Last week I bought my first notes. One of my notes in showing "fully Paid" I had invested $50. But I don't see where I actually got the $50 back. If it's truly paid, I want to reinvest it-since I am just getting started. Does it take a few days for the money to reappear-kind of like it takes a few days when you transfer money in to invest?
Thank You! I reinvested it this morning.
You had a note go from newly issued to fully paid in less than two weeks???
That's gotta be close to the record; very strange!
For the record what was the term and grade of the loan? TIA
It's not unusual.
PAID $25.00 E1 19.99% 36 $0.00 $0.00 $25.02 3/9/16 Fully Paid
PAID $25.00 B2 9.16% 36 $0.00 $0.00 $25.03 5/13/16 Fully Paid
PAID $25.00 D4 18.99% 36 $0.00 $0.00 $25.03 6/23/16 Fully Paid
PAID $25.00 B5 11.49% 36 $0.00 $0.00 $25.03 12/25/15 Fully Paid
PAID $25.00 B3 9.75% 36 $0.00 $0.00 $25.03 5/12/16 Fully Paid
$0.14 of interest on $125 for less than a month = 1.34% annualized return. STILL better than a savings account. (Not by much though.)
My account is around the 7th-month mark and seeing under 3% fully paid. 267 notes and 8 fully paid.
And welcome aboard. You have found the right place for any of your questions.
Thanks...I am up to 57 notes and will be buying some more tomorrow. My current portfolio is this mix: A (7.1%) B (22.9%) C (32.9%)
D (35.7%) E (0.0%) F (1.4%) G (0.0%)
What or where can I strengthen...I am thinking A and B Grade.
I recently received some money from my mother's passing and my father asked that I invest it. I once had a loan with Lending Club (paid it off early and opened this account!) Yesterday I opened a Vangaurd Account and I know nothing about investing. I am thinking about closing it before I even get it going and just putting it here!
What time period were you using for your data, yearly, monthly, because I'm in the process of making an Efficient Frontier of the filters I use with yearly data and I'm having trouble with the variance/covariance table where the numbers are all essentially zero, leading to only two of the grades being given weights.
Agree with Fred, there is very little benefit from diversifying across Grades as grades are just ordered sets across risk-return spectrum. Just select specific grades based on your risk appetite. Diversification helps when you select two dissimilar criteria that has potential to offset risk/behave differently from each other. For example, you may benefit from diversifying borrowers across different states so that economic condition of any one state doesn't have outsized influenced on your portfolio performance. Similarly diversifying across home ownership, employment length, and credit age can be more beneficial.