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Messages - AnilG

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Investors - LC /
« on: November 26, 2020, 12:00:00 AM »
I didn’t have much direct exposure to LendingClub and Prosper, no IRA, just regular accounts for myself and wife. It was always part of my play money allocation. At this point, I have withdrawn all cash from both LC and Prosper. Not interested in any other platforms. With what happened to Direct Lending fund, I am not willing to handover money to anyone promising certain return without me understanding drivers of that return, checks and balances in place, and proper due diligence. Majority of play money is now in individual stocks with some allocated to algorithm based trading and angel investing.

But I did quit job to work on PeerCube full time for few years so indirectly that was huge exposure to p2p social lending. I still believe in p2p social lending and in the original Prosper founder vision of auction style interest rate setting with proper guardrails and lender syndication. I am sure someone will figure out in the future how to make it work.
Investors - P / Expect Increased Supply of Notes
« on: October 12, 2020, 11:00:00 PM »
I doubt Prosper has a reason to pull the plug on retail platform yet. They could have done that when they accepted funding from private equity. I am sure they will be watching LC transition to banking closely.

The market is going to reverse it’s opinion on LC as bad earnings report come out next few quarters. LC is going into a very competitive segment with huge players like GS Marcus, Ally, JPM etc. LC has no moat in its new market to attract enough retail funding and be competitive with large players. I will give LC at most 3 years before plugs are pulled and sold for pennies.

from: macroman7799 on October 12, 2020, 09:42:57 PM
Investors - LC /
« on: October 10, 2020, 11:00:00 PM »
0.25% is not available to "all" Tom Dick or Harry but the ones with $25,000 or more account balance.

from: Fred93 on October 10, 2020, 04:57:01 AM
Investors - LC / Review of my lending club account
« on: September 17, 2020, 11:00:00 PM »
Couple of years ago, I had the same thought that LC will court retail investors when institutions bail and retail investors will come back when they can't find another attractive alternative (fixed income not generating anything, equity market very volatile).

But, I think retail investor wagon will not arrive at the LC station. Neither LC has any interest in bringing them back, they seem to be focused on getting retail funds through other indirect means such as banking, Nor retail investors are interested in tying up funds for 3-5 years without a way to redeem early.

But as you said, we will see.

from: Rob L on September 17, 2020, 10:43:38 AM
Foliofn - LC / Folio ending August 28th.
« on: August 26, 2020, 11:00:00 PM »
Is the institutional secondary market similar to Folio (listing loans, self service by institutions) or it is just someone at LC or 3rd party when approached by seller finds buyers? I recall few years ago there was a third party that was doing this with LC loans for institutions.

from: Fred93 on August 23, 2020, 05:18:24 PM
Investors - LC / Folio ending August 28th.
« on: August 09, 2020, 11:00:00 PM »
It is disappointing to see secondary market going away. Recently, I was looking into stats for FOLIO usage by PeerCube users. I was surprised to see PeerCube users placed 1 million orders. Service had captured almost 100,000 settled buy and sell orders. Hopefully, loan buying on LC primary platform increases so that I can continue to keep PeerCube running. Keeping my fingers crossed.

I learnt a lot from running the service as well as interacting with users on the forum and PeerCube. And, it got me interested into trading on financial markets.
Interesting topic of Risk Parity strategy using leveraged ETFs and discussion. I thought the group here might like it too.
Investors - LC / Value of notes beyond 120 days late
« on: July 25, 2020, 11:00:00 PM »
My old blogpost might give you some idea.

Lending Club FOLIOfn Secondary Market: Penny Note Strategy based on Lowest Ask Price

from: latitude42 on July 25, 2020, 01:00:14 PM
General Lending Club Discussion / LC Payment File Download Issues
« on: July 17, 2020, 11:00:00 PM »
Anyone else is having issues downloading payment files from Lending Club site? I am having issues downloading the file, the download always stops at ~895MB. Previously, the link was downloading 0 byte file. After I sent email to support, it seems the link was updated but I can't download the complete file. It is usually 1.6GB file.
Off Topic / Cash Parking
« on: July 07, 2020, 11:00:00 PM »
Foliofn - LC / Buying Notes at premium in current environment
« on: June 24, 2020, 11:00:00 PM »
Recently, I noticed that in my portfolio, as well as reported by peercube users, that notes are actually being sold at premium. I have hard time coming up with reasons why someone will buy notes at premium during current environment of pandemic, considering lending club has increased interest rates on new loans and tightened the credit criteria so new loans are likely to be higher quality than loans issued a year or two ago during better economic times. Most of these sold notes are tend to be from pristine repay on time loans but still ...

Any thoughts from those who are actively buying notes on secondary market, why would they buy notes on premium?
Investors - LC / Bonus payments for Note purchases
« on: June 02, 2020, 11:00:00 PM »
The article makes big claims without showing any supporting data and lot of detours. All assumptions made by writer were based on prior Q data with no change even though LC already mentioned they expect originations to be down 90% and laid off 30% of workforce. A better write up would have been based on projected cash flow, income and liabilities assuming originations declining 90+% and scaling down revenues, cash on hand, and savings in cost from already announced cost cutting measures.

Assume, if LC were to hunker down, without bringing any revenue, can they take out enough cost and has enough cash on hand to survive till end of 2021? This is the worst case scenario for LC.

from: latitude42 on June 03, 2020, 01:29:43 PM
Foliofn - LC / Goldman to buy Folio
« on: May 14, 2020, 11:00:00 PM »
What surprised me more is the acquisition price which most likely is less than 500M I expected Folio to be worth much more than 500M required for disclosure of purchase price.
Investors - LC / Simplified Ann ROI calculation
« on: April 07, 2020, 11:00:00 PM »
You should be able to calculate IRR using loan payment file.
Investors - LC / Recovery rate
« on: March 20, 2020, 11:00:00 PM »
Define recovery rate and you will get your answer. Net Recoveries / Remaining Principal makes better sense as Recovery Rate of Charged Off loans as you are using only data since charge off.
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