Learn the Basics of Borrowing and Investing with Peer to Peer Lending

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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

Lending Club 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.

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HarMoney Liberating Lending

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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Peer to Peer Lending News Roundup – September 13, 2014

September 13, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. The Economic Health of a Borrower’s City Affects Loan Performance from Orchard – A guest post by a family [...]

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LAP23: Dave Girouard CEO and Co-Founder of Upstart

September 11, 2014

For many years the p2p lending industry in this country has been dominated by two platforms: Lending Club and Prosper. Dave Girouard, the CEO and Co-Founder of Upstart and guest on this edition of the podcast, wants to change that. Upstart began with a unique lending idea called Income Sharing Agreements but earlier this year they [...]

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The Lend Academy Speaking Calendar in the Next Month

September 10, 2014

This is a very busy fall for p2p lending conferences. And starting next week with the Apex Lending Exchange Lend Academy will be speaking at several conferences in the coming month. Here is a brief description of these conferences and the sessions where we will be presenting. Apex Lending Exchange: Sep 16-17 (New York City) [...]

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Lending Club Had Their First Down Month Since Feb 2011, Should Investors Care?

September 8, 2014

Until April Lending Club updated their loan statistics every day. But in preparation for their upcoming IPO they moved to a quarterly update cycle instead of daily. So now, we have to wait several weeks after the end of the quarter before we can see the full loan data for loans Lending Club issued in [...]

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Peer to Peer Lending News Roundup – September 6, 2014

September 6, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. IS AMAZON QUIETLY GETTING INTO THE LENDING BUSINESS? from PYMNTS.com – Amazon has hired a former Visa and Prosper [...]

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Prosper Records More Strong Growth in August

September 4, 2014

When you look at the graph above you can see the kind of year that Prosper is having. Apart from a hiccup in February, they have been firing all cylinders this year with some of the most impressive growth we have seen, at least in this country. The numbers for August are in and Prosper [...]

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Peer to Peer Lending News Roundup – August 30, 2014

August 30, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. The big news story of the week was the Lending Club IPO. It was covered by every major business news [...]

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Save the Date for LendIt 2015 in New York

August 29, 2014

The 2015 edition of LendIt Conference is now set. We are going back to the east coast next year, back to New York City again. We are booked in at the Marriott Marquis in Times Square on April 13-15. We are still working out the details and we are not yet open for registration but [...]

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