Jersey. On the bright side however...I sold a few notes finally. I have my first 'late' I discounted the crap out of it, we will see on that one. I think it went pending Thursday evening.