LENDX Fund Sees Surge in Redemption Requests
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy LC?
Source: seekingalpha
- Surge in Redemption Requests: According to media reports, Stone Ridge Asset Management informed clients that redemption requests for the LENDX fund surged, allowing only 11% of requested amounts to be redeemed, indicating broadening concerns about private credit.
- Asset Overview: As of the end of November, LENDX held $2.4 billion in total assets and $1.6 billion in net assets, suggesting challenges in asset management amid market volatility.
- Investor Confidence Eroding: The increase in redemption requests has shaken investor confidence in fintech loans from companies like Affirm and Block, reflecting escalating worries about consumer credit.
- Redemption Mechanism Constraints: As an interval fund, LENDX is required to repurchase at least 5% of outstanding shares each quarter, necessitating investors to submit redemption requests to exit their investments, further limiting liquidity.
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Analyst Views on LC
Wall Street analysts forecast LC stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 14.690
Low
20.00
Averages
23.00
High
26.00
Current: 14.690
Low
20.00
Averages
23.00
High
26.00
About LC
LendingClub Corporation is a bank holding company. The Company operates its business, through its subsidiary, LendingClub Bank, National Association (LC Bank). LC Bank is the digital marketplace bank in the United States where members can access a range of financial products and services designed to help them pay less when borrowing and earn more when saving. It offers a suite of deposit and loan products through a smart, simple and rewarding digital experience. LC Bank retains loans and funds those loans directly with its own capital and deposits. LC Bank’s primary loan products include unsecured personal loans, secured auto refinance loans, and patient and education finance loans. LC Bank’s commercial lending business is primarily focused on small businesses, and it participates in the United States small business administration lending programs. LC Bank’s deposit business includes sourcing deposits directly from customers and from third-party marketing channels and deposit brokers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of High Yield CD Rates Today
- Current Highest Rate: The highest CD rate today is 4.15% APY offered by LendingClub for an 8-month CD, indicating that in the current economic climate, long-term CDs do not necessarily provide higher rates as historically expected, which may influence savers' decisions.
- Interest Earnings Example: If you invest $1,000 in a one-year CD with a 1.52% APY, your balance will grow to $1,015.20 at the end of the year, demonstrating that even lower rates can yield some earnings, emphasizing the importance of selecting the right CD.
- Benefits of Larger Deposits: If the same one-year CD rate is increased to 4% APY with a deposit of $10,000, the total balance at maturity would reach $10,407.42, meaning you would earn $407.42 in interest, highlighting the direct impact of deposit amounts on earnings.
- Diversity of CD Types: Beyond traditional CDs, various types such as Bump-up CDs, No-penalty CDs, and Jumbo CDs offer different flexibility and earning potential, requiring savers to choose products that align with their needs to optimize investment returns.
See More
Current CD Rates Exceed National Averages
- Rate Trends: The Federal Reserve's three interest rate cuts in 2025 have caused fluctuations in deposit account rates, making current CD rates, which are above the national average, a potential last chance to lock in high rates.
- Highest CD Rate: The highest CD rate today is 4.15% APY, offered by LendingClub for an 8-month term, showcasing the competitive edge of online banks in the rate market.
- National Average Rates: As of March 2026, the national average interest rate for a 1-year CD stands at 1.52%, indicating that current CD rates are among the highest seen in nearly two decades, largely due to the Fed's inflation-fighting measures.
- CD Selection Tips: Choosing a CD with a high APY and appropriate term is crucial; it is advisable to compare rates from various financial institutions and consider the competitive rates and minimum deposit requirements offered by online banks.
See More
Opportunity to Lock in High CD Rates
- Current CD Rate Overview: With the Federal Reserve cutting rates three times in 2025, the best CD rate currently stands at 4.15% APY, offered by LendingClub for an 8-month CD, making it crucial for investors to lock in rates before potential further declines.
- Interest Earnings Calculation: For a $1,000 investment in a one-year CD at 1.52% APY, the end-of-year balance would be $1,015.20, illustrating that even lower rates can yield stable returns, emphasizing the importance of selecting the right CD.
