Thursday, October 25, 2012

Lending Club Peer to Peer Lending Account Performance

I have been on Lending Club since Dec 2008.

Since 2008, I have had the following net account performance (after loan sales and transaction fees):

2009:  7.7% return.  One month with a losing record.
2010:  9.5% return.  Zero months with a loss.
2011:  11.0% return.  Zero months with a loss.
2012 thru 30 Sep:  9.6% return.  Zero months with a loss.

I personally believe that I have not lost money in Lending Club because I do not hold loans until default.  Instead, I sell the loans at a discount in the first two weeks of loan delinquencies.