Today, Lending Club has added some long awaited features for investors who use the Lending Club trading platform to buy and sell notes. Until today many people who traded notes on Foliofn had no idea what their actual returns were – these were often mispriced by Lending Club’s NAR calculation. No more. If you have never bought or sold notes through Foliofn then these changes do not affect you.
Below is an explanation of these changes using my own main Lending Club (taxable) account as an example.
Primary Notes Return
This 10.85% number above represents the NAR return on all the notes that I have bought on the primary platform and not sold. These are now called Primary Notes. Any notes that were either bought or sold on Folio are excluded from this number.
When you click on the Understanding Your Returns link (underneath the NAR number) here you will go into the same screen as before with the dot-chart that plots similar investor returns.
I hear from a lot of platforms both in the US and around the world in various stages of launch. Never before have I heard of a new platform launch with such a large cash war chest. Harmoney has received NZ$100 million (around US$80 million) in lending commitments – for a p2p platform to raise that kind of debt capital before launch is unprecedented.
Harmoney is the first New Zealand (NZ) p2p platform to have been licensed by the government there under the new rules that took affect in April. I have been following their evolution with great interest and have had several phone calls with their founders over the past year. I also met with them in person at LendIt 2014 in San Francisco back in May.
I have been very impressed with Harmoney from day one. Last week they launched publicly and garnered a lot of attention in the local press. But if you think this is just an NZ story, think again. There is a lot we can all learn from Harmoney and, not only that, US investors may soon be able to invest on their platform. More on that later.
First, I want to share some details of the conversation I had last week with Harmoney’s CEO, Neil Roberts and Duncan Gross their Director of Business Development.
Both gentlemen were obviously very excited about their launch. They have assembled a large cash war chest and are eager to get their business going. They have had several trips to the US over the past year and met with many prominent people in our industry including some executives at Lending Club who they said have been “very helpful.” At LendIt they also met with several of the funds in our industry and have received a commitment from one of those funds as part of the $100 million.
A Partnership With a Prominent New Zealand Bank
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