Impact of discounts on note sales

I continue to sell off my Lending Club notes on FOLIOfn. I have a daily routine as described in my previous post. The process is working reasonably well as I’ve sold over 50 notes in the past week. I still have a little less than 100 to go.

Yesterday I decided to follow the sales to see if I could learn anything about the impact of changing the discount had on sales. I did my typical process of increasing the discount by about 2.5% and add 9 new notes to the sales offer. These had just completed payment processing and were offered at markups of 1% ranging down to discounts of 1%.

I sold 8 more notes, all were notes previously available for sale and marked down. None of the newly offered notes sold (I guess the discounts weren’t high enough). Following is a table with data relative to the 8 notes sold.

Note ID	Sale Price	Discount 1	Discount 2	Reduced
70727653	$9.10	-17.09%	-19.74%	2.65%
127455223	$10.06	-9.25%	-11.88%	2.63%
86193936	$12.67	-7.71%	-10.53%	2.82%
163913093	$19.93	-5.54%	-7.86%	2.32%
128534964	$9.86	-7.19%	-9.93%	2.74%
131160886	$11.50	-8.37%	-10.70%	2.33%
134217597	$11.48	-8.28%	-10.61%	2.33%
166633569	$20.38	-4.25%	-6.54%	2.29%

The average discount of the notes sold was about 11%, but there was quite a variance in range. Clearly there isn’t any rule of thumb to be determined from this data. I’ll continue with the sale and provide some more data about my experiences in upcoming posts. Follow me on Twitter, @billlanke, to be notified when this post occurs.