Experiences liquidating notes

I wasn’t very active on the Lending Club front in January. Most of the effort was trying to liquidate notes on FOLIOfn. The notes involved were those that were to be completed in the 4^th quarter of 2020. Again, selling notes on FOLIOfn isn’t a very good experience. There just isn’t much of a market. I’ve managed to sell all the notes I desired, except for one. That one still has a status of pending, so you can’t list it on FOLIOfn. No payment has been made in about 2 months. Frankly, I don’t understand why it isn’t simply marked off.

I did manage to sell about 3 dozen of the desired notes in January, but even on the ones that are current, the sales only occurred with discounts as high as 50%. With that behind me, I’ve decided to liquidate large numbers of the remaining notes that I have in February.

I’ve identified 1,595 notes that are candidates (all excluding the test case notes). My first attempt at listing these with a 1% markup failed because those with a small balance remaining were rejected by FOLIOfn at that markup. So, I manually had to check the ones to be listed and focused on those with larger remaining balances. On day 1, I’ve listed 350 notes and will add more later (moving the markup down to a discount for those with little value remaining. I’ll post more frequently following the progress of these sales.

Description	Current	Other	Fully Paid	Charged Off	Index
Test 1 End in 2017	0%	0%	96%	4%	95.9
Test 2 End in 12 months	70%	0%	30%	0%	96.2
Test 3 LC Picks	87%	5%	8%	0%	98.5
Test 4 Zip Grade	97%	3%	0%	0%	98.7
Test 5 By Percent	88%	5%	5%	3%	95.0
Test 6 By Funded	90%	8%	3%	0%	98.9
Test 7 Random	88%	3%	10%	0%	97.7
Test 8 FOLIOfn Zip Grade	89%	0%	11%	0%	100.0

The first test case (notes purchased from FOLIOfn early in 2017 that were set to expire in 2017) has run its course. All notes are completed, with 96% being fully paid and 4% charged off (even in their last year). As I detailed in my last post, I don’t consider this approach worthwhile.

The others are still relatively new in their life cycle to draw any conclusions. But, we’ll continue to follow them.