Below is a table showing the updated P2P Analytics performance statistics.
The first table compares the performance of the Average Lending Club investor to the Average P2P Analytics investor, assuming they only invested between P2P Analytics inception (August 2012) until the end of 2012.
The second table compares the performance assuming they only invested between P2P Analytics inception (August 2012) until today. So far the results of the service are favorable and prove that statistically based note selection can be profitable and minimize one’s risk of defaults. As time goes on, more detailed Lending Club investment strategies can be developed for less defaults.
A quick note on how “Theoretical defaults” was calculated: According to the Lending Club statistics page, the recovery rate for 16-30 day late notes is 77%. The recovery rate for notes 31-120 days late is 53%. The formula used for theoretical defaults in all cases is the following: =(#.of.16-30DayLateNotes*0.23)+(#.of.31-120DayLateNotes*0.47)+(#.of.Defaults/Write offs).