Gee, it’s been a month since I last posted on this blog. One
reason is that we’ve made our annual migration south for the winter. With that
comes a bunch of doctor visits and medical tests. I’ve completed 8 so far and have
6 to go. In my condition, each of these pretty much kills the day. Hence,
little time for other stuff.
The other reason is a pretty low level of activity on the
Lending Club front. I’m still trying to sell my notes that finish in 2021. That
isn’t as easy as it would seem on the secondary market, FOLIOfn. I’m down to
about a dozen and a half to go. I put these out there today. I decided to start
these at a 2% discount to move them along. A few will sell, but most won’t. So,
I’ll increase the discount by another 2% a day. In about a week most will have
sold. Unfortunately, a few of the sell offers will have been cancelled because
they will have entered a payment processing cycle. Then I’ll repeat the process
and hopefully eliminate my 2021 notes in early December.
It also makes sense to start to eliminate notes finishing in
late 2020. The goal will to have none left at the end of that year. It’s likely
some will be late at that time. Eliminating some of those close to the end might
reduce this possibility.
Following is the test cases update.
|
Description
|
Current
|
Other
|
Fully Paid
|
Charged Off
|
Index
|
|
Test 1 End in 2017
|
8%
|
0%
|
88%
|
4%
|
96.0
|
|
Test 2 End in 12 months
|
75%
|
0%
|
25%
|
0%
|
97.3
|
|
Test 3 LC Picks
|
95%
|
0%
|
5%
|
0%
|
98.9
|
|
Test 4 Zip Grade
|
98%
|
3%
|
0%
|
0%
|
100.0
|
|
Test 5 By Percent
|
88%
|
10%
|
3%
|
0%
|
97.0
|
|
Test 6 By Funded
|
95%
|
3%
|
3%
|
0%
|
99.7
|
|
Test 7 Random
|
95%
|
0%
|
5%
|
0%
|
98.6
|
|
Test 8 FOLIOfn Zip Grade
|
100%
|
0%
|
0%
|
0%
|
64.3
|
Test case 1 is the only one mature enough to have meaningful
results. In fact, all these notes should be completed in the next 2 months. I’ve
just now received more than I invested. Soon I’ll be able to hang a percent
return on this approach.
I acquired a few more notes in test case 8. Its index is low
since I haven’t received any payments yet. I will probably continue to buy a
few more of these. I’m not sure when
I’ll update my Lending Club stuff again, but I’ll post on twitter when I do
(@billlanke).
