Stu’s Portfolio Report: May 2015

Another month has come and gone and there have been some changes to my portfolio that I will go into more detail on further down.This is the monthly report for May where I outline my USD returns on Prosper and Lending Club and my BTC returns which have higher rates and higher defaults.

A reminder, I have 2 loan portfolios on Lending Club; a regular one using my Credit methodology and a High Rate/High Yield portfolio where I use some of my methodologies but actively seek out yield the same way many of you investors do.

The first change you will see is I put out another private loan for 6 months to an old client for ~$1800. I count it in the total numbers but like usual, I also do platform only loans.

5/31/2015 Interest Rec'd Net Interest Principal Rec'd Principal Remaining ROI
Bitcoin Loans 50.9 50.9 384.2 1133.62 1.77%
Private Loan 56.53 56.53 263.28 1744.86 3.24%
Prosper Loans 31.33 29.3 65.62 2644.37 1.11%
Lending Club Loans 31.14 28.17 56.55 2611.18 1.08%
High Rate Portfolio on LC 14.37 13.38 10.69 1033.02 1.30%
Totals 184.27 178.28 780.34 9167.05 1.94%
Bitcoin loans based on BTC price at month end of $230
Platform Only Loans Amount Lent Net Interest
Bitcoin Loans 2876.74 50.9
Amount Invested in Prosper 2500 29.3
Amount Invested in LC 3500 41.55
Total in the Platforms 8876.74 121.75
Monthly Interest Rate on Loans 1.37%
Annualized Rates 16.46%

The biggest change to my Bitcoin returns is an addition. My returns would have been close to 2% but still below my 2.5% monthly goal on my primary platforms. However, I have cash drag, or in this case Bitcoin or coin drag as I added a new platform, Bitbond. I added 1.5 BTC to Bitbond that is invested with no payments due yet so I marked it as zero like non-payment. So my returns are down to 1.77% for the month, still not bad but below my goal.

Another addition is the private loan, as discussed above.

On my BTC loans, a few of my loans (3 to be exact) are tied to the same borrower, which is a mistake I won't make again and defaults are still higher than the USD world but a couple platforms are really trying to help us investors out by tightening up the verification process. Thankfully, my best and biggest borrowers continue to pay reliably and thus my platform only return was a 16.46% annualized, not too shabby.

Since all of my Lending Club and Prosper loans paid on time this month, the high yield portfolio benefits the most as it earned 1.30% as compared to 1.08% and 1.11%, respectively. Even at 1.08%, I'm still looking at an annualized return of 12.96% for not much risk. I'll take it.

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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