Time for another Lending Club update… My net annualized return recovered slightly from 9.5% in July (thanks to another charged off loan) to 9.6% at the end of August. It has since creeped a few hundredths higher.
As for my “real world” performance (calculated using Quicken) I closed out the month with a lifetime annualized return of 8.50%. As I’ve noted in the past, the discrepancy between my NAR and my real world return is likely due to the effects of idle cash.
In fact, think that my real world calculations are a bit on the conservative side. The reason for this is that I record all transactions as having occurred on the last day of the month, but money that is transferred into the account gets recorded on the date of the transfer. Thus, even if I invest quickly, Quicken thinks the money is sitting around for a bit longer than it really is.
With respect to ongoing investments, I’ve been focusing mostly on reinvesting the interest and principal repayments that I’ve been receiving. For the past month or so, I’ve done this exclusively on the secondary market, which has worked very well.
If you’re investing with Lending Club, I’d love to hear how things are going.