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Blogger's Lending Club Review: Strategy, Defaults, Returns

Saturday, June 18, 2011 - 12:16 PM
The blogger Pete at Bible Money Matters has a good review of his investment returns and his investment strategy at Lending Club. Like Prosper, Lending Club is a person-to-person lending service that removes the bank from the process. Accounts are NOT FDIC insured. Here's an interesting excerpt from a review of his returns:
I'm still diversified by investing across a large number of loans: I’ve got over 100, with no more than $25 in each loan. That way if I do have defaults, while my return may go down, my risk will be minimized.  Lending Club noted earlier this month, that 100% of their investors who have invested 800 notes or more had positive returns.

I've reviewed a few other blogger's investment returns from Lending Club. Jonathan at MyMoneyBlog who has been tracking his returns at Lending Club since 2007 has data showing that returns keep dropping for loans going from 1.5 to 3 years old.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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