LendingRobot Series finished the second quarter with a healthy YTD aggregated return of 2.7%. Each Series’ return and portfolio health is in line with projections. Since April 1st, LendingRobot Series has added over 2,800 loans to its portfolio, more than doubling the number of loans held in each series.
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.
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 a previous article, we conducted a preliminary investigation of applying Modern Portfolio Theory to Lending Club.
We are constantly striving to improve the Peer Lending experience for LendingRobot clients.
There have been a lot of changes since Marketplace Lending was introduced in 2006, but since surviving the financial crisis of 2008 and SEC scrutiny in 2008-2009 it’s clear that Marketplace Lending is an asset class that is here to stay.
Back-testing simulations show that relying on LendingRobot’s proprietary scoring mechanism allows to increase investment performances significantly, on both Lending Club and Prosper marketplaces.
In a previous paper, we showed how we could predict the future return of a loan at its inception, based on historical data from the marketplace and the loan’s characteristics.