It has been over a year since I last updated on my account at Lending Club. We’ve been adding a couple hundred a month as automated investment to the account and rolling all payments back into new loans. With $1367 in interest and $50 in recouped loans, less the $367 charged off, $50 in fees, and a $180 adjustment for loans which are currently past due I’m up $795 on my deposits of $7450. Lending Club tells me that works out to an Adjusted Net Annualized Return of about 9.2%.
The primary changes I’ve noticed since I last wrote about my Lending Club progress include a lot of small mark downs of expected returns… that’s not so promising considering the generally positive economic situation and bull market. Compared to the stock market over the last two years this has not been a particularly good return, we’ll have to see what happens whenever the market runs out of steam. And from what I can tell it also isn’t that good of a return compared to a diverse junk bond portfolio, and then factor in taxes and the tax complexity… not feeling so hot on P2P lending right now. We plan to continue to automatically deposit a small amount each month until we reach $10k of deposits (sometime around the end of this year) then I think we’ll just let it ride to see how it goes.