December 18th, 2012 – Is Lending Club starting to run out of riskier notes?

After keeping track of note availability for the past few weeks, one main trend has emerged: A grade notes on Lending Club are becoming very plentiful while lower grade notes are starting to become a little supply constricted. I’ll let the following two charts speak for themselves.

A grade note funding availability (22 day chart)

 

 

 

 

 

 

 

 

F&G  grade note funding availability (22 day chart)

 

 

 

 

 

 

 

 

If this trend continues, this will mark a very important shift in terms of the types of notes that are available for investors who have a higher appetite for risk. Will Lending Club have to change their issuance policies to keep up if the trend continues? Although 22 days worth of data is not enough to come to long term conclusions regarding Lending Club’s note supply, the trend so far is interesting.

You can leave a response, or trackback from your own site.

3 Responses to “December 18th, 2012 – Is Lending Club starting to run out of riskier notes?”

  1. Peer to Peer Lending News Roundup – December 22, 2012 says:

    [...] IS LENDING CLUB STARTING TO RUN OUT OF RISKIER NOTES? from P2P Analytics – While I wouldn’t say they are running out but Lending Club has had a noticeable shift in the total number of high risk loans available in recent weeks. [...]

  2. Bryce M. says:

    Is it that there are truly fewer lower rated loans, or that they are being gobbled up quickly? Your vertical axis doesn’t tease this out. Do another chart with the total dollar volume of each type actually funded and maybe come to a different conclusion? I’m not sure.

  3. jasonejacks says:

    Good point. Whether this is a lack of supply or an excess of demand is unclear with the current chart. I will try and do a follow up post further investigating this.

Leave a Reply


× four = 28

Note: The material presented on P2Panalytics is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither P2PAnalytics nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither P2PAnalytics nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of Peer to Peer Lending notes and portfolios for educational purposes, is not necessarily indicative of future results. Anyone related to P2PAnalytics may hold positions in the notes mentioned, which may change at any time without notice. Peer to Peer lending has inherent risks and P2PAnalytics is not responsible for investment losses incurred by any of its users or readers.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.