How should I price my Notes?
The price of a Note is determined by the seller. The rules of the marketplace require that a Note not be priced at a markup greater than 70% of the total value of accrued interest and outstanding principal or that would otherwise produce a negative yield to maturity. Neither Folio Investing nor Lending Club provide investment advice and you should consult your financial advisor if you have questions about the value of a Note.
Information regarding the loan status, term remaining, Borrower payment history, and the Borrower’s most recent credit score, as well as other factors, may impact the way that buyers and sellers value the corresponding Note.
If you want to sell a Note corresponding to a loan that is past-due, you may be interested in historical information about loan status migration provided by Lending Club, which can help you understand how the status of loans has changed historically over time. Please click here to access this information. Please keep in mind that past performance is not a guarantee of future results and that actual loan status migration may vary significantly from historical migration.