Recovery rates broken down by credit grade?

[flyp52]

Does anyone know if any of the statistics/analysis sites can produce a Recovery Rate by Loan Status chart similar to the one at Lending Club https://www.lendingclub.com/info/statistics-performance.action" class="bbc_link" target="_blank">https://www.lendingclub.com/info/statistics-performance.action, but broken down by Credit Grade also?

Thanks.

[AmCap]

The short answer is not really. There was extensive discussion of that issue in an earlier post on the FMV of distressed notes.Search FMV and you should find it.

[rev]

flyp52,

I have created a Rollover Report that has a different purpose, but may answer the question you asked.
http://www.interestradar.com/rollover" class="bbc_link" target="_blank">http://www.interestradar.com/rollover

What you're interested in is the blue table, with the loans in a Late status that went back either to Current or Fully Paid or Payment Plan; or loans in Default that went back to Current/Fully Paid/Payment Plan or also Late (sometimes the pay but still stay behind).

A word of warning: a single loan may become late and current and late and current several times in the course of its life. The chart I present is the total roll rate, i.e., the average chance you have that a loan will go late, regardless if it was never late or not. In the future I may add filters to show "never late", "late once" etc.

[TravelingPennies]

Right but rev, as I think we wrestled with earlier, LC doesn't give us data on how much is actually recovered on a distressed noted that survives (i.e., isn't charged off).  Put another way, just because a distressed loan goes current doesn't tell us much about how much is ultimately recovered...

[Zach]

https://forum.lendacademy.com/index.php?topic=605.msg2426#msg88888888Quote"> from: rev on January 04, 2013, 06:04:47 PM

[william]

I think it's because the chart at LC is a very small sample size between April-October 2011

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=605.msg2432#msg88888888Quote"> from: william on January 04, 2013, 09:56:17 PM

[TravelingPennies]

I think their numbers are accurate. When you look at all notes that were once Late 31-120 and check their CURRENT status, 53% of them are current or paid off.
What you read in my chart is that, in average, if you have X late notes in your portfolio, you can expect 11% of X to become current every month, and 89% to stay late or default/charge off.