Here’s the last part of the monthly update for my Beat The Market Experiment, a set of three real-money portfolios started on November 1st, 2012. See also my $10,000 Benchmark and $10,000 Speculative portfolio updates for January 2013.
$5,000 LendingClub Loan Portfolio, January 2013 Update. (A little late on the update, although only about $9 in extra interest was accrued since 1/1.) Below is a screenshot of my LendingClub account as of 1/9/13. Keep in mind that I had loans before, but sold them all on the secondary market and started fresh for this tracking experiment.
Since last month, I invested another $400 for a total of 191 active and issued loans. I used simple loan filters based on my LendingClub filters post as well as my Prosper filter research noted below, and haven’t spent any time looking through any individual loan descriptions. The portfolio is very young, but so far all loans are current (16 days past due is considered late).
LendingClub.com account value: $5,082.51 (includes principal, accrued interest, net of fees)
$5,000 Prosper.com Loan Portfolio, January 2013 Update. Below are screenshots of my Prosper account page as of 1/9/12.
Since last month, I invested another ~$1,500 for a total of 201 loans after activating the free Quick Invest feature which automatically invests in loans that satisfy my preset criteria. The convenience is great so far. Again, I used loan filters very similar to those suggested in my Prosper loan filters post. I did manage to already have one loan that is 3 days late. After peeking at that individual loan description, and it must have slipped through when I was tinkering with my filters because the borrower listed themselves as unemployed and I filter those out now. Hopefully it will go current again, but this is why you diversify.
Prosper.com account value: $5,033.55 (includes principal, accrued interest, after fees)
Total P2P loan value: $10,116.06 (includes principal, accrued interest, after fees)
I know this isn’t the same as the actual liquid value of the loans, but it’s the best I can do for now. In the future, I plan to assume that any loan past 30 days late will be a full default of all remaining principal.