My Portfolio – Portfolio Breakdown

The Portfolio Breakdown box will show your notes from your most recent uploaded notes.csv broken down by your LendingClub Portfolio tag, and by the Strategies you have saved in your profile.

After either the Portfolio name or the Strategy name, the columns in the tables are:

  • Notes: The number of notes in the uploaded file
  • Original Investment: Amount you funded
  • Principal Remaining: Your fraction of the unpaid principal balance of all the loans
  • Issued Principal: Your fraction of the unpaid principal balance of all loans issued at least one month before
  • Payment To Date: Total amount received for the notes
  • Avg Rate: Weighted average interest rate of all notes
  • Loss Rate: Percent of principal considered lost, calculated based on the current status of the loans
  • Monthly Payment: Expected monthly income of notes in issuing or current status
  • Avg Term Remaining: Weighted average number of months for the maturity of the notes
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Definition: Loss Rate

The Loss Rate is calculated in Interest Radar based on the current status of the loan and the expected default rate for that particular status. Performing loans have 0% Loss Rate for the purpose of this indicator, regardless of its grade.

When the Loss Rate is used in the context of a group of loans (that meet a certain criteria or that are part of a portfolio), the calculation is the weighted average Loss Rate for all loans in that group. For the specific case of the Loss Rate shown in the analysis page, the average is not weighted, as the recommendation is that you will not fund a loan as a proportion of its total principal, but, for the sake of diversification, a fixed amount (normally $25) for all loans.

The following expected default rates are used when calculating the Loss Rate:

  • Fully Paid: 0%
  • Current: 0%
  • Performing Payment Plan: 35%
  • In Grace Period: 16%
  • Late (16-30 days): 23%
  • Late (31-120 days): 47%
  • Default: 100%
  • Charged Off: 100%

The expected default rate is calculated on the remaining principal balance, not the entire loan amount. For example:

  • The loan term is 36 months. Before the first payment ever, the debtor enters the grace period. The Loss Rate for that loan will be 100% principal x 16% expected default rate = 16%
  • The loan term is 36 months. After paying 35 installments, the debtor enters the grace period. The Loss Rate for that loan will be 3.697% unpaid principal x 16% expected default rate = 0.59%

My Portfolio – Cash Flow

The Cash Flow box will try to reconstruct the investments and payments received from the notes you possess. The process is very approximate, as the notes.csv file does not contain payment information, only summary numbers. That means Interest Radar must infer payment dates, payoff dates, and replicate interest accrual. The final figures will be approximate, but will help you understand how your performance is in LendingClub compared to more traditional investment alternatives, that are normally presented in a cash flow format.

The columns in the table are:

  • Month: The calendar month for the entry
  • Investments Executed: Funded amounts during the month, based on the Issued Date, not the date you actually picked the loan for funding
  • Payments Received: Amount received in payments during the month, both to pay interest and amortization
  • Losses Incurred: Amount charged off, based on the default date and not the date the loan was considered in default or charged off
  • Principal Balance: Unpaid principal balance by the beginning of the month
  • Interest Payments: Part of the payment amount that went to pay interests (the actual returns of your investments)
  • Annualized Return Rate: The income during that month as a percentage of the principal amount at the beginning of the month; this is the closest indicator of the actual interest rate being charged

And the results are:

  • UPB (Unpaid Principal Balance): How much money the borrowers still owe you, or, how much principal you still hold in notes
  • IRR (Internal Rate of Return): The IRR of your financial life in LendingClub, using the compound interest formula

 

My Portfolio – Portfolio History

For the current month, the Portfolio History box will keep track of each notes.csv file uploaded, with the exception of duplicate uploads during the same day. When you upload a notes.csv file for the second time in the same day, the previous uploaded file will be replaced.

For previous months, only the last upload of the calendar month is displayed.

The columns in the table are:

  • Date: The month and day the data was uploaded
  • Notes: The number of notes in the uploaded file
  • Principal: Remaining principal for all notes
  • Avg Rate: Weighted average interest rate of all notes
  • A-G: Percentage of the principal invested in each credit grade
  • 36, 60: Percentage of the principal invested in each loan term
  • Issuing: Amount committed to loans that are either in funding, in review or that were issued but the first payment is not yet due (these last ones are shown as Current in LendingClub)
  • Performing: Percent of the issued principal (i.e. loans issued over a month before) that is current or in a performing payment plan (payments are coming in)
  • Late/Default: Percent of the issued principal that is not current, but is not charged off yet
  • Charged Off: Percent of the issued principal that is charged off
  • Fully Paid: Total amount of payments received on loans that are fully paid