I’ve been a bit lax about updating our Lending Club performance ever since I decided to start winding down our portfolio. Nonetheless, we do still have a chunk of money there, and it’s still performing reasonably well.
About ten months ago, our portfolio looked like this:
- 336 loans were current
- 88 loans had been paid off
- 2 loans were 16-30 days late
- 13 loans were 30-120 days late
- 13 loans had defaulted and/or been charged off
And our net annualized return (NAR) was around 8.3%.
And as of now, our portfolio looks like this:
- 266 loans are current
- 146 loans have been paid off
- 3 loans are currently 16-30 days late
- 9 loans are currently 30-120 days late
- 28 loans have defaulted and/or been charged off
And our NAR is just over 7.6%, roughly where it’s been for the past six months or so. I haven’t had a chance to update Moneydance, but our real-world numbers are usually around 0.5% lower due to idle cash, etc.
Since I’ve typically kept our notes small, those defaults have averaged around $17.70/each, totaling just under $500. Given that I intentionally bought a bunch of high risk loans at the very beginning, that’s not too bad.
We’re now approaching three years since I first started investing with Lending Club, so our oldest loans will soon be reaching maturity. I suspect that the increasing age of our portfolio is why our returns have leveled off in recent months.
What about you? If you’re Lending Club investor, how have your investments performed? How many notes do you own? And how long have you been doing it?