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My Quarterly Marketplace Lending Results – Q1 2020

My latest quarterly investment results show an overall 4.93% return for the year ending March 31, 2020

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Many of you have emailed me to ask whether I am still doing these quarterly investment reports. The answer is yes, so here is the latest installment. I have been providing these updates for all my marketplace lending investments since 2011 and I will continue to do so.

Regular readers will notice a significant change with this year’s report. There are several investments that I have decided to discontinue completely so I am separating these out now so everyone can see the returns of all my current investments. But I will still report my overall return for the time being until these investments have been mostly liquidated. I will also be sharing my thoughts on the impact the pandemic will have on this portfolio.

Overall Marketplace Lending Return at 4.93%

My overall returns for the twelve months ending March 31, 2020 was 4.93%. This is down slightly from the 5.12% return last quarter. But what has been quite encouraging is that my LendingClub and Prosper investments continue to improve. Of course, you should keep in mind that these returns are through March 31 so we have seen very little impact of the pandemic. I don’t expect these improvements to continue.

Now on to the numbers. Click the table below to see it at full size.

As you look at the above table you should take note of the following points: [Read more…]

My Quarterly Marketplace Lending Results – Q4 2019

My latest quarterly investment results show an overall 5.12% return for the 2019 calendar year

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I have finally been able to conclude my quarterly returns report from Q4 of last year.  I have been sharing my detailed quarterly returns with readers since 2011 and I will continue to do so for the foreseeable future. Given the turmoil we are experiencing today it is going to be fascinating to see how these companies hold up as we are almost certainly headed for a significant downturn.

Q4 of 2019 feels like a decade ago now with how much the world has changed. Given how the economic crisis really didn’t get started until the second half of March we won’t see much impact from returns even in my Q1 2020 report. But this year is going to be interesting to say the least.

Overall Marketplace Lending Return at 5.12%

The overall returns for the calendar year 2019 of my marketplace lending investments stood at 5.12%. This is down over 1% from my last update but the drop is almost entirely due to my largest holding: the Lend Academy P2P Fund which took a major hit in Q4. More on that below.

Interestingly, my original six LendingClub and Prosper accounts had their best quarter since Q1 2017 as underwriting changes made in 2017 have continued to bear fruit for investors. My lone holding in double figures is once again Streetshares as it continues to perform extremely well.

Now on to the numbers. Click the table below to see it at full size.

As you look at the above table you should take note of the following points: [Read more…]

My Quarterly Marketplace Lending Results – Q3 2019

My latest quarterly investment results show an overall 6.29% return for the year ending September 30, 2019

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I am certainly late with this but I have finally found the time to bring you my quarterly returns report for Q3 2019. Every quarter I share my marketplace lending investment returns with the world. I started doing this back in 2011 with my LendingClub and Prosper accounts and since then I have added many investment positions across a variety of investment vehicles and platforms.

Overall Marketplace Lending Return at 6.29%

After a consistent upwards trajectory for the past year my returns appear to have stabilized at least for now. My trailing 12 month returns for the year ended September 30, 2019 across all my accounts was 6.29% which is almost exactly the same as my last update (6.30%). My original six accounts, all with Lending Club and Prosper, were also relatively stable at 5.34% versus 5.48% last quarter.

I continue to move money out of my taxable LendingClub and Prosper accounts, focusing my investments here on my retirement accounts. My standout account continues to be Streetshares, the only one of my investments solidly in double figures. But I am also very happy with AlphaFlow, Money360, Yieldstreet and Fundrise as they are all returning more than 8%.

Now on to the details. Click the table below to see it at full size.

As you look at the above table you should take note of the following points: [Read more…]

My Quarterly Marketplace Lending Results – Q2 2019

My latest quarterly investment results show an overall 6.30% return for the year ending June 30, 2019

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Views: 1,592

[Update: an earlier version of this post had the preliminary return number of 6.20% as I awaited for the final statement. I underestimated the closing balance there so my actual return was 6.30%]

Time for an update on my quarterly investment returns. This is something I have been doing for many years now and I know it is appreciated by many of you. I started out reporting on my marketplace lending investments in Q4 2011 and have provided updates every quarter since then. I share all the details of my LendingClub and Prosper investments as well several other investments I have made in the online lending space.

Overall Marketplace Lending Return at 6.30%

The upward trend in my returns continued in Q2, making it the fifth quarter in a row with increasing returns. My preliminary return for the 12 months ending June 30, 2019 is 6.30%, the best I have achieved since Q3 2017.

My six original accounts at LendingClub and Prosper have all been open for at least seven years so they are very mature accounts that have experienced several turns of capital as I have kept reinvesting over the years. I have separated these out because these were the accounts I had when I first started doing these reports so readers can go back and see how they have trended over time. But as I have said before I am liquidating my taxable accounts here and will focus my investments in consumers loans in my retirement accounts.

