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Messages - LendingAlpha.com

#1
The new partnership between LendingClub and Alliance Partners increases brand awareness, increases loan volume, and decreases borrower acquisition cost.
  • BancAlliance's members stretch across 39 states, and combined would rank fourth in branch count among all U.S. banks, and 14th in assets.
  • Alliance Partners will co-brand loans at its banks as well as invest in certain loans (presumably lower graded/risk loans).
  • This partnership provides an additional loan origination channel for unsecured consumer loans that increases loan volume and decreases the acquisition cost per borrower.

It looks like small community banks are on LC's side. The battle is really just against the traditional big banks:
http://si.wsj.net/public/resources/images/MI-CH718_LENDIN_16U_20150208161807.jpg" class="bbc_link" target="_blank">http://si.wsj.net/public/resources/images/MI-CH718_LENDIN_16U_20150208161807.jpg

https://lendingalpha.com/blog/2015-02-09-lending-club-partners-with-alliance-partners/" class="bbc_link" target="_blank">https://lendingalpha.com/blog/2015-02-09-lending-club-partners-with-alliance-partners/
#2
Investors - LC / LC lowers rates gain
February 06, 2015, 11:00:00 PM
There probably won't necessarily be more purchases, but prices are supposed to be higher in the secondary market for pre-February 4 notes.
#3
Investors - LC / LC lowers rates gain
February 05, 2015, 11:00:00 PM
I stand correctly on the lower rates and higher default rates (as modeled by LC). Upon further review of the new interest rates and LC's blog posts of expected charge off rates, it's clear that the move was an investor returns squeeze. Granted, they can do this since they continue to have an imbalance of investor-to-borrower ratio.

https://lendingalpha.com/blog/2015-02-06-lending-clubs-investor-returns-squeeze/" class="bbc_link" target="_blank">https://lendingalpha.com/blog/2015-02-06-lending-clubs-investor-returns-squeeze/

https://lendingalpha.com/wp-content/uploads/Investor-Net-Returns-Squeeze-2015-02-04.png" alt="" class="bbc_img" />

http://ir.lendingclub.com/Cache/c27458795.html" class="bbc_link" target="_blank">http://ir.lendingclub.com/Cache/c27458795.html
http://kb.lendingclub.com/siteupdates/articles/Site_Updates/Updates-to-Interest-Rates-and-Expected-Charge-Off-Rates-Effective-Feb-4-2015" class="bbc_link" target="_blank">http://kb.lendingclub.com/siteupdates/articles/Site_Updates/Updates-to-Interest-Rates-and-Expected-Charge-Off-Rates-Effective-Feb-4-2015

The biggest relative impact was for the A and B grade investors. The weighted-net return is now at 7.10%, down from 7.46%  according to LC's models. If I have to guess, the trend of squeezing returns from investors will continue until they have a balance between investor vs. borrower dollars. In addition, changing market interest rates (Fed) and default rates (economic change) will also adjust the loan interest rates in the future. For now, changes due to the investor squeeze is still on the table, especially given how quickly they made the change since the last time (October 29, 2014).

Also a comment on this lose-lose situation for the investors: The attractiveness of this investment vehicle is confirmed by the high investor imbalance relative to borrowers. This is because investors continue to acknowledge the high returns relative to the risks (and free diversification of risk). Though the future expected net returns are lower, it is still an attractive investment vehicle for investors.
#4
Investors - LC / LC lowers rates gain
February 04, 2015, 11:00:00 PM
Here's an analysis of the interest rate changes and its implications:
  • Lower rates across low and medium risk loans (A/B/C). The change had the largest relative impact on A3-B5 loans.
  • Higher rates for D loans
  • Lower rates for E loans, but impact relative to net return is lower.
  • Same rates for F&G loans

More commentary here:
https://lendingalpha.com/blog/2015-02-05-lending-club-interest-rate-changes/" class="bbc_link" target="_blank">https://lendingalpha.com/blog/2015-02-05-lending-club-interest-rate-changes/

https://lendingalpha.com/wp-content/uploads/Interest-Rate-Changes-2015-02-04.png" alt="" class="bbc_img" />
#5
Investors - LC / Lending Club failure
March 18, 2014, 11:00:00 PM
During the 2pm refresh cycle, LC's servers broke and now the website fails to show any loans. Therefore, nobody is able to allocate to new loans, let alone check any of the new ones. Does anyone else see this problem?