As August came to a close, I was enjoying a 12.40% net annualized return with Lending Club. Throughout the month, I focused on expanding my holdings beyond my original â€œHigh Riskâ€ and â€œLow Riskâ€ test portfolios. In addition to those two portfolios, each of which has 20 loans, I’ve created an “Ongoing” portfolio with an additional 79 loans. That brings me up to 119 loans total.
In terms of loan performance, the one “High Risk” loan that had gone bad during July is still late. In fact, that borrower hasn’t made a single payment since the loan was issued, and Lending Club has now engaged the services of a collection agency. While I’d love to be proven wrong, I’m assuming that loan will end up being a total loss.
Oh, and guess what? It seems that FCN staff writer Matt Jabs is not a deadbeat. As you might recall, Matt listed a debt consolidation loan and I invested in it back in late July. Well… His first payment came in on time, just like he said it would. Keep it up Matt! 🙂
Actually, Matt’s not the only one who’s holding up his end of the bargain, as 118 of my 119 loans are being paid on time. While I’m anticipating the possibility of a few more hiccups down the line, I’m certainly pleased with how things are going thus far.