P2P Lending / NFT Lending Forum

Lending Club Discussion => Investors - LC => Topic started by: mo on May 26, 2016, 11:00:00 PM

Title: liquidation strategy on folio
Post by: mo on 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/
Title: liquidation strategy on folio
Post by: Rob L on May 26, 2016, 11:00:00 PM
Quote"> from: sommers on May 27, 2016, 05:35:44 PM
Title: liquidation strategy on folio
Post by: sommers on May 28, 2016, 11:00:00 PM
from: Rob L on May 27, 2016, 07:16:28 PM
Title: liquidation strategy on folio
Post by: TravelingPennies on May 28, 2016, 11:00:00 PM
from: sommers on May 29, 2016, 07:16:55 AM
Title: liquidation strategy on folio
Post by: AnilG on 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
Title: liquidation strategy on folio
Post by: rubicon on May 28, 2016, 11:00:00 PM
from: sommers on May 29, 2016, 07:16:55 AM
Title: liquidation strategy on folio
Post by: BruiserB on May 28, 2016, 11:00:00 PM
Quote"> from: sommers on May 27, 2016, 05:35:44 PM
Title: liquidation strategy on folio
Post by: TravelingPennies on May 28, 2016, 11:00:00 PM
pretty sure these two strategies are logically equivalent.
Title: liquidation strategy on folio
Post by: TravelingPennies on May 28, 2016, 11:00:00 PM
from: AnilG on May 29, 2016, 01:52:07 PM
Title: liquidation strategy on folio
Post by: TravelingPennies on 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
Title: liquidation strategy on folio
Post by: TravelingPennies on May 29, 2016, 11:00:00 PM
from: BruiserB on May 29, 2016, 08:40:23 PM
Title: liquidation strategy on folio
Post by: TravelingPennies on May 29, 2016, 11:00:00 PM
from: AnilG on May 30, 2016, 12:05:30 AM
Title: liquidation strategy on folio
Post by: nmay2k on 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?
Title: liquidation strategy on folio
Post by: TravelingPennies on May 29, 2016, 11:00:00 PM
from: nmay2k on May 30, 2016, 10:12:29 AM
Title: liquidation strategy on folio
Post by: SeattleSun on 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.
Title: liquidation strategy on folio
Post by: nmay2k on May 31, 2016, 11:00:00 PM
Not familiar with prosper, but B loans are usually not high in demand, so I say not so easy to sell. The rates does not fall, it is the pennies of interest each month that goes down. Smaller principal means a smaller interest but the rate did not change.

When you get near the end of the loan (less than 12 payments)...let's say there are 6 payments left. The yield looks like it halved because there are no longer on an annual basis. APR is an annual rate, what you get in the next 12 months. If there are only 6 months of returns in the next 12 months, it looks like half the yield of the same loan with 12 months or more. So a 12% rate looks like a 6% yield when there are 6 payment left (but the rate really did not change). If you try to sell this with a 7% mark-up, LC won't let you.  If you have a loan with 3 payments left, and it has a 2% yield and you attempt to sell with a 3% mark-up, it won't let you. So there are loans that I put in the "mature" bucket that you cannot apply your blanket mark-up.
Title: liquidation strategy on folio
Post by: Rob L on May 31, 2016, 11:00:00 PM
from: nmay2k on June 01, 2016, 08:34:52 AM
Title: liquidation strategy on folio
Post by: SeattleSun on May 31, 2016, 11:00:00 PM
Quote"> from: SeattleSun on June 01, 2016, 01:04:07 AM
Title: liquidation strategy on folio
Post by: FILTER on June 01, 2016, 11:00:00 PM
Quote"> from: SeattleSun on June 01, 2016, 01:04:07 AM
Title: liquidation strategy on folio
Post by: AnilG on June 01, 2016, 11:00:00 PM
The attached Screenshot from https://www.peercube.com/folionotes/detailed_pricing might help you. It shows markups for 2013 Vintage B Grade Current Loans listed on Lending Club Folio platform. I expect premiums might be much lower on Prosper Folio platform as it is not that active.

from: SeattleSun on June 01, 2016, 12:11:17 PM
Title: liquidation strategy on folio
Post by: TravelingPennies on June 01, 2016, 11:00:00 PM
from: AnilG on June 02, 2016, 02:32:12 AM