Retail investors have been longing for a more robust secondary market feature set, something that wasn’t possible until this year when FOLIOfn, Lending Club‘s secondary market provider, announced their API. NSR Invest has dedicated a significant amount of time to building support out for the secondary market this year and last month they released it to the world. In this post, we will share the features and what makes NSR Invest’s offering unique.
The Components of the NSR Invest’s Secondary Market Technology and What is New
For many years retail self directed investors have used the NSR Invest platform to develop loan purchasing strategies on the primary market. To buy notes on the FOLIOfn secondary market that met their filter criteria, investors would have to sift through loan listings by hand, using limited filters offered on Lending Club’s website. The secondary market functionality has been incomplete and investors have wanted more for quite some time.
Recently, Lending Club has updated their API, which has been adopted by FOLIOfn and has improved their secondary market by making it possible to buy and sell notes in an automated fashion.
NSR Invest has built features and functionality to improve their clients’ secondary market experience. Specifically, they have expanded beyond just sharing loan listings to also offering additional functionality including the ability to:
- Filter loans that are listed on the secondary market
- Purchase loans that are listed on the secondary market
- Automate a buying strategy for continued purchase of loans that meet your filter criteria
- Automatically sell loans on the secondary market
Automated Selling on the Secondary Market
Many investors have used FOLIOfn to sell their notes for some time. But this has always been a manual and laborious process with no way to set an automated selling strategy. With their new roll-out NSR brings these features in house.
Now NSR investors can access selling by clicking on “Investing” and then “Sell Strategies.” You are presented with the below chart and filters. Modifying the filters below the chart allow you to understand the average markup/discount of similar notes. For instance, if you were interested in selling your 36 month riskier grade notes in grace period, you could select E,F,G, 36 months and “In Grace Period”. This will give you the average markup/discount by remaining payments. However it’s important to understand that this includes current listings, not transactions where the notes have actually sold. Thus, these figures should only be used as a guide. Changing the filter criteria also allows you to see the notes and principal remaining that match your selected criteria, pictured under the Sales Estimates section. [Read more…]