A Kandinsky-esque picture: the evolution of Risk to Reward on Lending Club
We think a lot of about risk versus return. Recently, we looked in to the evolution of risk to return on Lending Club.
- Stephen Zentner
- 4 Comment
We think a lot of about risk versus return. Recently, we looked in to the evolution of risk to return on Lending Club.
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.
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.
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