Lending Club Statistics
Investor Account Performance
This chart shows the performance of all investor accounts on the Lending Club platform that have invested in at least 100 Notes. Use the controls to the right of the chart to customize which accounts are highlighted and to visualize how different factors can influence returns.
You can customize the weighted average Note age of the selected investors by moving the red bar at the bottom of the chart. Remember that this reflects the weighted average age of the Notes in a portfolio, and not the age of the account.
Minimum Number of Notes
Maximum Note size is less than
of total portfolio value
Weighted Average Interest Rate
The purpose of this chart is to illustrate how returns change over the life of an investment and how different factors can influence the volatility of returns. By exploring the controls next to the chart, you can visualize how the number of Notes, investment concentration, average interest rate, and average Note age impact the returns on a particular investment.
This chart uses data from actual Lending Club accounts. It is not a prediction of how a particular portfolio will actually perform. The actual performance of any particular portfolio may be impacted by, among other things, the size and diversity of the portfolio, the exposure to particular Notes or group of Notes, as well as macroeconomic conditions, and may perform differently than those accounts presented in this chart.
Use the controls on the chart to customize the population of 'selected investors' that you would like to highlight and to explore how different factors impact the volatility and level of investment returns.
Populations of accounts that are more tightly grouped around the median line may have less volatile returns. Populations of accounts that are more spread out vertically may have more volatile returns.
Owning a small number of Notes typically leads to more volatile returns. For example, if an account includes 4 Notes and the corresponding loans are all fully performing, the returns will likely be higher than average for some period of time. However, if one of the corresponding loans charges off, the account value will decrease substantially and the returns will be much lower than other accounts.
Diversification - spreading your investment equally across many Notes - may help drive more stable returns. Learn more.Concentration of an investment
Concentrating an investment in a few Notes rather than spreading the investment evenly across many Notes can also lead to more volatile returns. For example, if one Note represents 50% of a portfolio and the corresponding loan is fully performing, the returns will likely be high relative to other accounts for a period of time. However, if the corresponding loan charges off, the account will see a dramatic reduction in returns.Weighted Average Interest Rate
Returns may be more stable on Notes with lower interest rates because the corresponding loans are expected to have lower charge off rates. Returns on accounts with lower average interest rates often start lower but may decrease less over time than accounts with higher average interest rates.
Returns typically decline over the life of an investment as some of the corresponding loans enter past due status and charge off. In the chart, the weighted average age refers to the age of Notes in a portfolio, not the age of the account or the time period in which the Notes were issued.
Accounts with the same weighted average interest rate may have different composition and different returns. For example, an account that includes Notes of all grades might be more volatile than an account that includes only B and C grade Notes, despite having the same weighted average interest rate. While this is a general guideline, it is certainly not true in every case. There are many portfolios that perform somewhat differently from this.Performance
To understand this investment, you must understand that some loans charge off. If a portfolio happens to include a higher or lower number of loans that charge off, the overall performance will deviate from that of similar accounts, regardless of average interest rate.Vintage
Vintage, or the time period when a Note was issued, can influence returns in several ways. For example, the credit policy that was in place when a loan was issued or the macroeconomic conditions during a particular time period may result in higher or lower returns for a particular set of Notes.
This chart does not illustrate performance by vintage; the accounts included in this chart include Notes with various vintages.Buying and Selling Notes on the Note Trading Platform
This chart only includes accounts that have not transacted on the Note Trading Platform. NAR and Adjusted NAR do not capture all of the factors influencing returns for accounts that trade on the Note Trading Platform.
1. Investor population: Includes accounts with at least 100 Notes and no activity on the Note Trading Platform. We have not shown information for accounts with fewer than 100 Notes because the volatility in such accounts is not representative of long term platform performance.
2. Selected accounts: Includes accounts as specified by the controls next to the chart. None of the accounts have transacted on the Note Trading Platform. We have excluded information for accounts with Notes traded on the Note Trading Platform because these Notes may be sold at a premium or a discount to their outstanding principal and their performance against that premium or discount is not representative of long term platform performance.
3. 90th percentile: 90% of returns for selected accounts are less than or equal to this value.
4. Median: Indicates the midpoint of returns for selected investor accounts.
5. 10th percentile: 10% of returns for selected accounts are less than or equal to this value.
Benefits of Diversification
These charts illustrate how diversification-spreading an investment equally across hundreds or even thousands of Notes-can drive more solid returns. Lending Club investors with more diversified accounts have generally experienced less volatility and more solid returns than investors with more concentrated holdings. Diversification increases when you purchase additional Notes related to different borrower loans.
This chart demonstrates how greater diversification, or owning more Notes, can reduce the volatility of returns. Moving from left to right in the chart, the number of Notes per account increases and the lines in the chart get closer together.
This illustrates that as accounts hold more and more Notes, each Note represents a smaller portion of the total and their returns may become more stable and consistent.
This chart shows that diversified accounts-those with at least 100 Notes of relatively equal size-are more likely to have positive returns.
- Accounts with more than 100 Notes and with no Note representing more than 1% of the total account value are the most likely to have positive returns.
- Accounts with fewer than 100 Notes and with some Notes possibly representing more than 1% of the total account value are the most likely to have negative returns.
Diversification helps to limit the impact of any single charge off by spreading your money across many different Notes. For example, say you have $2,500 to invest in Lending Club Notes. You could invest:
- $2,500 in one borrower; or
- $25 in 100 different borrowers.
If you invest in one borrower and that borrower becomes late and the loan eventually charges off, you could potentially lose 100% of your total investment amount.
If you invested a relatively equal amount in 100 different borrowers and that same borrower becomes late, your potential loss on that particular Note would be limited to 1% of your total investment amount.
Charts include accounts that have a weighted average Note age of 12 months or older, hold at least 5 Notes and have not transacted on the Note Trading Platform.
1. Adjusted NAR is a return measure that models potential losses on an investment before a loan is actually charged off. It is calculated by applying a loss rate estimate to the outstanding principal on any past-due loans. The loss rate estimate is Lending Club's estimate of the charge off rate on past-due loans over the next 9 months, which is based on historical loan performance.
2. 90th Percentile: 90% of accounts have returns that are less than or equal to this value.
3. Median: Half of accounts have returns that are less than or equal to this value.
4. 10th Percentile: 10% of accounts have returns that are less than or equal to this value.
* Data in these charts is for informational use only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These charts are not intended to be, nor should you interpret them to be, a prediction of how a particular portfolio will actually perform. You should always carefully consider investments in any security and you should be comfortable with your understanding of the investment. You may also consider consulting investment professionals.