Lending Club Update – February 2013

Lending Club Update

It’s been six months since I last updated the performance of my (dwindling) Lending Club portfolio. As a reminder, we’re in the process of winding down our holdings there. We’re down to less than $700, from roughly $10k at the peak.

It’s been awhile since I’ve updated our Lending Club performance so I thought I’d share some details. As you may be aware, we’ve been winding down our holdings there, though we still have a decent chunk of money there (around $2k) and it’s still performing reasonably well.

Last August our portfolio looked like this:

  • 202 loans are current
  • 205 loans have been paid off
  • 0 loans are currently 16-30 days late
  • 11 loans are currently 30-120 days late
  • 34 loans have defaulted and/or been charged off

and our net annualized return (NAR) stood at 7.1%.

As of now, our portfolio looks like this:

  • 110 loans were current
  • 295 loans had been paid off
  • 1 loans were currently 16-30 days late
  • 6 loans were currently 30-120 days late
  • 40 loans had defaulted and/or been charged off

with a current NAR of 6.7%.

So our returns are continuing to slip and our defaults are continuing to mount, but 6.7% isn’t too shabby, especially when you consider that I’ve pretty much ignored our portfolio for the past two years.

What about you? If you’ve been investing with Lending Club, how are things going? When reporting your results please be sure to give us an idea of how many notes you’re holding and how long you’ve been at it.

7 Responses to “Lending Club Update – February 2013”

  1. I should also note that the stated NAR is a bit of an overestimate since it doesn’t account for things like idle cash. I’ve run these numbers in the past, and it typically shaves a few tenths off the NAR. Still a decent number, but not quite as high as advertised.

  2. Anonymous

    Re: “Too much of a time sink”

    I imagine Lending Club will have a feature someday to auto-invest for you. At that point, lending with them will become dramatically more passive.

  3. Anonymous

    Why are you dwindling down your holdings? Is it the losses or potential for more losses that would lower your current rate of return? Or is it just the time to track these investments?

  4. Anonymous

    Hi there. Looks like you have had quite the run with Lending Club, and you’re right – 6.7% is nothing to sneeze at. I’m on the other side, just getting started. Did you use any of the statistics tools like those offered at NickelSteamroller? I think those are helpful to find borrowers who are less likely to default.

    It’s great to read an article cataloging an exit from Lending Club. Most of the ones I read these days are people getting in.

  5. Anonymous

    Thanks for the update. It seems even with a lot of charge offs you still get a decent NAR. I was concerned it would happen but it seems like if you diversify you’ll still likely beat the nonexistent savings interest rates of today.

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