P2P Lending / NFT Lending Forum

Hey team - looking for you guys to weigh in. What's the community consensus on a benchmark return. Give me insight on your reasoning,  if possible.  I am not gonna be more specific just yet.

Would you mind sharing the filters you're using?  You can load your strategy on the analysis page and then copy and paste the permalink.

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I admire NJGuy for making a go of it with his distressed note / folio-based strategy.  I can tell you that it can be profitable if you know what you're doing.  I still have concerns about scalability, as well as the lack of predictability in the secondary market's liquidity (put another way, I got burned pretty bad when things slowed to a halt at the beginning of the year). 

https://forum.lendacademy.com/index.php?topic=1386.msg9946#msg88888888Quote"> from: core on July 29, 2013, 01:17:54 PM

I don't want to weigh in too heavily here, but if I can just make the larger point that folks forget that all of the LC universe seems focused on the very smallest fraction of LC notes that are available.  I see that in 2013, there have been 66,027 loans that LC has issued: assuming by "good notes" people mean E-G 400+, the number issued is 1,302.  Less than 2%.  Filters more restrictive than IR01 alone will yield even less. 

I really think we all should take Peter's post to heart and re-evaluate our expectations.  Unless users of other auto-invest services would like to weigh in, I think it's pretty unreasonable to target the same 2% of notes everybody else wants and be surprised to be shut out of them.  We may need to open some filters up...look at higher rated notes.  Maybe a B note won't kill us (that is, you'll still get better yield than a lot of debt instruments available).  Expanding the "good note" universe to C and D notes expands the number of issued notes by a factor of 10. 

I don't think I agree.  As a securities matter, the only thing LC has told us about the risk of a note is their assigned letter grade.  If it is true that, within notes that LC has told us should have equal risk characteristics,  the notes offered only to large investors are less risky, I have to think that's a disclosure item.  I agree that it may be too early to make any broad conclusions, though.

Well wouldn't we want that disclosed...that the loan failed to sell as a whole loan?

Congrats to Peter and Bryce on the mentions! 

Boneheaded quote of the day comes from the Indiana securities commissioner: ""But there are limitations on the financial data that is available, and a chance of default, so we need to protect investors."

Limitations on the financial data available...http://weknowgifs.com/wp-content/uploads/2013/07/minion-gifs-2.gif" class="bbc_link" target="_blank">right.

Where exactly do they think IR01 and IR04 come from?

Hey are any of you folks going to be in NY for the conference (or in NY generally)?  I can't make the conference but I am going to try to make the meetup scheduled for tomorrow at Goodwin Proctor.  It'd be nice to match a face.to a screenname. :-)

Like any securitization, LC's structure makes yields more attractive relative to risk in a lending situation because it provides diversification and liquidity.  This structure then encourages more people to lend, as we've seen over the last 6 months.  At what point does the borrower side of the benefit come in via lower cost of borrowing.  Part of the rationale for securitization in other contexts is that, as lending into the structure becomes more attractive and more lenders enter to market, interest rates should drop because of the increased supply of money.

When will LC get there?  At some point, to meet the demand on the investor side, aren't they simply going to have to lower yields to entice more borrowers to borrow?

Yeah when you buy distressed notes you take the risk you can't resell them...a lot of those notes I flipped for a pretty good return, but for some of them I got left holding the bag.

Yeah I'm not a fan at all.  The option to view the full site is circular, since it takes you right back to the mobile version when you go to see your account.  Grr....

All - is anybody else being credited with a boatload of recoveries today?

What is your tolerance level for premiums on relatively young notes - I know there's been previous discussion on this but I can't recall the sense of the body...