And junk corporate bonds are probably less likely to default than LC loans.
The difference between LC and a Junk corporate bonds is that with LC you are investing in hundreds of loans at $25 each. You can't get the same kind of diversification corporate bonds.
> The difference between LC and a Junk corporate bonds is that with LC you are investing in hundreds of loans at $25 each. You can't get the same kind of diversification corporate bonds.
Are diversified bond funds not a thing now?
I assumed we were talking about investing directly in the bonds. Even if you do an index fund though that 4.79% is ignoring fees. The LC returns being talked about are after fees.
Which bond funds would you recommend and what are their current rates?
My after-default rate with LC for >1,000 loans is 6.7%. After default.