Underwriting changes that were made in 2017 continue to bear fruit for my personal loan investments. My six original accounts had a return of 5.48%, a vast improvement from the 2.34% return of just a year ago, and back to near where it should be. In today’s benign credit environment I would still like to see returns in the 6-7% range for personal loans and we are headed in that direction.

Now on to the numbers. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q1 2019

My latest quarterly investment results show an overall 6.09% return for the year ending March 31, 2019

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Put this in the “better late than never” department. Yes, I know it is late July and I am only now just publishing my Q1 2019 returns. Thanks to those of you who reached out but rest assured I am still committed to sharing my results publicly and I apologize for the extreme tardiness of this update.

I am happy to report this quarter that my returns continue to improve. Since hitting bottom in Q2 of 2018 my returns have improved each quarter. Both LendingClub and Prosper showed their best returns in almost two years as the underwriting changes that were implemented in 2017 have had a positive impact.

Overall Marketplace Lending Return at 6.09%

My overall returns for the twelve months ending March 31, 2019 was 6.09%. This is up from 5.35% that I reported in Q4 and 4.77% in Q3. My original six LendingClub and Prosper accounts had another full percentage point jump. Last quarter I reported the returns on those six accounts had jumped from 3.19% in Q3 to 4.16% in Q4. We see this quarter they are at 5.18%. This is quite a remarkable turnaround and while I still think 5% is not a high enough return for unsecured consumer lending, it is certainly moving in the right direction.

One point to note is that I am liquidating my taxable accounts at LendingClub and Prosper. I have a little too much exposure to consumer credit in my overall portfolio and so I will be focused only on investing in my IRA accounts there. I am moving my redeemed cash into other marketplace lending accounts as well as other investments outside of fintech.

Now on to the numbers. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q4 2018

My latest quarterly investment results show an overall 5.35% return for the 2018 calendar year

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I know I am very late with this regular feature but better late than never as they say.  I have been sharing my detailed quarterly returns with readers since 2011 and I will continue to do so for the foreseeable future. What started out as one LendingClub account in 2009 has now grown into 16 accounts across several different kinds of investments.

The good news is the slight uptick in returns that I experienced in Q3 continued into Q4 with my best quarterly return number in over a year. While I am still not happy with where these returns are today I am pleased with the upward trend of the last two quarters.

Overall Marketplace Lending Return at 5.35%

My overall returns for the calendar year in 2018 of my marketplace lending investments stood at 5.35%. This is up from 4.77% that I reported in Q3 and 4.46% in Q2. Interestingly, my original six LendingClub and Prosper accounts jumped considerably from 3.19% in Q3 to 4.16% in Q4. We are finally seeing the benefit of some changes that the companies made to their underwriting in 2017.

My lone holding in double figures is Streetshares as once again it is my top performing investment by far. But several of my newer investments have been performing well as I consider high single digit returns to be an excellent result these days.

Now on to the numbers. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q3 2018

My latest quarterly investment results show an overall 4.77% return for the year ending September 30, 2018

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Every quarter I share my marketplace lending investment returns with the world. I started doing this back in 2011 with just my LendingClub and Prosper accounts. Today, I share my returns from 16 different accounts across a variety of investment vehicles and platforms.

I had at least some slightly good news this past quarter. After 13 consecutive quarters of declining returns I have finally had an uptick, albeit a small one. Of course, I am still not happy with these returns and I want to see a continued increase particularly when interest rates are rising. Given that you can now earn over 3% in an FDIC-insured CD for a three or five year duration I think these unsecured investments need to earn at least 7% to justify the risk we are taking.

Overall Marketplace Lending Return at 4.77%

My trailing 12 month returns for the year ended September 30, 2018 across all my accounts was 4.77% up from 4.46% in my last update. My original six accounts, all with Lending Club and Prosper, also improved over last quarter but are still at a paltry 3.19%.

My newer investments are all performing well with Streetshares still my standout account and the only investment today with returns consistently in the teens. But I am also very happy with AlphaFlow, Money360, Yieldstreet and Fundrise as they are all returning more than 8%.

Now on to the details. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q2 2018

My latest quarterly investment results show an overall 4.46% return for the year ending June 30, 2018

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I know I am very late with my update this quarter as many of you have pointed out in emails and comments. But rest assured I am still committed to sharing my results publicly and I apologize for the tardiness of this update.

