Alas, Bob is not anymore the trustworthy friend he used to be, and you may have doubts about his ability (or willingness) to pay you back. For instance, if he was supposed to give you some money yesterday, but you haven’t heard from him and he’s not even answering your calls. In that case, you would be very happy to offload me the loan for \$120 or even \$100, but I wouldn’t buy it at that price.
On the call and in the slides, Lending Club stated that “all large investors have reengaged on the platform.” As seen in the chart below, it does appear that these investors have reengaged. But what wasn’t highlighted is that a single institutional investor made up a …
A \$20,000 portfolio split evenly between Lending Club stock and in Lending Club notes at the company’s IPO in 2014 would be worth \$14,188 today. The notes would have a value of \$11,607, while the Lending Club stock would be valued at \$2,581. That’s not the end of the story, though.
Lending Club has guided investors that there will be 0% growth in originations from the second quarter. The company has stated that they expect a \$15-\$30 million loss. This number may be optimistic.
There are many options to invest in peer lending. We’ll go over each, discussing the positives, the negatives, and the costs.
Today we introduced a new product which connects to Lending Club, called LendingRobot For Advisors.
Our ‘Summary’ page shows how much money a LendingRobot client could withdraw on a monthly basis from their loans payments.
An increase of stock market prices is only sustainable when it matches economic growth. Otherwise it’s pure speculation, and history has shown that ‘corrections’ inevitably happen.
*Note: This Infographic is intended for informational purposes only. Your specific situation may differ.
To ensure proper tax treatment be sure to consult your tax professional for advice.
