Title: Loan Availability by Initial Listing Status, 17Q3
Post by: Rob L on February 10, 2018, 11:00:00 PM
Post by: Rob L on February 10, 2018, 11:00:00 PM
Considering LC's IRA bonus offer I wondered if I were to swear off the high interest rate stuff and stick with A grade only notes if there would be enough loans offered to be able to invest $100k before the end of the investing deadline of June 30. So, I downloaded the most recently available vintage (17Q3) from LoanStats and took a look. My preference is 36 month term. I never invest in loans with an initial listing status of "whole" since these have been passed over by the institutions and they're way smarter than me.
There are almost no 60 month loans that are not offered as whole before moving to the fractional market. For 36 month term I found that about 5 out of every 6 A grade loans are initially listed as whole. Wow! If I were to buy half of the 3021 A grade loans initially listed as fractional at $25 per note my investment would only be about $38k. Moving to B and C grade loans about 3 out of 4 are initially listed as whole. I would have to buy notes in about 40% of all A and B grade fractionals to invest $100k. Considering I'd like to be a bit more selective than that, my note size would have to be much larger (probably $100) for this to be workable. I won't be pursuing this strategy.
There are almost no 60 month loans that are not offered as whole before moving to the fractional market. For 36 month term I found that about 5 out of every 6 A grade loans are initially listed as whole. Wow! If I were to buy half of the 3021 A grade loans initially listed as fractional at $25 per note my investment would only be about $38k. Moving to B and C grade loans about 3 out of 4 are initially listed as whole. I would have to buy notes in about 40% of all A and B grade fractionals to invest $100k. Considering I'd like to be a bit more selective than that, my note size would have to be much larger (probably $100) for this to be workable. I won't be pursuing this strategy.
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: SLCPaladin on February 10, 2018, 11:00:00 PM
Post by: SLCPaladin on February 10, 2018, 11:00:00 PM
Very interesting Rob, thanks for sharing. I wasn't aware that retail investors get sloppy seconds (e.g. whole loans that institutions don't want). Talk about adverse selection. Thanks for enlightening me.
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: TravelingPennies on February 10, 2018, 11:00:00 PM
Post by: TravelingPennies on February 10, 2018, 11:00:00 PM
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: jd on February 11, 2018, 11:00:00 PM
Post by: jd on February 11, 2018, 11:00:00 PM
Quote
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
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Title: Loan Availability by Initial Listing Status, 17Q3
Post by: mrwhizzard on February 11, 2018, 11:00:00 PM
Post by: mrwhizzard on February 11, 2018, 11:00:00 PM
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Post by: TravelingPennies on February 11, 2018, 11:00:00 PM
Title: Loan Availability by Initial Listing Status, 17Q3
Post by: macroman7799 on December 03, 2020, 11:00:00 PM
Post by: macroman7799 on December 03, 2020, 11:00:00 PM
It's been slim pickings. I have a hard time finding homes for what my $13,000 account throws off. I wouldn't even want to think about managing $100 K. I would probably resort to buying $100 lots. With LC on the verge of shutting down retail I'm sure most people could give a wit.