I'm a couple of weeks late uploading my Lending Club Summary. These numbers reflect yesterday's balances and interest payments received. Pretty boring and consistent which I like.
I have been investing $25 at a time and now have 375 notes up from 310 notes last report. 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 6.65% after all defaults and past due loans have been written down.This return closely mirrors the predicted 6.68% return under the Platform Mix. Also, my monthly payments have increased to approximately $294.
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%
September --- 6.65%
Those are pretty solid returns. I would like to invest with them but LC is losing money and I don't know how much longer they will be around. I'm not sure about Prosper though but I imagine they could be in a similar situation.
ReplyDeleteCD,
DeleteHopefully LC sticks around for a while and more importantly hopefully the borrowers keep paying!
MDP
I've stopped buying new notes. Like Captain Dividend, I'm concerned about the strength of Lending Club as a company. So now I'm just hanging around waiting for my notes to be paid (or written of). For me, my Lending Club investment was an experiment. I enjoyed it, especially the auto-investing based on parameters you set. I wish you all the best and I hope Lending Club can get over the issues its been dealing with soon!
ReplyDeleteferdiS,
DeleteNothing wrong with your strategy. When I reach $10k I plan on just letting things ride. I may continue reinvesting the payments though.
MDP
MDP,
ReplyDeleteLending Club / Prosperity has interested me for a while as an experiment, just been lazy / unable to do it. Very nice growth there, and growth in general. I will probably continue to just stay with stocks though, to concentrate my cash (plus I have no downtime these days!).
I bet its great to have your portfolio back where you want!
- Gremlin
Gremlin,
DeleteThere are many ways to create passive income. There is certainly nothing wrong with a dividend stock only portfolio. LC is going to be a small part of my overall investment strategy. It is fun to play around with though!
MDP
I've also stopped adding notes. It's a combination of Lending Club's recent issues, the fact that it is taxed as income, and that it is essentially lending money to strangers over the internet. With a stock there is always the option to sell in an instant.
Delete