poppyland
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Post by poppyland on Dec 27, 2017 12:58:53 GMT
Hi guys, I'm new to Ablrate, but am an "old hand" with Lendy and FS. I don't really like holding loans to term, so on Lendy I sell at around 100 days left, and on FS I never take out renewal loans, and never roll over loans either. Mostly this means I get my capital back with interest before the loan due date, or at the latest, at six months. How would I pursue a similar strategy with Ablrate? Or is it more of a long-term thing? Your best tips would be very much appreciated. Thanks
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archie
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Post by archie on Dec 27, 2017 13:11:27 GMT
A lot of loans here are amortising so you get part of your capital back each month alongside the interest.
I'll leave it to others to give you tips.
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poppyland
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Post by poppyland on Dec 27, 2017 13:23:11 GMT
Thanks. It's always weird getting to grips with a new platform, and getting small amounts of capital in each month will be new for me, but I guess it works.
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elliotn
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Post by elliotn on Dec 27, 2017 13:25:15 GMT
Most loans are longer term, say, 1-4 years so short term flipping makes less sense and buy-sell prices fluctuate regularly so you may miss out by selling early. Also, if you really need capital, you have the option to sell at a small discount which should help take away your 100 day anxiety.
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Post by GSV3MIaC on Dec 27, 2017 15:43:35 GMT
poppyland .. once you have signed up, just look at the 'secondary market' tab and you will see that almost all loans are always available to buy (albeit possibly at a premium) and also to sell (usually at a discount, unless they are very popular), at least in small-£k quantity (if you want to unload £100k, you may have to do it piecemeal). You can place bids to buy (if you have capital) or offer to sell (if you have loan parts) at pretty much any price you like, so if you just want out, and there are no buy bids you can offer to sell £x at 99% (i.e. a 1% discount) and wait for the stampede - no stampede? Try 98% then ..
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garfield
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Post by garfield on Dec 27, 2017 15:46:17 GMT
Hi, I've only been with ABL for 4-5 months. There's a bit of a learning curve, but that's to be expected. There are quite a few loans to the same borrower(s), so get to know which these are. Else be prepared to take your time getting invested. The SM does bob up and down, but there are new automated "Portfolio Loans" expected in the New Year. Whenever new loans are up for grabs, there's generally more selling (turnover) and at reasonable (near par) prices. There's a lot of good about ABL and I find it doesn't take up too much of my time.
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poppyland
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Post by poppyland on Dec 27, 2017 17:23:24 GMT
Thanks everyone for your advice. It seems this platform is very different from FS and Lendy, and I think the strategy I will adopt is to diversify and hold to term, rather than have rapid turnover and redeployment. I appreciate the tips on how to sell, and on spotting loans that are basically the same loan again. On another note, it's good to see everyone being so positive about Ablrate. The Lendy forum in particular seems very doom and gloom these days.
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nw99
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Post by nw99 on Dec 27, 2017 22:06:40 GMT
The secondary market here is the best of all the platforms . You can trade away till your hearts content .
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ceejay
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Post by ceejay on Dec 28, 2017 10:00:07 GMT
I like the site and the way it all works.
But I find diversification difficult as there aren't a huge number of loans and not all of them meet my personal criteria, and there are quite a few duplicate borrowers. For this reason I've not yet been able to invest anything like as much as I'd planned. Maybe I'm just being impatient, of course!
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Post by GSV3MIaC on Dec 28, 2017 12:54:28 GMT
You probably are, but there's no way you can meet the 'no more than 1% in any one loan' (let alone 'with any one borrower') just using ABLRate on its own .. but the same is true of many other platforms. You either have to pile in to whatever seems good to you (risky) or spread your funds across several platforms (more work, but better from several perspectives, IMO).
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brianlom1
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He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Dec 28, 2017 18:23:42 GMT
The secondary market here is the best of all the platforms . You can trade away till your hearts content . The customer service is also the best of any P2P company I've dealt with ;-)
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blender
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Post by blender on Dec 28, 2017 19:35:32 GMT
Hi Poppyland, I am not sure that diversify and hold is a good strategy for Ablrate because of the low number of loans generated and the fact that many of them are connected in some way, which you may or not consider significant. The first thing to do is to decide how much you wish to place with this platform and over what period - it is a small platform with some large loans. I am a big fan of Ablrate (and a constructive critic) and am always keen to justify placing as much as I dare here. My diversity is very poor here, but I think I can justify a good chunk of each new loan (or most of them) if I am always trading and exchanging new loans for old. There are no SM fees and you can usually sell at par on average. And the instant returns help. I think this strategy actually supports the platform growth.
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Post by df on Dec 28, 2017 19:42:19 GMT
I like the site and the way it all works. But I find diversification difficult as there aren't a huge number of loans and not all of them meet my personal criteria, and there are quite a few duplicate borrowers. For this reason I've not yet been able to invest anything like as much as I'd planned. Maybe I'm just being impatient, of course! Diversification is my priority so I'm in a similar position with ABL. You have to be patient, it can take long to build a desired portfolio. The fact that many loans are long term helps, but I'm still far from my investment target with ABL.
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poppyland
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Post by poppyland on Dec 29, 2017 11:13:05 GMT
Hi Poppyland, I am not sure that diversify and hold is a good strategy for Ablrate because of the low number of loans generated and the fact that many of them are connected in some way, which you may or not consider significant. The first thing to do is to decide how much you wish to place with this platform and over what period - it is a small platform with some large loans. I am a big fan of Ablrate (and a constructive critic) and am always keen to justify placing as much as I dare here. My diversity is very poor here, but I think I can justify a good chunk of each new loan (or most of them) if I am always trading and exchanging new loans for old. There are no SM fees and you can usually sell at par on average. And the instant returns help. I think this strategy actually supports the platform growth. Thanks blender, and everyone. I've been playing around with a small amount of money on Ablrate and beginning to understand it better. I ultimately want to invest this year's entire ISA allowance of 20k, and can see that buying largish chunks of new loans, plus a few bits of older loans, and then reducing the size of holdings in older loans as more new things become available might be a good strategy. I can also see that holding to term wouldn't be necessary provided you are willing to sell at par or slightly below. The returns seem amazing - like the heyday of SS, or even better - but I'm a bit spooked by all the capital equipment loans. What's Ablrate's default record so far, or is there a specific thread on this already?
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hazellend
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Post by hazellend on Dec 29, 2017 11:16:45 GMT
One default due to naivity and a run in with a particularly devious borrower
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