As with any investment, the key to determining returns is knowing the value of the underlying assets. For LendingRobot Series, this is entirely dependent on the Series unit values and the number of units an investor owns.
The Alternative Lending space, while still young by most measures, has grown immensely over the past several years.
With the launch of LendingRobot Series comes our new model LRv2, aptly named to distinguish it from its predecessor, LRv1. LRv2 represents a significant improvement in loan selection over LRv1. In this blog post we’ll discuss the inner workings of LRv2, its differences to LRv1, and how it fits into LendingRobot Series.
At some point nearly every Peer Lending investor asks the question, “Which platform should I invest on?” but the answer usually isn’t simple.
Since we’re constantly thinking of ways to help others understand Peer Lending returns, we’ve simplified our platform performance calculations to be more easily understood, more comparable to widely reported bond and stock market returns, and devoid of forecasts and estimations.
Bloomberg recently posted a critical article about Lending Club. There are two main points in the article: first, that Lending Club is clandestinely issuing “supposedly” undesirable loans to repeat borrowers, and second, that Lending Club as a company is failing.
One question we are often asked is how to reconcile our Expected Return with Lending Club’s (adjusted) Net Annualized Return, or (a)NAR. In this article, we’ll explain how they’re calculated and what is important about each return metric.
In January of 2014, we did an analysis about how many loans one needed in a portfolio to be fairly confident of earning a positive return.
In March 2016, we started presenting two return numbers: Current Return and Forward-Looking Return.