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Author Topic: liquidation strategy on folio

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mo

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liquidation strategy on folio
OP: May 26, 2016, 11:00:00 PM
It used to be that there were a lot of states that could only buy notes on Folio in which case it made sense that notes sold for a mark-up since there was significant demand that couldn't be satisfied by LC directly.  Currently though there are only four states that can't invest in LC loans directly (PA, NC, NM, and AK).  There are really only two reasons I can think of that you would want to buy a note on Folio instead of directly from LC. One you are getting a nice discount or two you can't buy any other way.

The only time I buy from Folio is when I can get nice loans at a 3-5% discount.

http://blog.lendingclub.com/is-lending-club-available-in-my-state/
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s
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liquidation strategy on folio
#4: May 28, 2016, 11:00:00 PM
Just curious, what are the few things you wanted that were not available with PeerCube? We usually incorporate features requested by subscribers pretty quickly. We could have saved you lot of time and work in developing your own tool. We already have done lot of hard work that you didn't need to do.

from: Rob L on May 29, 2016, 10:13:56 AM
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B
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T
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liquidation strategy on folio
#7: May 28, 2016, 11:00:00 PM
pretty sure these two strategies are logically equivalent.
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T
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liquidation strategy on folio
#9: May 29, 2016, 11:00:00 PM
Rob,

Thanks for sharing your good suggestions. See my responses inline below. A few are planned for next iteration. Some have just too many exceptions to implement reliably with our limited resources.

For next iteration: 1) and 5) are definite Yes, 4) is May be, and 2) and 3) are definite No.

You may want to contact me through email or contact form at the site next time. I can give you guidance and tips how to get somewhere with existing methods or changes that can be made in near future. 

Quote
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n
  • Posts: 13
liquidation strategy on folio
#12: May 29, 2016, 11:00:00 PM
Yes, it is true by gradually reducing the process of the entire portfolio you are selling your best notes first. Case in point, at a 2% mark-up, I was surprised to see a just issued note sell. So although in theory you might want to sell "everything", if you hang on to a note long enough to see it issued these days (a month or so), then they are probably one you don't want to sell (even at a 2% mark-up). I also have a "mature" portfolio to avoid discount issues when trying to sell notes within the last 5 payments if you will. When I reduce the price, I can see my higher interest loans go first (Cs in my case), leaving me with As & Bs. So I think it makes sense to try an parse them by grade as well. This will avoid having a portfolio of dogs in eye of the secondary market. Why not sell what you perceive as dogs?
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S
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liquidation strategy on folio
#14: May 31, 2016, 11:00:00 PM
.
OK stand by for a dumb question.

I was looking at selling out my Prosper notes as I now have an opportunity that just beta tested at 1/2% per week.

I have 1291 notes and started in 2012 most are $100 notes.

Dec-13-2012   B   740-759      Current   60   19   $42.72   18.82%
Feb-04-2013   B   800-819      Current   60   21   $45.60   17.47%

1) haven't LC/prosper lending rates been falling since these notes were issued,
2) maybe these FICO have gone up since being issues, but 700 was my floor to lend to.

Q.  Should stuff like this be easy to sell?

TIA

Clueless in Seattle.
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