Since June 2007, investors at Lending Club have earned over 9.5% net annualized returns* by investing in slices of unsecured, personal loans made to creditworthy borrowers. This net annualized return was produced during one of the most volatile recessions over the past century and has outpaced the returns of the Nasdaq, S&P 500, high yield corporate bonds and even 1-3 Year Treasuries over the same time period.
Lending Club offers investors access to an alternative asset class that generally was previously only available to banks and credit card companies. Now, retail investors can invest like a bank and earn better returns and increase portfolio diversification, without sacrificing control over their investments.
Diversification is a key to better returns. Investors can easily create a diversified portfolio of Lending Club Notes. For example, a $10,000 investment can be spread across as many as 400 separate loans by purchasing $25 Notes – a small slice of each loan.
On average, Lending Club borrowers have a FICO score of 714 with 60% using the funds to consolidate debt and 25% to make a large purchase**. Lending Club’s underwriting and credit policies have produced a 2.27% annualized default rate+ as of April 30, 2010.
Lending Club Notes are offered by prospectus filed with the Securities and Exchange Commission.
Return calculation for Lending Club based on net annualized returns from June 2007 (first loan origination) to March 2010. This comparison does not reflect differences in liquidity. Past performance is no guarantee of future results.
*Net annualized return calculated from June 2007 to February 2010. Click here for additional details.
** Data as of 05/3/2010 – see more here.
+: see https://www.lendingclub.com/public/annualizedDefaultRateHelpPop.action
Lending Club notes are issued pursuant to a prospectus on file with the SEC.
You should review the risks and uncertainties described in the prospectus before any possible investment.
Currently only residents of the following states may invest in Lending Club notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY, LA, ME, MN, MO, MS, MT, NH, NV, NY, RI, SC, SD, UT, VA, WA, WI, WV, or WY. (KY: https://www.lendingclub.com/extdata/ky_prospectus.pdf)
This editorial does not constitute an offer to sell or to purchase securities, nor a solicitation of an offer to sell or to purchase securities in any jurisdiction in which such action would be illegal.
“The preceding article was provided by Lending Club. WebFinance has not independently confirmed the accuracy of the statements and opinions that the advertiser has expressed above, and is not responsible for claims made by the advertiser.”
