Author Topic: Shortage of Lending Club notes  (Read 2473 times)

Cc15gec

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Shortage of Lending Club notes
« on: September 30, 2015, 06:18:24 PM »
Over the last couple of weeks, I've noticed a huge shortage of available Lending Club notes to invest in. Any other investors notice the same thing? Does anyone know what the deal is?

Jack

  • Magnum Stache
  • ******
  • Posts: 4725
  • Location: Atlanta, GA
Re: Shortage of Lending Club notes
« Reply #1 on: September 30, 2015, 06:41:44 PM »
Could be supply and demand: in order to increase the number of notes, Lending club would have to decrease interest rates to attract more borrowers. But if they do that, investors won't invest. Worse, investors might decide the whole scheme is a bad idea, causing long-term damage to the brand. Therefore, Lending Club would probably prefer to turn away investors via a shortage rather than via unattractive notes.

AM43

  • Stubble
  • **
  • Posts: 166
Re: Shortage of Lending Club notes
« Reply #2 on: October 01, 2015, 07:05:09 AM »
I've been investing with LC since 2009 and I've never seen so very few notes to invest.
Even now as I check, I see only 200 or so notes available.
Like others say its supply and demand issue.
Right now there are way more investors than borrowers.
I think it has always been this way, its just LC was able to attract more borrower previous years.
As long as there are people who cant control their spending, we are always going to have notes to invest in.

kurtnyc

  • 5 O'Clock Shadow
  • *
  • Posts: 22
  • Location: Asheville, NC
Re: Shortage of Lending Club notes
« Reply #3 on: October 30, 2015, 09:13:41 AM »
Hey, I found this post looking for info on selling notes, via folio. You seem to be a veteran, but just wanted to say incase it's helpful, I am new to Lending Club the last 6 months and also found it hard to fill some of the lower grade notes I wanted with the automated tool. I then did some research and found it was perhaps a speed issue, Lending Club's automated option is not at the top of the pecking order.  So I tried BlueVestment, a paid robo tool, to get the rest of the cash invested, and it worked right away.  I was getting notes I couldn't get before.

BlueVestment does charge for orders it fills, but it's not a lot and if it's only a potion of your portfolio the tool can be free as the first $1,000 is free. then 0.45% fee for 1-5k.  Anyway it worked for me. Why Lending Club is letting 3rd party tools be quicker than it's own tool is a mystery, but it is. their are other reasons people use BV, but for me this was enough reason.

AM43

  • Stubble
  • **
  • Posts: 166
Re: Shortage of Lending Club notes
« Reply #4 on: October 30, 2015, 09:43:55 AM »
Hey, I found this post looking for info on selling notes, via folio. You seem to be a veteran, but just wanted to say incase it's helpful, I am new to Lending Club the last 6 months and also found it hard to fill some of the lower grade notes I wanted with the automated tool. I then did some research and found it was perhaps a speed issue, Lending Club's automated option is not at the top of the pecking order.  So I tried BlueVestment, a paid robo tool, to get the rest of the cash invested, and it worked right away.  I was getting notes I couldn't get before.

BlueVestment does charge for orders it fills, but it's not a lot and if it's only a potion of your portfolio the tool can be free as the first $1,000 is free. then 0.45% fee for 1-5k.  Anyway it worked for me. Why Lending Club is letting 3rd party tools be quicker than it's own tool is a mystery, but it is. their are other reasons people use BV, but for me this was enough reason.

Thanks for the info.
Most of my notes I pick on my own without automated option help.
I am enrolled in automated option, but like to pick my own notes.
Its prob not the fastest tool, but I guess it works OK.