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Post by GSV3MIaC on Sept 20, 2017 7:55:45 GMT
Autobid never gave anyone a balanced portfolio, given the way D/Es or anything small/decent, were hogged .. unless by balanced you mean 'a spread of what nobody else wanted'.
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SteveT
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Post by SteveT on Sept 20, 2017 8:02:47 GMT
In the absence of much elsewhere that's worth lending to currently, I've decided to stick £4k back into my dormant old FC account, simply for the amusement value of seeing what I'm allocated...
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SteveT
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Post by SteveT on Sept 20, 2017 11:59:55 GMT
In the absence of much elsewhere that's worth lending to currently, I've decided to stick £4k back into my dormant old FC account, simply for the amusement value of seeing what I'm allocated... Curious. Amongst the six £20 loan parts it's already bought within a few hours of my transfer is a brand new Property Development loan (42889 Minsterley 1, 18 months, A+, 8%, £430k, 1st charge security, 59% LTV). I thought FC had stopped launching new property loans a while back? I've also picked up another A+, an A, 2 Bs and an E (actually not too smelly) so the new Autobid system seems to be working OK currently.
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ceejay
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Post by ceejay on Sept 20, 2017 13:09:34 GMT
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blender
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Post by blender on Sept 20, 2017 13:59:45 GMT
In the absence of much elsewhere that's worth lending to currently, I've decided to stick £4k back into my dormant old FC account, simply for the amusement value of seeing what I'm allocated... Curious. Amongst the six £20 loan parts it's already bought within a few hours of my transfer is a brand new Property Development loan (42889 Minsterley 1, 18 months, A+, 8%, £430k, 1st charge security, 59% LTV). I thought FC had stopped launching new property loans a while back? I've also picked up another A+, an A, 2 Bs and an E (actually not too smelly) so the new Autobid system seems to be working OK currently. A lot of the problems associated with property actually go away or are reduced with the new system, for small loans at least. What info do you get about the new loans - is there a full auction page with all the financials and investor reports and unused Q&A?
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SteveT
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Post by SteveT on Sept 20, 2017 14:39:01 GMT
A lot of the problems associated with property actually go away or are reduced with the new system, for small loans at least. What info do you get about the new loans - is there a full auction page with all the financials and investor reports and unused Q&A?
It's a long time since I last looked at a FC auction page but it all still seems to be much as I remember. Same useless 1 line Business Profile, same Credit Score charts, same Financial Summary (and Investor Report on the property loan), same Q&A tab (empty), same Repayments schedule. It even still lists how many "orders" (not bids) were placed before and after mine and all the lender names and sums invested. Aside from the BBB stakes (still shown as a single large part), the maximum part sizes are now £100 so bigger lenders end up with multiple parts allocated.
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Stonk
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Post by Stonk on Sept 20, 2017 14:53:45 GMT
It even still lists how many "orders" (not bids) were placed before and after mine and all the lender names and sums invested. Aside from the BBB stakes (still shown as a single large part), the maximum part sizes are now £100 so bigger lenders end up with multiple parts allocated. I'm very interested to know something from that section. Assuming you can still view "All bids", would you please switch between the "first" and "last" pages of all bids and letting us know how long an auction (or whatever it's called now) lasts? Please state the risk band and loan amount. Thank you!
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SteveT
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Post by SteveT on Sept 20, 2017 14:58:36 GMT
It even still lists how many "orders" (not bids) were placed before and after mine and all the lender names and sums invested. Aside from the BBB stakes (still shown as a single large part), the maximum part sizes are now £100 so bigger lenders end up with multiple parts allocated. I'm very interested to know something from that section. Assuming you can still view "All bids", would you please switch between the "first" and "last" pages of all bids and letting us know how long an auction (or whatever it's called now) lasts? Please state the risk band and loan amount. Thank you! Looking at a couple: £53k B took 4 minutes, with 847 orders listed (the number of unique lenders will be lower) £80k E took 8 minutes, 1583 orders £430k A+ property loan took 30 minutes, 7570 orders Incidentally, after allocating me 11 loan parts so far since 9am this morning, my Dashboard currently indicates a Gross Yield of 11.5% and Est. Fully Diversified Return of 7.6%, so it seems to be going in roughly the right direction (both figures were zero yesterday as I had no remaining Live loan parts at all).
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blender
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Post by blender on Sept 20, 2017 15:27:02 GMT
A lot of the problems associated with property actually go away or are reduced with the new system, for small loans at least. What info do you get about the new loans - is there a full auction page with all the financials and investor reports and unused Q&A?
