I'm gonna run this for 23 days, which I presume makes it end on Apr 30. I will end it sooner if LC raises rates before then.
I replied June 16-30, just after the FOMC meeting June (13-14).
If I remember the last time LC raised rates was just after a FOMC meeting when they raised the Fed Funds rate.
Did they raise rates after the most recent rate hike?
I think raising rates will have little to do with the Fed and more to do with supply/demand competition, etc.
I'm having a case of "poll respondent's remorse" not unlike "buyer's remorse" without any real money involved.
Sure, the Fed has raised it's funds rate, but Treasury bills, notes and bonds of all duration's have dropped to pre-election yields.
For interesting reads see:
https://www.advisorperspectives.com/dshort/updates/2017/04/17/treasury-snapshot-yields-down-to-november-levelshttps://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2017We live in interesting times and this seems to be one of those moments.
Animal spirits appear to be dying. The Fed seems to be "pushing on a string" (a phrase from days gone by).
I'll be surprised if LC raises rates before 10 Year Treasury Notes close at a new 2017 high (yield that is).
However, I'm also surprised LC is able to find lenders at current rates so go figure. I'm not one of them.
I spent a few minutes on the wayback machine to try to find the index, but couldn't. Perhaps I am misremembering or just can't locate the right historical page.
That is it! Thanks for finding it. I know I've noticed anecdotally Lightstream and other bank consumer lenders increased their rates. But bank deposits haven't moved much yet
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This may be a stupid question, but for the "average" person where FDIC limits are not an issue, is there any reason to look at T-Bills vs the 1.05-1.25% online savings accounts? I'm assuming there is nothing really that could really happen to the trade value in 1-3 months that would make them a selling opportunity right? I've been shifting more money out of stocks lately as I've been taking some profits and I just haven't be able to get myself to put them in any bond funds and nothing else seems worth it over the online savings rates lately.
Thanks.
"The starting point for base interest rate is the middle of the spread between
the interest rate for unsecured consumer credit as published in Federal Reserve Board Consumer Credit G.19 Release and
the average interest rate for 6-month certificates of deposit as published in Federal Reserve Board Selected Interest Rate H.15 Release."
An old blog post detailing how Lending Club sets rate.
Lending Club Base Interest Rate - Excess Lending Capital Supply
http://andirog.blogspot.com/2012/06/lending-club-base-interest-rate-excess.html
G.19 never contained a series with words "unsecured consumer credit". You need to look for Credit Card Plans Account Assessed Interest line. H.15 discontinued CD Rates in December 2013.
IMO it was a genius move on the part of Lending Club to use midpoint between these two interest rates as starting point for the LC interest rate. At that time LC was marketing to attract people carrying credit card debt as borrowers and peoples saving in Banks/CDs as lenders. This strategy made LC interest rates more attractive to both groups and easy to understand.
As LC has moved on to primarily Banks and large Investment Funds as lenders, LC may have switched from CD Rates to 2-5 years Treasury Securities.
From
https://www.federalreserve.gov/feeds/h15.html
3 month brokered CD's at Schwab running at .95% for Bank of China last week.
Moving alot of money out of Ally Bank Demand Notes as I am becoming concerned with their subprime auto loans and the declining value of used cars.
Not a total panic but I am moving money out
Looks like May 1-15 won the poll!