Post by kilozulu on Oct 19, 2017 10:59:10 GMT
Last few days have shown an increase in interest rates for buybacks into a long not seen teritorry.
Previously buyback loan rates, except Mogo, were capped at 13-13.1% pa. Now Mozipo, Lendo and Aaasa have all offered 13.5%-13.7% p.a
It may be that October is a good months for pay-day lenders and they need more liquidity.
I don't see similar hikes in any of the other, single originator, platforms though.
Interesting if this is an aspect specific to Mintos - that presence of many originators at the same transparent platform forces them to act as a players in a competitive market. Looking at whats happening on single originator platforms, it seems they have at least to some extent loyal investor money pool, part of which is maybe in cash-drag mode, thus these platforms are able to take as much liquidity they need with much less fluctuations in interest rates they give.
If the above hypothesis is correct, then Mintos rates would over time fluctuate more in both directions, because keeping rates somewhat stable, not cutting agressively when markets slow, makes sense only if you try to keep your investor pool loyal. Btw this cutting aggressivly sub-hypothesis matches Twino experience some time ago.
Any views?
Previously buyback loan rates, except Mogo, were capped at 13-13.1% pa. Now Mozipo, Lendo and Aaasa have all offered 13.5%-13.7% p.a
It may be that October is a good months for pay-day lenders and they need more liquidity.
I don't see similar hikes in any of the other, single originator, platforms though.
Interesting if this is an aspect specific to Mintos - that presence of many originators at the same transparent platform forces them to act as a players in a competitive market. Looking at whats happening on single originator platforms, it seems they have at least to some extent loyal investor money pool, part of which is maybe in cash-drag mode, thus these platforms are able to take as much liquidity they need with much less fluctuations in interest rates they give.
If the above hypothesis is correct, then Mintos rates would over time fluctuate more in both directions, because keeping rates somewhat stable, not cutting agressively when markets slow, makes sense only if you try to keep your investor pool loyal. Btw this cutting aggressivly sub-hypothesis matches Twino experience some time ago.
Any views?