I wish I had good news to share but alas the decline in my marketplace lending returns has continued unabated. The biggest culprit for my declining returns is my exposure to unsecured consumer credit. As I have written about many times in the past a decline in underwriting standards at the major consumer lending platforms in 2015 and 2016 led to a marked increase in defaults where returns for individual investors like myself were significantly below projections. Recent vintages indicate that this severe decline is being reversed but given the loans I am invested in are three and five years in duration the effects are still being felt inside my own portfolio and will be for some time.

Overall Marketplace Lending Return at 4.46%

In my report from one year ago my trailing twelve month (TTM) return stood at 7.28% and I wondered whether my returns were in a downward spiral. That has proven to be the case as I am down almost three full percentage points over the last year as my TTM returns as of June 30 stood at 4.46%.

About 18 months ago I moved to a more conservative approach in my investing, focusing primarily on the lower risk loans at Lending Club and Prosper. The average interest rate of my portfolios continues to drop steadily every quarter but given my sizable portfolios of thousands of loans it takes a while for these changes to fully take effect. Interestingly, the one account where I have taken a more conservative approach from day one, my Prosper New Roth IRA, is easily my best performing consumer lending account with a TTM return of 6.32%.

Now on to the numbers. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q1 2018

My latest quarterly investment results show an overall 4.90% return for the year ending March 31, 2018

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It is that time again when I share my quarterly investment returns. This is something I have been doing for many years now and I know it is one of the most popular features on Lend Academy. I started out investing in marketplace lending many years ago with just Lending Club and Prosper but slowly have added new investments over the years. I share all the details in this post.

Before I get started I do need to provide one caveat with this quarter’s returns. I do not have final numbers for our own Lend Academy P2P fund yet. We are reviewing valuation methodologies and we have several service providers working with us on that possible change. This process is taking quite a bit longer than we expected. I know my quarterly returns are keenly anticipated by many of you and I like to publish them around this time. So rather than wait until the valuation is final I decided to publish my quarterly report now and I will adjust when we get final numbers. In the meantime I have used the December 31 numbers, assuming a flat Q1, to provide a returns estimate.

I have one new addition this quarter, Fundrise, they are a real estate platform that is open to non-accredited investors. While I had invested a very small amount with them several years ago I added to it substantially last year and so I am including it in my returns update now. You can find out more by listening to my podcast with the CEO, Ben Miller, from last year.

Overall Marketplace Lending Return at 4.90%

After a downward trend that has continued for many years I am wondering when I will reach a bottom. My preliminary return of 4.70% is close to where it was last quarter but still down. I don’t expect my final Lend Academy P2P Fund return to increase this number so I am still stuck in the downward trend of returns.

My six original accounts at Lending Club and Prosper have all been open for at least six years so they are very mature accounts that have experienced several turns of capital as I have kept reinvesting over the years. I separate these out because these were the accounts I had when I first started doing these reports so readers can go back and see how they have trended over time. The returns for the past year are still bad at 2.34% as I continue to pay for poor underwriting performance in 2015 and 2016 at both companies. When you see today that you can get 3% on a 10-year Treasury Note a sub 3% return is just not acceptable for an unsecured consumer loan.

While I continue to reinvest the principal and interest earned in my LendingClub and Prosper accounts in the hope and expectation of a rebound I am committing new capital elsewhere. I like real estate where you can still get mid to high single digit returns with the added security of an asset backing the loan. That is why I have added new money in the last 12 months to companies like Peerstreet, Alphaflow, Money360 and Fundrise. All are detailed here.

Now on to the numbers. Click the table below to see it at full size.

[Read more…]

My Quarterly Marketplace Lending Results – Q4 2017

My latest quarterly investment results show an overall 5.01% return for the 2017 calendar year

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Time for my regular quarterly returns post, one of the most popular features here on Lend Academy. I have been sharing my detailed quarterly returns with readers since 2011 and I will continue to do so for the foreseeable future. I know investors are most interested in returns, in particular how they have been trending over time. You can go back and look at the breakdown of my investments every quarter for the past six years.

If you do look at my historic returns you will see they have been moving steadily in a downward trajectory since the beginning of 2014 when my trailing twelve month (TTM) return was 12.44%. I look back on those returns wistfully now, when my accounts were firing on all cylinders and in reality we were being overly rewarded for the risk we were taking. Today, the pendulum has swung too far the other way and I think the return is too low for the risk.

Overall Marketplace Lending Return at 5.01%

The long decline in my returns has continued with 2017 by far my worst year since I began investing with LendingClub back in 2009. My overall TTM return  in Q4 2017 was 5.01% compared to 6.64% in Q3 2017 and 8.07% one year ago.

I used to proudly say I had never had a down month in my LendingClub or Prosper investments. Now, I have not just had down months but down quarters as well. And I came perilously close to having a down year in my main LendingClub with my return coming in at 0.01%.

[Read more…]

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