COVID-19 Investor Special
The COVID-19 virus has caused unprecedented volatility as the markets continue to be affected by the human health and economic toll of the pandemic.
Unprecedented Times Call For a Closer Eye on Your Investments
During times of market volatility, it’s particularly important to carefully consider all risk factors and features of an investment product before investing, including how the investment might be affected by market conditions. It’s also important to remember that historical returns do not necessarily reflect the returns you’ll see during a downturn period. If you look at historical market performance, it’s easy to see periods of volatility affected performance in the short term.
It’s No Different at LendingClub, Where Historical Platform Returns are Not a Guarantee of Current or Future Performance
We are taking deliberate measures on our platform to do right by our borrowers and to aim to protect our investors’ returns. These measures include tightening credit to reduce exposure to riskier borrower segments. However, as with any investment, LendingClub’s past platform performance is no guarantee that it will perform the same way now (during this time of uncertainty) or in the future.
Factors contributing to the current market volatility are all-time high unemployment claims, an unprecedented federal stimulus package—both in size and speed to distribution—and the uncertainty about how long the COVID-19 shelter-in-place orders will last.
What Can You Do to Help Protect Your Investment? Diversify Your LendingClub Note Portfolio
Spreading your investment dollars across multiple asset classes and securities within those asset classes could reduce the impact if one security experiences significant losses. The same principle applies to LendingClub Notes because each Note has exposure to the credit risk of a corresponding borrower. If the borrower defaults and the loan charges off, the Noteholder will likely suffer a loss. Diversifying your investment across multiple Notes takes some risk off the table, because if one borrower doesn't pay back their loan, that investment loss may be offset by other borrowers that do.
How Notes Fit in to the Macroeconomic Shifts Caused by COVID-19
With the economy shifting in nearly every way due to the COVID-19 shelter in place orders, you should expect that most, if not all, assets may be affected. Since we launched our platform and LendingClub, investors have considered Notes and/or consumer credit to be a portfolio diversifier, often thought of as a fixed income alternative. With market volatility happening, it’s a good idea to check in with your financial advisor or trusted investment professional to make sure your total portfolio, including where LendingClub Notes fit in, is allocated to suit your unique financial needs and goals.
Looking to cut costs on expenses or earn more income? We may be able to help
In times of uncertainty, we know that every dollar coming in or going out matters. In addition to investing, expenses and income are important pieces of your personal financial picture. With millions of Americans now looking for ways to cut costs on expenses and/or find new income streams—we’re excited to offer our members two new services that may help improve their financial situation: Trim and Steady*.
Trim: An Assistant That May Help You Cut Costs on Expenses
Trim is an online service that acts as your personal financial assistant to identify where you can cut costs on expenses. For example, Trim can help to negotiate your cable, internet, phone, and medical bills. You can sign-up for free and start your potential cost cutting today.
Steady: Work, Earn & Build Your Income
Steady is an online service that can help you find your next full time, remote, part-time, or gig job. Discover new work opportunities and unlock new sources of potential income through Steady. Consider setting up your free account today to start earning.
*LendingClub is compensated for referrals to Trim and may receive compensation from Steady for accounts created through this partnership. By clicking one or both links, users are leaving LendingClub’s website. LendingClub is not responsible for the content of Trim or Steady’s website(s). LendingClub does not represent either the third party or the member if the two enter into a transaction. Privacy and security policies of the alternate website(s) may differ from those practiced by LendingClub.