Wednesday, August 31, 2016
August 2016 Lending Club Update
I have been investing $25 at a time and now have 310 notes up from 263 notes last month. I am continuing to use the automated note selecting mechanism which lets the computer spread the capital across a variety different loan grades.
Right now as you can see above, my current return is 6.33% after all defaults and past due loans have been written down. Last month my return was 6.77% which closely mirrors the predicted 6.68% return under the Platform Mix. Also, my monthly payments have increased to approximately $242 up from around $206.
The returns continue to bounce around like a pinball as notes are written down when they become past due. If and when the notes are made current, the return adjusts upward as expected.
As mentioned last update, I have seen the returns as high as 9% and as low as 3%. It tends to stay around 7% most of the time.
I will continue to invest $200 a week until I reached $10,000. At that point I will probably continue investing new capital, but may stick with higher credit borrowers.
2016 Net Annualized Returns
July --- 6.77%
August --- 6.33%