Just wanted to let everyone know that the kind folks at LendingClub are offering a $25 sign up bonus for new lenders for the month of November only. If your interested click here to sign up. (Thanks Rob)

I have checked out their site and here are some comparisons to Prosper:

• Borrowers are screened more thoroughly. Better quality listings but lower quantity compared to Prosper
• Minimum bid amount is $25 vs $50 for Prosper
• LendingClub has their secondary market running already. Prosper is still in the quiet period.
• User interface seems easier to learn then Prosper’s, however advanced search seems to be lacking
• Similar to Prosper, I think the best credit grades to invest in are B and C

Furthermore, I chatted with Rob from LendingClub to get a feel for the company. Overall a positive experience. Here’s what I learned:

• They filter borrowers before they are approved to request a loan on the site. (90% are rejected)
• There is a credit approval status for each listing, status can be either ‘In Review’ or ‘Approved’. Approved listings many times have their employment and income verified.
• How interest rates are set. From my perspective, the interest rates should be higher to account for the credit environment we’re in.

Overall, I’ll be testing the site out with a small amount of money in the coming months to monitor performance etc.

I’m currently sitting at my computer and CNBC is interviewing Renauld Laplanche from LendingClub about peer to peer lending. They also mentioned Prosper and Zopa in a text blurb at the bottom of the screen. Prosper should get themselves an interview on CNBC. :)

In other news “AIG said it would need to alter the way it values credit default swaps involving collateralized debt obligations. CDOs are funds that contain slices of bonds, some of which are backed by mortgages.” (link)

I found this picture particularly interesting to sum up the current environment.