- High Deposit Earnings: Choosing a one-year CD at 4% APY with a $10,000 deposit would result in a total balance of $10,407.42 at maturity, translating to $407.42 in interest, highlighting the direct relationship between deposit amounts and earnings.
- Diversity of CD Types: Beyond traditional CDs, investors can consider options like Bump-up CDs, No-penalty CDs, and Jumbo CDs, which may offer lower rates but provide greater flexibility and potential returns.
See More
LENDX Fund Sees Surge in Redemption Requests
- Surge in Redemption Requests: According to media reports, Stone Ridge Asset Management informed clients that redemption requests for the LENDX fund surged, allowing only 11% of requested amounts to be redeemed, indicating broadening concerns about private credit.
- Asset Overview: As of the end of November, LENDX held $2.4 billion in total assets and $1.6 billion in net assets, suggesting challenges in asset management amid market volatility.
- Investor Confidence Eroding: The increase in redemption requests has shaken investor confidence in fintech loans from companies like Affirm and Block, reflecting escalating worries about consumer credit.
- Redemption Mechanism Constraints: As an interval fund, LENDX is required to repurchase at least 5% of outstanding shares each quarter, necessitating investors to submit redemption requests to exit their investments, further limiting liquidity.
See More
CD Rates Decline but Remain Competitive
- Current CD Rates Overview: Short-term CDs (6 to 12 months) currently offer rates between 4% and 4.5% APY, with the highest rate at 4.1% provided by Synchrony Bank and LendingClub, indicating that despite the overall decline, CDs remain attractive compared to traditional savings accounts.
- Historical Rate Trends: Since 2009, CD rates have experienced significant fluctuations, with the average one-year CD rate around 1% and five-year CDs below 2%, reflecting the impact of economic slowdowns and Federal Reserve rate cuts.
- Impact of Economic Policies: Following the COVID-19 pandemic, the Fed raised rates 11 times, leading to higher CD rates; although rate cuts began in 2024, current CD rates still remain above historical averages, signaling signs of economic recovery.
- Factors in Choosing CDs: When selecting a CD, it is essential to consider not only the high APY but also the term length, type of financial institution, and account terms to ensure alignment with personal financial goals and maximize returns.
See More
LendingClub Stock Holds Steady Amid Market Challenges
- Strong Revenue Growth: LendingClub has achieved an impressive 25.7% annualized revenue growth over the past five years, surpassing the average in the financial sector, indicating a strong alignment between its offerings and customer needs, thereby enhancing its market competitiveness.
- Positive EPS Turnaround: The company's earnings per share (EPS) has flipped from negative to positive over the last five years, highlighting a pivotal moment in its profitability and suggesting potential for sustained growth in the future.
- Lagging Stock Performance: Despite a slight 4.7% decline in stock price over the past six months, trailing the S&P 500's 5.1% gain, LendingClub's current forward P/E of 8.6 may present a buying opportunity for investors looking to enter the market.
- Increased Market Attention: As LendingClub's fundamentals gain recognition in the market, investors may anticipate a rebound in its stock price, particularly if overall market sentiment improves.
See More
Analysis of High Yield CD Rates Today
- Current Highest Rate: The highest CD rate today is 4.15% APY offered by LendingClub for an 8-month CD, indicating that in the current economic climate, long-term CDs do not necessarily provide higher rates as historically expected, which may influence savers' decisions.
- Interest Earnings Example: If you invest $1,000 in a one-year CD with a 1.52% APY, your balance will grow to $1,015.20 at the end of the year, demonstrating that even lower rates can yield some earnings, emphasizing the importance of selecting the right CD.
- Benefits of Larger Deposits: If the same one-year CD rate is increased to 4% APY with a deposit of $10,000, the total balance at maturity would reach $10,407.42, meaning you would earn $407.42 in interest, highlighting the direct impact of deposit amounts on earnings.
- Diversity of CD Types: Beyond traditional CDs, various types such as Bump-up CDs, No-penalty CDs, and Jumbo CDs offer different flexibility and earning potential, requiring savers to choose products that align with their needs to optimize investment returns.
See More
Current CD Rates Exceed National Averages
- Rate Trends: The Federal Reserve's three interest rate cuts in 2025 have caused fluctuations in deposit account rates, making current CD rates, which are above the national average, a potential last chance to lock in high rates.
