We'll all get another look under the hood of LC next Monday.
Current stock price is $5.07 so there doesn't seem to be anticipation of great things. Guess we'll see.
FWIW here's the links to the earnings release and the LC presentation.
Stock has moved up about 5% (at this time) on the news.
Banks funded 44% ($944M) originations for the quarter.
http://ir.lendingclub.com/Cache/1001226606.PDF?Y=&O=PDF&D=&fid=1001226606&T=&iid=4213397http://ir.lendingclub.com/Cache/1001226609.PDF?Y=&O=PDF&D=&fid=1001226609&T=&iid=4213397
Interesting number from retail lending perspective is originations $276M in Q2 vs $297 in Q1 for self-managed individuals. A decline that seems to echo what forum has been talking about liquidating their portfolios. Even managed accounts are not growing that much, little over 1%.
Time to abandon calling this segment P2P lending and Marketplace lending. A better term now for the segment might be online loan brokers. Finally segment got assimilated into doing the things old fashioned way.
i still believe all the good loans are going to the banks first, and we're left with the scraps, which is why all individual investors are leaving.
There is a Whole vs. Fractional flag in the historical data files. Around 12mo ago, I checked if interest rates and default rates were different for whole loans vs. fractional loans - they weren't. Perhaps this has changed over time.
Banks return on assets was an annualized 4% last quarter, so banks don't need to be getting the cream of the crop for Lending Club's average loan to look favorable compared with most bank assets.
I still will never understand this narrative. What is a good note? What makes a bad note? Your interpretation will most likely not be the same as another's.
If they are bad, why would anyone invest in them? Because there is nothing else to invest in?