Following Lending Club woes - how exposed are listed lending funds?


Originally published at:
Investors were left a little shell shocked by the departure of the Lending Club CEO this week, following the discovery of irregular practices. We have taken a look at how exposed the investment trust lending sector is to Lending Club. LendingClub announced this week that Renaud Laplanche had resigned as Chairman and CEO of the…


I dont trust this sector at all. Most of these p2p funds that have launched has unbelievably high fees that just meen the founders get filthy rich regardless of the long term performance of their funds. I mean look at the base fees alone, they’re huge, then consider the performance fees. i think anyone who invests in any of this lot is plain bonkers mad!


VPC Speciality Lending might not have any exposure to Lending Club but it is still having to cut the dividend:

Some investors might be surprised to see leverage and securitisation amongst the reasons why. These things might be a bit more complicated than at (a cursory) first glance. Sub-prime revisited…?