Here are the results for the strategy:
https://postimg.org/image/5xio0ot6h/" class="bbc_link" target="_blank">https://s28.postimg.org/5xio0ot6h/lendingclubstrategy.png" alt="" class="bbc_img" />
After checking Lending Club maybe a dozen times, I've come to the conclusion that buying in-grace notes is simply not a viable strategy. Lack of liquidity is the issue: there are simply not enough notes available. Even if you could develop a computer vision robot, you'd be lucky to even snag 5 25/50 notes per month. In theory, the cure rate should be more than 65% (and even more than the cure rate of regular in-grace notes), but even if only 50% cure, you would end up with a 38-45% return. I've defaulted back to the penny note strategy for E/F/G notes. This seems to be safer than buying them straight out. Right now, my combined return is -2.04%. I'll update when I get positive/change services.
https://postimg.org/image/5xio0ot6h/" class="bbc_link" target="_blank">https://s28.postimg.org/5xio0ot6h/lendingclubstrategy.png" alt="" class="bbc_img" />
After checking Lending Club maybe a dozen times, I've come to the conclusion that buying in-grace notes is simply not a viable strategy. Lack of liquidity is the issue: there are simply not enough notes available. Even if you could develop a computer vision robot, you'd be lucky to even snag 5 25/50 notes per month. In theory, the cure rate should be more than 65% (and even more than the cure rate of regular in-grace notes), but even if only 50% cure, you would end up with a 38-45% return. I've defaulted back to the penny note strategy for E/F/G notes. This seems to be safer than buying them straight out. Right now, my combined return is -2.04%. I'll update when I get positive/change services.