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Author Topic: Can the notes of whole loans be traded?

w
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Can the notes of whole loans be traded?
OP: November 01, 2019, 11:00:00 PM
Does anyone know whether notes of whole loans can be traded on LC’s trading platform Folio? Just out of curiosity. I heard that only notes from fractional loans can be traded there. Whole loans are traded somewhere else. Is it so?
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l
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Can the notes of whole loans be traded?
#2: November 01, 2019, 11:00:00 PM
I would demand a higher return for whole loan due to risk concentration.  The chance of one $100 note default is higher than equal quality 4 $25 notes default at the same time.
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Can the notes of whole loans be traded?
#4: November 04, 2019, 12:00:00 AM
I don’t believe you can sell whole loan on folio. Iirc, Whole loans are not issued as notes. Whole loans are usually sold in package as private transaction. You will need lending club blessing to change the ownership of whole loans. During the hay days, there was a broker service that facilitated whole loan package transaction, I can’t recall the name now.

The highest outstanding principal on a note listed on folio recently was in $7,000 range.
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r
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Can the notes of whole loans be traded?
#7: November 04, 2019, 12:00:00 AM
How do you own notes for whole loans? J
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T
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Can the notes of whole loans be traded?
#10: November 05, 2019, 12:00:00 AM
If you have whole loan notes in your portfolio, you could have tried to list one such loan on folio to make all this discussion moot.

from: Fred93 on November 04, 2019, 04:52:53 PM
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T
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Can the notes of whole loans be traded?
#12: November 06, 2019, 12:00:00 AM
That's interesting. I didn't remember that. I just remembered there being a limit on the amount of a loan note you could fund. Interesting 😊
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