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

December 19th, 2012 jasonejacks

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.

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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:
    December 22, 2012 at 1:25 pm

    [...] 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. [...]

    Reply
  2. Bryce M. says:
    December 22, 2012 at 6:24 pm

    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.

    Reply
  3. jasonejacks says:
    December 23, 2012 at 2:30 am

    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.

    Reply

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