Comments on: The evolution of Lending Club http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traduceri romana daneza http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-53829 Mon, 29 Sep 2014 15:16:32 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-53829 The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

]]>
By: e-cigarette http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-52874 Sat, 27 Sep 2014 16:07:38 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-52874 Kimree is a world-leading e-cigarette company. According to Frost & Sullivan, Kimree was the second largest e-cigarette designer and manufacturer in the world in terms of both revenues and production volume in 2013. The Company designs and produces a broad range of e-cigarette products, including disposable e-cigarettes, rechargeable e-cigarettes and e-cigarette accessories. Visit http://www.kimree.com/ for more.

]]>
By: fifa 15 ultimate team coins http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-52713 Fri, 26 Sep 2014 00:31:54 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-52713 Awsome article and straight to the point. I am not sure if this is in fact the best place to ask but do you guys have any ideea where to employ some professional writers? Thanks in advance

]]>
By: NavAthwal http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-48928 Wed, 01 Jan 2014 00:44:07 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-48928 P2P lending has changed drastically over the last 3-4 years mainly due to the deployment of institutional capital. As a result, the bottleneck has become borrowers rather than lenders as Felix aptly notes.

P2P lending has also paved the way for accredited investor crowdfunding. Platforms like RealtyShares (www.realtyshares.com) and Circleup (www.circleup.com) are creating ways for investors to invest as little as $5,000 into real estate and small businesses and earn yields similar to what they earning with platforms like lending club and prosper.

Exciting times for the fintech space and I commend LendingClub and Prosper for being pioneers.

]]>
By: MachineGhost http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-48271 Wed, 09 Oct 2013 16:23:10 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-48271 Hapstein, you should consider yourself fortunate that you made any net profit at all because Prosper royally screwed up in the beginning. The platform did not become favorable to lenders until they revamped their risk model a few years ago.

Lending Club actually continues to underprice the risk all this time which is why borrowers flock to it in droves and why re-lending to it is a bad idea. A 3-5 year unsecured loan, even in AAA grade at 5% net yield after a couple of defaults, is not really worth the stress and trouble when there are asset-secured alternatives paying double digit yields available, as the banker noted. Banks do not lend out unsecured loans for less than double digit yields — do you think maybe they might know a thing or two?

As for P2P not being available in your state, I think you need to place blame on the glory hound bureaucrats for “protecting you against yourself”. They know best.

]]>
By: y2kurtus http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-48205 Tue, 01 Oct 2013 02:12:49 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-48205 I am a banker so take that bias into account when you read this post. At what point would employer to employee lending be worth the time or hassle for either party? a 2% pickup on a 10 billion dollars of cash is of course a cool 200 million and who wouldn’t want that right?

Keep doing the math and the limitations become pretty apparent, in two minutes it looks like Cisco has the most cash as a % of market cap so a company like that would have the most to gain. To put the 10 billion to work (10 billion being only 20% of their current cash pile they would need to lend $100,000 to 100,000 employees. (Yahoo says they currently have 75,000.)

Some companies already lend to their key executives and rising stars but they do it only to reward them/tie them down. I can see that kind of thing growing… especially with the taxation of wages on the rise and limitations on the deduction of salary expense above some high thresholds… but this will never be a main-street/middle-class option.

P.S to Harpstein… you should see if there are any groups of hard money lenders that meet in your local area. Lots of people write private party notes backed by assets. Many are so well protected that the lender/loan sharks are hoping for default because they want to take the collateral on the cheap. It sounds like a cooler hobby than knitting but yikes after earning a 1% return on your money why would you be looking to do this again at all? I mean Verizon just came to market with 5% paper a few weeks ago!

]]>
By: Harpstein1 http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/comment-page-1/#comment-48196 Mon, 30 Sep 2013 19:15:10 +0000 http://blogs.reuters.com/felix-salmon/?p=22550#comment-48196 So Felix, what’s the deal with them operating in all 50 states? Is that on the horizon, or dead in the water? I was a Prosper lender back in 2006, and ended up making a small (1%) return on a few thousand $ in loans. As you mention in the story, defaults were not uncommon and Prosper was frustratingly slow to do anything about them. But then Prosper shut down and I’ve never been able to get back in. I live in a state where Prosper and Lending Club can’t offer notes and I don’t think the list of states where they can offer notes has changed in the last 3-4 years. It’s really frustrating…

]]>