Can anyone tell me why origination spike at the beginning of the month for LC? Seems that the 5th is a hot spot.
http://www.nickelsteamroller.com/chart/combined/issued#dailydontknow
There's a big funding spike on the 1st - 3rd of each month, so my guess is that's the freshly funded loans issuing.
The main reason for the spike is that LC Advisors puts a great of new money to work in the first days of the month. They are owned by Lending Club and are by far the largest investor - I think they are up to around $400 million in total loans invested in now.
Also, other hedge funds like to invest early in the month to reduce the cash drag for their investors.