re: Lending Club Strategies

A's aren't worth the trouble. The rates are way too low. B's have been over targeted recently because they are the "safest" with a real return. C's and D's (particularly D's) are being skipped over by both the safety seekers and the yield pigs. Fs and Gs are complete crapshoots, but even with the high rate, don't sufficiently reward you for the drastic decrease in credit quality. That means the yield pigs are in E's which has pinched the available supply. Going from C to E gives you less than a 1% increase in expected return.

I generally find it difficult to determine the difference between C's and D's by just looking at the credit metrics, which is why I lump them together.