My WAAR is 16.2. Here is my Understanding returns:
http://screencast.com/t/9v6QQrWX. My ANAR was 11.24% and now it is 10.17%.
Yes, I have more available cash now because supply has been low. Normally, I have from $0 - $90 on hand and now it is about $250. There was a time about a week ago that my available cash went above $400 so, maybe that is affecting the numbers but I have a mature account with about 50% of it invested in 36 month loans...
But this is the biggest ANAR drop in the shortest time since I have started. I am wondering if anyone else is seeing the same thing in their numbers.
I actually expected this to happen after LR departure.
On one hand, a lot of people in this forum worried about BRV, the loss of institutional money, and investors' fire sale on Folio.
On the other hand, I have been worried about borrowers that might have funny ideas to not making payments anymore.
Cash drag is not factored into the ANAR calculation. Yes, my ANAR has gone down in the past month, but not quite that much. Hard to say if LC is just writing off a bunch of bad loans, or the underwriting is faltering, or the economy is tanking.
You can bump up your NAR by adding cash to your account and buying new loans. More current and recent loans you have in your portfolio, higher the NAR. You can reduce your NAR by not re-investing monthly payments from existing loan in new loans or proceeds from sale of existing notes on secondary market at par or discount. Your portfolio NAR will decline as loans move toward terminal state of fully paid or charged off.
Yea, I don't think I've seen anything that people stopped paying their loans to banks during the crisis just because they were in trouble. But maybe it does occur
I had more "in grace period" than usual the past month. Perhaps more people moving, leaving school, etc and changing banks as a result? I haven't looked up the numbers. Was 8 in grace a few days ago, now 2 caught up and it's down to 6. And my ANAR went from 9.5% to 9.9% at the same time. ANAR seems to be very sensitive to loans in grace -- I don't remember how much those are discounted by the adjustment, but it doesn't take much to affect the overall ANAR (the first A being Adjusted).
Following up what anabio said, is how some notes on the same pay schedule will go into IGP, while others do not. Curious on why that is.
Yes, since noticing the prompt passage to Grace status I've been trying to hold off on listing them for sale until the usual date of actual payment settling has passed. For example, a note due on the 20th has habitually paid on the 24th or 25th.
Would be curious to know about this as well.
People can't manage their credit, somehow know who was CEO of LC and that CEO was kicked out and then decided to stop make payments on their loans.
Hack, I did not even know LR was kicked out until I checked this Forum.
Agree with Fred. I am in the process of analyzing data for a project on straight rollers. My early impressions are that the problem is not as severe as some lenders seem to portray. Also, based on the recoveries after charge offs from such loans, I will assume that Lending Club takes such charge offs very seriously. Some of the recoveries are eye-popping, LC recovered not only the original amount lent but also accrued interest and penalties. I don't know yet how much of such recoveries trickle down to lenders but I am inclined to revise my assumptions of recoveries being inconsequential.