AutoInvest Step 2: Loanbase

The AutoInvest experiment continues. My first stop, as I documented already in AutoInvest Step 1 was BTCJam. Now it's time for the 2nd stop, Loanbase.

I've made no secret of the fact that while all the platforms do things well and all of them have shortcomings that Loanbase is my favorite for a combination of reasons. These reasons include things like user interface and better searching/filtering features for me to figure out which loans I want to invest in with my coin.

But this is AutoInvest. I don't get to pick. Let's see what Loanbase picks for me.

First, where is it? Like Jam, they make it nice and obvious for us to find it.

Autoinvest on LB

Here in the middle is the AutoInvest section and when we click on it, this is what we see.

Cautious AI plan on LB

Like Jam, here is where we are looking at our potential plans.

Plan Options

As you can see, we have 3 different plan options called Cautious, Balanced and Aggressive offering rates from 5.09% annually up to 7.8%. Whats the difference?

Cautious has only A and B rated loans with 23% A rated and 77% B rated.

Balanced includes some C loans with 15% A rated, 47% B rated and 38% C rated

Aggressive includes some D rated loans (and yes that is a beer in my hand in my profile pic) with a composition of 12.5% A rated, 38.8% B rated, 26.8% C rated and 21.9% D rated loans. They show us a cool little pie chart outlining these options which you will see in a second.

In my Announcement of this experiment, I said that the platform's own credit modeling was going to be put to the test and to truly test it for returns and defaults that I was going to pick the most conservative option, which in this case is the Cautious portfolio option. Here is how that looks.

Amt Budgeted for AI on LB

As you can see, I have 0.35 Bitcoin to invest in this platform until my next payments come in. Like on Jam, I selected the reinvestment option and it shows our cool little pie chart with 23% in A and 77% in B loans. That's what I'll get.

So as of today, I'm started on the Cautious plan on Loanbase.

Update on BTCJam

As you saw in Step 1, I started my AutoInvest plan on Jam with 1.0 Bitcoin. After 4 days in the AutoInvest plan, I'm currently invested in ZERO loans. One of the questions some of my readers and group members on FB had for me was if there would be enough good loans to qualify for AutoInvest or not. We shall see and it is too early to tell. Let's see if this dearth of loans continues or not.....

About the author

Stu Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending. Check me out on Twitter, LinkedIn and Google+

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