Tag Archives: finance

#LendingClub investment vs. the market 2015

Just a data point – started on Lending Club in October 2013. Now up to 258 notes, adjusted return rate is down to 13.73% from twenties a year ago, but that was expected. I have an aggressive approach, only invest in E-F-G-grade minus some urban legends like never loan money to people in Nevada : )

From those notes, 13 are in default/charge off, 42 have been fully paid – assuming only pre-payment at this point (2 years), and I wonder if it hurts the APY? Since those people paid early, do I get the interest for 3 or 5 years? Guess not. But again, the biggest problem so far is the lack of liquidity – if I had a need for that money, it would not be easy to get it back before the 3/5 year term.

2 years into it, seems like a good way to make 10%+ on your investment. No idea how this will hold up in case of a downturn, people getting fired and defaulting on their loans. With SPX on track to return near a big fat 0% for the entire year 2015, LC looks like a good place to park some cash. However, a sales/support guy from LC called me once out of the blue, and started throwing some unexpected trivia and advice at me like not investing more than 10% of your portfolio in them. Yes, that was their sales person, and right at the time when I was considering moving more money into that account.

More updates will follow on this page.

Investment offtopic

Had some idle cash lying around, split it evenly between FLCSXFSCRX and DFFVX. Let’s see what happens. Things look pretty bloated by now, bound to come down hard at some point in the near future. Until then…

FLCSX Matthew Fruhan (Started: May 2, 2005)
FSCRX Charles Myers (Started: Mar 14, 2006)
DFFVX Stephen Clark (Started: Mar 29, 2008)