Each quarter, Lending Club publishes a report to update investors on its platform and the broader economic environment. In its Q1 2019 Quarterly Platform Update released this week, Lending Club announced that it is retiring Grade E loans.
Lending Club cites a decline in investor demand for Grade E notes as well as other markeplace factors for the change.
As of May 7, 2019, Lending Club will no longer facilitate new Grade E loans except for previously qualified or approved loans, and effective July 1, 2019, no Grade E loans will be available on the platform.
According to the report, investors with allocations to Grade E notes might consider adjusting their manual or automated strategies to avoid cash drag.
The report also addresses ongoing measures the platform is taking to prepare for uncertain economic environments including actively monitoring interest rates, limiting certain high risk segments, and growing lower risk segments.