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Author Topic: Origination Spike for LC

d
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Origination Spike for LC
OP: March 19, 2013, 11:00:00 PM
Can anyone tell me why origination spike at the beginning of the month for LC? Seems that the 5th is a hot spot.

http://www.nickelsteamroller.com/chart/combined/issued#daily

dontknow
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L
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Origination Spike for LC
#1: December 31, 1969, 07:00:00 PM
There's a big funding spike on the 1st - 3rd of each month, so my guess is that's the freshly funded loans issuing.
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Origination Spike for LC
#2: December 31, 1969, 07:00:00 PM
The main reason for the spike is that LC Advisors puts a great of new money to work in the first days of the month. They are owned by Lending Club and are by far the largest investor - I think they are up to around $400 million in total loans invested in now.

Also, other hedge funds like to invest early in the month to reduce the cash drag for their investors.
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