- Highest CD Rate: The highest CD rate today is 4.15% APY, offered by LendingClub for an 8-month term, showcasing the competitive edge of online banks in the rate market.
- National Average Rates: As of March 2026, the national average interest rate for a 1-year CD stands at 1.52%, indicating that current CD rates are among the highest seen in nearly two decades, largely due to the Fed's inflation-fighting measures.
- CD Selection Tips: Choosing a CD with a high APY and appropriate term is crucial; it is advisable to compare rates from various financial institutions and consider the competitive rates and minimum deposit requirements offered by online banks.
See More
Opportunity to Lock in High CD Rates
- Current CD Rate Overview: With the Federal Reserve cutting rates three times in 2025, the best CD rate currently stands at 4.15% APY, offered by LendingClub for an 8-month CD, making it crucial for investors to lock in rates before potential further declines.
- Interest Earnings Calculation: For a $1,000 investment in a one-year CD at 1.52% APY, the end-of-year balance would be $1,015.20, illustrating that even lower rates can yield stable returns, emphasizing the importance of selecting the right CD.
- High Deposit Earnings: Choosing a one-year CD at 4% APY with a $10,000 deposit would result in a total balance of $10,407.42 at maturity, translating to $407.42 in interest, highlighting the direct relationship between deposit amounts and earnings.
- Diversity of CD Types: Beyond traditional CDs, investors can consider options like Bump-up CDs, No-penalty CDs, and Jumbo CDs, which may offer lower rates but provide greater flexibility and potential returns.
See More
LENDX Fund Sees Surge in Redemption Requests
- Surge in Redemption Requests: According to media reports, Stone Ridge Asset Management informed clients that redemption requests for the LENDX fund surged, allowing only 11% of requested amounts to be redeemed, indicating broadening concerns about private credit.
- Asset Overview: As of the end of November, LENDX held $2.4 billion in total assets and $1.6 billion in net assets, suggesting challenges in asset management amid market volatility.
- Investor Confidence Eroding: The increase in redemption requests has shaken investor confidence in fintech loans from companies like Affirm and Block, reflecting escalating worries about consumer credit.
- Redemption Mechanism Constraints: As an interval fund, LENDX is required to repurchase at least 5% of outstanding shares each quarter, necessitating investors to submit redemption requests to exit their investments, further limiting liquidity.
See More
CD Rates Decline but Remain Competitive
- Current CD Rates Overview: Short-term CDs (6 to 12 months) currently offer rates between 4% and 4.5% APY, with the highest rate at 4.1% provided by Synchrony Bank and LendingClub, indicating that despite the overall decline, CDs remain attractive compared to traditional savings accounts.
- Historical Rate Trends: Since 2009, CD rates have experienced significant fluctuations, with the average one-year CD rate around 1% and five-year CDs below 2%, reflecting the impact of economic slowdowns and Federal Reserve rate cuts.
- Impact of Economic Policies: Following the COVID-19 pandemic, the Fed raised rates 11 times, leading to higher CD rates; although rate cuts began in 2024, current CD rates still remain above historical averages, signaling signs of economic recovery.
- Factors in Choosing CDs: When selecting a CD, it is essential to consider not only the high APY but also the term length, type of financial institution, and account terms to ensure alignment with personal financial goals and maximize returns.
See More
LendingClub Stock Holds Steady Amid Market Challenges
- Strong Revenue Growth: LendingClub has achieved an impressive 25.7% annualized revenue growth over the past five years, surpassing the average in the financial sector, indicating a strong alignment between its offerings and customer needs, thereby enhancing its market competitiveness.
- Positive EPS Turnaround: The company's earnings per share (EPS) has flipped from negative to positive over the last five years, highlighting a pivotal moment in its profitability and suggesting potential for sustained growth in the future.
- Lagging Stock Performance: Despite a slight 4.7% decline in stock price over the past six months, trailing the S&P 500's 5.1% gain, LendingClub's current forward P/E of 8.6 may present a buying opportunity for investors looking to enter the market.
- Increased Market Attention: As LendingClub's fundamentals gain recognition in the market, investors may anticipate a rebound in its stock price, particularly if overall market sentiment improves.
See More
