On: LendingClub CEO Resigns Following Loan Sales Revie...

[forgetsusername]

>I've never seen a bond over 1%

The BAA Corporate index is 4.79%.

[loeg → forgetsusername]

And junk corporate bonds are probably less likely to default than LC loans.

[pmorici → loeg]

The difference between LC and a Junk corporate bonds is that with LC you are investing in hundreds of loans at $25 each. You can't get the same kind of diversification corporate bonds.

[dragonwriter → pmorici]

> The difference between LC and a Junk corporate bonds is that with LC you are investing in hundreds of loans at $25 each. You can't get the same kind of diversification corporate bonds.

Are diversified bond funds not a thing now?

[pmorici → dragonwriter]

I assumed we were talking about investing directly in the bonds. Even if you do an index fund though that 4.79% is ignoring fees. The LC returns being talked about are after fees.

[turar → dragonwriter]

Which bond funds would you recommend and what are their current rates?

[mmanfrin → loeg]

My after-default rate with LC for >1,000 loans is 6.7%. After default.