- LendingClub has an interesting, all-weather business model that produces several synergies.
- During difficult times, it can use the information generated by its marketplace to seek out the best risk/reward borrowers for its own underwriting business.
- There is a large amount of operating leverage in the business model as the one-time fees from the marketplace roughly cover the OpEx.
- The shares seem pretty cheap to us, anticipating a substantial deterioration of credit quality that might not happen.
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LendingClub Has A Killer Business Model