Monthly Archives: April 2011

Why Loan Descriptions and Q&A matter

Recently Lending Club instituted a new policy concerning investor interactions with potential borrowers. Previously, investors could ask potential borrowers basically anything at all, and borrowers could respond at will. The new policy, presumably done to protect borrower privacy, restricts investor … Continue reading

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April 2011: Loans By Credit Letter Density Plots

In a previous post, I examined density plots of all Lending Club loan data as of April 1, 2011.  I used past loan data to estimate the rate of return for each previously available loan at Lending Club.  Now I … Continue reading

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Estimating the Probability of Default

With Lending Club, an investor can invest in a portfolio of loans.  But how will those loan perform, and which loans to pick?  In order to say anything meaningful about what loans to choose, we must first estimate how loans … Continue reading

Posted in Modeling, Modeling Loan Transitions | Tagged , , , , , | 2 Comments

April 2011: All Loans Density Plots

Let’s start off by looking at data for all existing loans at Lending Club. Specifically, the plots below are based on loan data downloaded on April 1, 2011 from Lending Club’s website. I will leave it to future posts to … Continue reading

Posted in All Loans, Density Plots | Tagged , , , | 1 Comment