It's a long time since I last looked at a FC auction page but it all still seems to be much as I remember. Same useless 1 line Business Profile, same Credit Score charts, same Financial Summary (and Investor Report on the property loan), same Q&A tab (empty), same Repayments schedule. It even still lists how many "orders" (not bids) were placed before and after mine and all the lender names and sums invested. Aside from the BBB stakes (still shown as a single large part), the maximum part sizes are now £100 so bigger lenders end up with multiple parts allocated. Thanks for that and for the other info below it. You could change your avatar to an image of a guinea pig, to illustrate the new role. A very brave guinea pig of course. Fearless in fact. Much of that info is now pointless - what is the good of the financials or the investor report if you do not get to see it before you are allocated a slice? And too much information will only lead to trouble after a default. I wonder if the whole loan investors (not FCIT) are allowed to see this info before accepting and may then pass the dubious parcels (sorry, the loans which do not fit their portfolio) back to the retail investors? Or are the whole loan investors also given no choice of loans, other than conservative or balanced or possibly liberal?
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Stonk
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Post by Stonk on Sept 21, 2017 22:59:56 GMT
£53k B took 4 minutes, with 847 orders listed (the number of unique lenders will be lower) £80k E took 8 minutes, 1583 orders £430k A+ property loan took 30 minutes, 7570 orders Thank you! Quite a change from the Old Days: that A+ would have taken all day, and the E about 30 seconds.
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Post by df on Sept 22, 2017 0:32:23 GMT
7.5% with no work. Lovely! Over the economic cycle perhaps 6%. Still lovely. We have to face it. Manual bidding is not a mass market offering. It is very much a niche, now offered by riskier platforms IMHO. That's the whole point. There are lots of people with some spare cash who want better return than banks/BS offer and don't have any time or/and knowledge to deal with manual investment. By joining the league of Zopa/RS/Landbay/etc. FC is aiming to attract a wider market of investors.
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Post by davie on Sept 24, 2017 14:06:06 GMT
Buying with fundingcircle was dodgy enough with way too many defaults. The prospect of no ability to choose borrowers has prompted me to do a firesale and just have a few unsaleables and an unrealistic hope that some defaulters may be recovered. Lendy/ Ablrate/ Fundingsecure being tried.
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neal
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Post by neal on Sept 24, 2017 15:19:35 GMT
I pulled my money out the day I received the letter explaining the change of terms. I didn't like the new terms.
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Post by mostlywrong on Sept 24, 2017 21:15:48 GMT
£53k B took 4 minutes, with 847 orders listed (the number of unique lenders will be lower) £80k E took 8 minutes, 1583 orders £430k A+ property loan took 30 minutes, 7570 orders Thank you! Quite a change from the Old Days: that A+ would have taken all day, and the E about 30 seconds. By my reckoning, there must be an awful lot of servers and hamsters at FC now doing nothing. Where are they going to go? And what will take their place? Will there be more space for the table tennis tables? The championships must be due anytime soon. Or an extended dance floor for the salsa classes? Will there be a redundancy programme for the hamsters? MW PS. See, I told you I was bored. This is only my 2nd post in 5 years....
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happy
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Post by happy on Sept 25, 2017 6:43:20 GMT
One of the reasons I ran this poll was to see if anyone here would opt for "conservative". My hunch would be that there is probably better value in the conservative option, but that hunch doesn't really stand up to much scrutiny. How some of the loans get rated as A/A+ has constantly surprised me, at least based on the accounts presented. Sometimes the accounts look blatantly wrong and autobid mops them up before FC bother to lift a finger. I have to say I've struggled to make much sense of FC's rating system - and I say that as someone who once upon a time could explain where Moody's methodology differed from S&P's. However, it may all make a little more sense if your credit process gives significant weight to Directors' guarantees. We don't get to see the quality of the PG, and given this is mostly unsecured lending the financial reserves of a company sponsor do make a difference - and it would chime with FC's head of risk coming from a consumer credit background (credit cards, as opposed to corporate lending or bonds). What will be interesting to see is how FC manages the relative demand for the conservative and balanced options. To generate 7.5% for the balanced they need a certain proportion of lenders to buy the conservative option. Demand for the two options is not necessarily going to match the existing loan book, and this is where it gets interesting. FC can either vary the rates offered to align demand with supply (e.g. offer a higher rate to tempt more into conservative), or they can skew their credit ratings to make the loan book fit the investor demand (start rating weaker A rated loans as Bs). Either way there is going to be a transfer of value in risk/reward terms between investors in the two options. Over time they can probably steer their loan origination to match demand more closely, but that will take time... As someone who remembers the good old days of proper FC variable rate auctions I watched with horror as the distribution of A+ to E loans changed beyond recognition when fixed rates auctions arrived and lenders didn't set the rates anymore. Suddenly slam dunk B, C, D & even E loans were coming in at A+ and were happily mopped up by Autobid with no issues. So I would not put it past FC to do whatever it takes to make the numbers work for them especially as they are effectively working in the dark now we have the "New Lending Experience" with us, or whatever they called it! I'm on the Long Road Out of Eden FC, about 6 years I estimate before my repaying defaults finally clear their debts.
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