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Messages - SMWinnie

Investors - LC / New Platform
« on: December 31, 1969, 07:00:00 PM »
Well I, for one, love the new interface.

The landing page used to show me how much interest I have been paid and how much principal I have written off or down. Now I need to bounce from screen to screen to see that 71.4% of my interest has been burned off through writeoffs and writedowns.

Also, since the sortable list of notes no longer displays portfolio, I'm saving the time I used to waste characterizing loans as troubled, re-performing, etc. That should be a real time-saver!
Investors - LC / Lending Club Collection Actions
« on: May 25, 2017, 11:00:00 PM »
Apologies if I missed this, but does Lending Club provide any summary data on whether/when/how often it pursues defaulting borrowers and recovery rates?

I'm wondering if LC is starting to get a larger proportion of borrowers gaming them by borrowing before a planned default. It would be nice to see if default after 0/1/2 payments has increased through 2016 and into 2017.
Investors - LC /
« on: March 03, 2017, 12:00:00 AM »
Link to a nice explanation for why a time-weighted rate of return can be negative for a gain or positive for a loss.

The basic idea is that time-weighted rates of return abstract away from account size. Put another way, a time-weighted rate of return presumes that you had the same amount invested at all times. If, for instance, one has good returns on a relatively smaller amount of money and then bad returns on a larger amount of money, one might have a dollar loss with a positive rate of return.

OP (mrwhizzard) indicates a single deposit. If there were no withdrawals and no Folio purchases, then my guess is that: (1) OP's portfolio had modest gains; (2) OP reinvested the gains; and (3) OP's portfolio then suffered losses on the larger balance that more than offset the original gains.

Here's a quick, extreme hypothetical for illustration:
  • Invest $1000.
  • Portfolio doubles in first year.
  • Portfolio loses 55% in second year.
  • New balance is $900 for a 10% loss...
  • ...but the time-weighted rate of return is a little over 20%.
LC's discussion of their formula suggests a couple of other anomalies, but the formula basically looks sound. It accounts for the real cash flows, including LC's fees, and excludes accrued interest.
Investors - LC / Worst Month Yet
« on: November 29, 2016, 12:00:00 AM »
New "investor" here. I started an account with $8K of mad money about a month ago as an educational project. I wanted to see what a passive source of funds would experience, so I let LC auto-invest for me evenly split A/B/C/D.

I thought I would share the experience here, since this isolates mid-to-late October issuance. First month quality:

165  issued notes
  3  notes paid in full in first month
 22  notes have not reached 1st payment (or are processing/current)
  7  notes IGP

So, payment on 7 of the 140 notes which have come up on their first payment date failed.

Collection logs indicate most were NSF, but a couple of the logs showed no entry for the type of payment failure. One collection log is completely blank.