LendingClub gains after new hire
Formerly global COO for BlackRock's iShares, and then head of BlackRock's San Francisco office and head of iShares Global Markets and Investments, Patrick Dunne takes over as LendingClub's (NYSE:LC) chief capital officer.
He will focus on the most critical part of the company's turnaround effort, says BTIG's Mark Palmer: Convincing investors to return to its platform, while also attracting new sources of capital to fund loan growth.
"Dunne could serve an important role not only in shoring up LendingClub's investor base, but also contributing to the development and launch of new verticals from the company's marketplace platform."
Shares +2.45% premarket
Interesting. I don't know if this is a sign of things to change, or trying to just get better with institutional money. I don't know the Blackrock business well enough to really understand that person's experience. Maybe they are thinking of getting more creative with funding? Guy certainly seems impressive
He has one seriously impressive CV. BA economics at Berkeley, MS Management from Stanford ending up (before LC) at the age of 47 CEO of BlackRock asset management (the big leagues). Probably boils down to the credibility he's built with his peers and his ability to build a case for them to take another look at LC. On paper at least it certainly looks like a very good move by LC. I'll be rooting for him from the bleachers. Time will tell.
We want a BRV. But it will never happen because they don't give a damn about us.
What does BRV mean?
And, we went for several weeks without very man G, F and E loans and now there are dozens of those loans available.
Institutional investors and clients of LC Advisors seem to get what they need.
Institutional investors and high net worth clients of LC Advisors have a BRV type structure in place to protect their interests. Don't know why LC doesn't give this protection to retail investors. Maybe most retail investors don't care or are unaware of the risks.
@anabio-I really do not know how a bankruptcy would effect things, and hope I never see it either. I have just a sliver of concerns over it. My investment strat changed simply because of the FOLIO market and deals there. Once/if those deals dry up, will go back to normal investing in LC. A recession coming just because they are cyclical or possibly over Brexit or politics or something else, is a possibility. 2-3% shaved off profits would make me frown, but not bail out. I do see why others will/would though. The gambler in me, or maybe naive.
As far as letting it ride in Vegas, maybe if I was 21 and sitting at a good blackjack table.
They used to make quality loans and now they make loans to borrowers who won't pay them back and the recession is coming and they suck! Another example of them changing the rules
Correct me if I am wrong, but FOLIO is not owned by LC.
Sorry Rob, but ya, feel those are trivial/needed changes. Would anyone seriously gripe right now if they put a cap on markups at 10%? Some may complain about 5%, but how many notes are intentionally bought in a given month at 5%?
Currently there are over 230k notes on FOLIO with over a 5% markup and not even all those are current.
Come on now, who is going to intentionally buy this?
https://www.lendingclub.com/foliofn/browseNotesLoanPerf.action?showfoliofn=true&loan_id=61549167&order_id=84921698¬e_id=97536239RawRaw -- Guess i do not see that.
Lovinglifestyle -- People's notes on their loans really make a difference on buying? Would you be more willing to invest in someone if they came here? Look at those scam artists who come here once a month saying they were turned down by LC and want people to invest.
My comment was a joke just FYI. I know lately it's hard to spot that from regular paranoia lol.
I'm still concerned about the viability of LC, but not the health of prime consumers.
For me, the good news is that loads of G, F and E rated notes are returning.
As far as Folio goes, immediately after a note gets issued, I list in on Folio at between a 5% to 8% markup.
I don't seriously expect it be bought, but I figure, that if I can get even one person to buy a 27% loan at 5-8% within the first couple of months, and then I take that money and buy another loan, I have profited right away.
There are more benefits of what you are doing than you may realize. When discussing this strategy, I like to use a saying, a bird in hand better than two in the bushes. You might want to consider reducing your markup for newly issued loans and extending your strategy to whole portfolio. The conversion of interest income to capital gains for aged loan has tax benefits. You may take a hit on primary platform NAR with the strategy but the gains from secondary sale, bringing returns forward in time, and tax treatment makes up for it.