Distributed Fixed Income

Equity-level returns from a fixed income asset class

Lending Club provides a peer to peer lending platform connecting borrowers and lenders. This enables investors to pick and choose personal unsecured loans to invest in. Applied Cadence has developed models which analyze Lending Club data to select the loans with the least likelihood of default. This includes proprietary data analysis which goes beyond the data provided by Lending Club. By utilizing the Distributed Fixed Income technology, investors have the potential to see equity level returns. This gives investors a significant edge when selecting loans to invest in.

Granular Loan SelectionApplied Cadence analyzes all loans provided by Lending Club. Choose only the loans you want to invest in.

Equity Level ReturnsUsing the DFI model, gain equity level returns with a fixed income asset class.

Customized Modeling SolutionsApplied Cadence can provide customized modeling solutions for other personal fixed income assets.

[1] Average DFI return is based off of annual returns for the DFI fund for the past 7 years. Average Lending Club return is based off of Lending Club statstics on the Lending Club website (https://www.lendingclub.com/info/statistics-performance.action). Over time, the DFI model has been continually improved, changed, and updated. Past performance is no indication of future results. Applied Cadence has no affilation with Lending Club.

Proven Track Record

Since inception seven years ago, the DFI model has produced returns of 8%-10% annually, performing in the 95th percentile based on account age and annual rate of return, compared to other investors at Lending Club.

This performance gives investors the potential to see equity level returns with the benefits of a distributed fixed income asset class. Furthermore, all loans issued by Lending Club are analyzed, giving investors the flexibility to choose which loans they invest in. DFI model scores can even be used to augment existing fixed income models.