Thursday, November 05, 2009

Great progress using Lending Match feature of Lending Club, but one bug

Just under a week ago I made my first attempt to use the Lending Match feature of Lending Club to invest in a whole batch of P2P investment loans all at once. It has worked out well, with just two related glitches. Out of nine loans, eight have already been "Issued", and only one failed to reach 100% funding in the two-week funding period. Not bad at all. I was actually worried that two or three of the loans might not get funded. So, that was the first, almost-expected "glitch". I classify it as a glitch because I have to now manually intervene to "set things right." Now, I need to select another loan to substitute for that rejection. Oops... here is the second glitch. Even though that rejected loan has already dropped off the Funding/Issued list, my funding amount has not yet been credited back to my account, so I can't reinvest it yet. To me, that is more of an outright bug rather than a simple "glitch." But, I am confident that either later today or tomorrow morning the money will be credited and I can select a replacement loan for investment.

My current Net Annualized Return is displayed as 13.44%, before the new loan batch. That puts me up at the 78% percentile. The new batch of loans may push me up to 82% or so. I think I want to be at around the 85% to 90% range, rather aggressive, but not way out there with the whacky 10% fringe nuts.

Based on my quick success, I am already looking at some other "extra" cash that is earning 0.00000001% interest in my Fidelity account and trying to decide whether to "save" it with SmartyPig.com and get 2.01% APY or "invest" it with Lending Club and get maybe 17%. Maybe I'll split it in half and do both.

Further down my list of things to do is to check out the FOLIOfn Note Trading Platform. I want to see which notes might be selling at a premium and maybe sell a few to lock in some bigger gains.

-- Jack Krupansky

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