As of April 1st, I’m enjoying a 10.66% net annualized return on a Lending Club portfolio composed of 270 notes. As you can see from the graphic below, my performance is somewhere near the middle of the pack. I’m okay with that, however, as I’ve been focused on building a relatively low risk portfolio. In fact, 70% of my current portfolio is composed of Grade A and Grade B loans.
Having recently sold off two late loans at a small loss, I’m currently holding just one loan that is overdue. That loan is currently up for sale on the secondary market, but I’m not willing to take a huge loss on it as I’ve seen loans that are much later than this come back from the dead.
Most of my problematic loans stem from my initial “High Risk vs. Low Risk” experiment. In the time since I’ve started, I’ve developed a number of loan selection criteria that seem to be working quite well (knock on wood).
As always, if you’ve been investing with Lending Club, Iâ€™d love to hear the details. How long have you been doing it? How many notes do you have? How do you select them? And how has your performance been?