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Author Topic: The wind-down

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The wind-down
OP: June 15, 2021, 01:16:24 PM
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.
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i
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The wind-down
#1: July 01, 2021, 01:12:14 PM
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.
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The wind-down
#2: July 02, 2021, 12:55:31 PM
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%
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r
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The wind-down
#3: 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
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r
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The wind-down
#4: July 04, 2021, 01:51:52 AM
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.
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formerly rj2

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The wind-down
#5: August 04, 2021, 12:52:06 PM
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.
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« Last Edit: August 04, 2021, 01:00:14 PM by rj22 »
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The wind-down
#6: August 24, 2021, 11:27:10 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
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« Last Edit: August 24, 2021, 11:28:53 AM by lascott »