This month, we are launching a new series for investors—LendingClub’s Marketplace Insights—to share periodic insights into how LendingClub’s marketplace works and how it performs. In this first issue of LendingClub Marketplace Insights, we will focus on loan interest rates and their impact on an investor’s total return.
When it was founded 10 years ago, LendingClub began offering investors access to consumer credit through its online marketplace. Ever since, an increasingly diverse set of investors—from individuals and financial advisors to institutions and banks—have used the platform to seek to achieve their financial goals. Because the asset class is new to many, it’s important to understand there are four primary factors that can impact the net return on an investor’s LendingClub portfolio: loan interest rates, loss of principal and interest due to charge-offs, prepayments, and fees. While each of these components is important, as is the case with all fixed income assets, interest rates are key to an investor’s total return.
See below for highlights or read the full LendingClub Marketplace Insights piece here.
Some Factors that Influence Loan Interest Rates on the LendingClub Platform
For more information on Marketplace Insights, please contact us at email@example.com or (888) 596-3159 from 7 am – 5 pm PT, Monday – Friday. Institutional investors can contact us at firstname.lastname@example.org.