Last week LendingClub reported its Q3 2022 results, and the key takeaway was that the demand for marketplace loans finally started weakening. Investors increased their return expectations as the Federal Reserve keeps rising rates, and the company is being cautious about passing through those rate increases to the borrowers. The uncertainty about the economy doesn’t give a reason to believe that this is a temporary bump on the road, so, we now get to witness a period of the loan portfolio being the key revenue driver.
Well written. LC is a long term hold that can make one a millionaire.