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The wind-down

Started by sean3.eth, June 15, 2021, 01:16:24 PM

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sean3.eth

I'm down to 88 active notes left on my Lending Club portfolio.  Would have been much much better off in the S&P 500 unfortunately, but it was still a worthwhile experience.

I opened my account in January 2014.

investor70

All in, about 16% of your notes ended up charge off. That seems high. What grade notes was your portfolio concentrated in if you don't mind me asking.

sean3.eth

Overall, on the riskier side for sure.

A: 13.5%
B: 10.5%
C: 23.0%
D: 21.6%
E: 18.8%
F: 7.1%
G: 5.5%

rawraw

If you wanted to beat stock returns using consumer debt, that was never a winning beta unless you planned to use leverage.   I am happy with my Lending Club performance, but I used it instead of bonds

rj22

I am down to under 15 notes but it'll be a year before those play out, and I'm still seeing recoveries.

As for the return, I ended up with about 5% overall. Not enough in my opinion. It was an interesting experience though. But given how hard (impossible) it is to liquidate a lending club portfolio the return ought to have been more -- if I had held a bond portfolio instead I could have liquidated it very quickly by selling to someone else But with LC you're really locked in for years.
formerly rj2

rj22

#5
I am down to $20 in outstanding principal across six notes that represent three underlying loans (bought the same loan multiple times on folio). Still getting a couple bucks a month from them, and a couple bucks a month from recoveries.

Gonna have to decide at what point just to call it quits and lose what's left on the table. It's in an IRA, there are fees to transfer out, so those last few loans are blocking me from getting the rest of the accrued cash out. I have a chunk of cash un-invested and losing out on other opportunities.

Presumably the point to transfer is when the lost interest from a high interest savings account exceeds the ongoing payments from loans and recoveries. Depending on how recoveries are doing, that  point may come in two months when most of the remaining loans will be paid off, and it'll just be one loan plus recoveries.
formerly rj2

lascott

#6
Quote from: rawraw on July 03, 2021, 08:18:29 AM
If you wanted to beat stock returns using consumer debt, that was never a winning beta unless you planned to use leverage.   I am happy with my Lending Club performance, but I used it instead of bonds

Bonds were my philosophy as well and used it as that part of my 'asset alloction'. https://debanked.com/p2pforum/index.php?topic=3221.0

My biggest regret was getting into 60 month notes after holding out for the longest time and only doing 36.

Overall I am pretty satisfied and feel fortunate it didn't go worse with all that transpired at LC.

Both my accounts ended up about a 13% charge off rate.

My 1099-OID acct:
Interest $67,640.47


My ROTH IRA acct:
Interest $55,504.47

rj22

My account is now over 99% cash, with only a few trivial holdings left, but I have not yet transferred my IRA out because LC's recoveries continue to throw off more cash than I would earn by moving my IRA balance to a high interest savings account. So I am treating it as a cash balance.

Probably that'll change soon.
formerly rj2

lascott

One of my 3 remaining accounts was paid off in 7/2020 but still shows as open.

I called today to ask about it and they just called it a glitch.  When my other 2 notes get paid off and disappear from my list I'm wondering what pain-in-the-butt issues having this one open will cause ... meaning having to sign things saiding I will forego payments from it ... since it is open.

Any others run into this?


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