kaya
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Post by kaya on Dec 31, 2017 16:46:54 GMT
Collateral have had a good year, but the markets are now looking tired. A real secondary market could help bring positive change, i.e. a genuine market where buyers and sellers create the current value of a loan. Discounting will greatly help liquidity and allow cashback hunters to pass on some of their spoils. Premiums will allow the chance for more investing in the coveted bling. A vibrant secondary market is essential, and will help movement on the primary market. Ablrate perhaps has the best secondary market now, and Lendy the worst. It might also be a good idea to discontinue the unpleasant (illegal?) practice of not paying interest on selling loans.
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Post by many38 on Dec 31, 2017 17:02:48 GMT
If you do PLEASE, PLEASE don't use the Ablrate model. I'm not a novice but I just can't get my head around it even after reading the explanation 3 times. Result is I've never sold or bought on their SM. Don't have a problem with FS, FC or Lendy's SM
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kaya
Member of DD Central
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Post by kaya on Dec 31, 2017 17:15:33 GMT
Don't know what to say then. Try sticking your head in it, that might work. Stick the heid in! Try buying and selling a pound or two, follow the 'calculations', and see what happens! Happy New Year when it comes.
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SteveT
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Post by SteveT on Dec 31, 2017 17:43:04 GMT
If you do PLEASE, PLEASE don't use the Ablrate model. I'm not a novice but I just can't get my head around it even after reading the explanation 3 times. Result is I've never sold or bought on their SM. Don't have a problem with FS, FC or Lendy's SM What’s confusing you, out of interest? You can either buy or sell immediately, at the best available Offer / Bid market rate (expressed as the %AER). Or you can wait, in the hope of doing better, and post your own Bid or Offer, deciding what level of Premium or Discount you’re happy to trade at (Par being 100%).
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Post by beeje13 on Dec 31, 2017 17:45:08 GMT
I don't think that would reduce the relatively large amount on the SM. There's been a few large loans recently.
Particularly BL00079, which makes up more than half of the SM availability on it's own - and there isn't much confidence in it going by the reception on here.
I'm not sure if halting interest is illegal - but removing this would imbalance things even more as people would list more loans without worrying about losing out on interest. And it works well with the cashback system COL like to use (although I am not a fan of cashback myself).
Liquidity isn't an issue for me as I expect to hold to term any loans I buy.
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Post by elephantrosie on Jan 1, 2018 2:42:42 GMT
i havent logged into my cols account a lot this month because of the "unique" appearance of SM. nothing interesting. same investors, extended loans.
today i did log in to withdraw money from my account thought. not going to invest more in the same loan.
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kaya
Member of DD Central
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Likes: 718
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Post by kaya on Jan 2, 2018 10:03:21 GMT
Ooh look! Yet another thread about how “real” markets with discounts and premiums would be “better for all”Well thanks for voicing your opinion paul123, this is the whole idea of creating a thread - to invite debate and hear opinions, whether they agree or not. However I do kinda dislike being falsely quoted (my bold above), with the suggestion that I therefore consider you to be an 'illiterate muppet'. I actually agree that their is truth in what what you say, but perhaps it is you that wants to stifle any debate. Happy New Year!
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Joss
Posts: 18
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Post by Joss on Jan 2, 2018 10:30:28 GMT
Personally I don't mind Collateral's secondary market system; it's nice and simple.
I don't think it's the SM that's the problem; I think it's the quality of the recent loans that is affecting lender confidence (at least it is in myself). I'm rapidly losing faith in their DD...
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Post by Deleted on Jan 2, 2018 10:40:02 GMT
Every few months we get a
1) There are not enough loans
2) There are too many loans
crisis
there are often a series of threads to suggest a way of gingering it up.
What is normally forgotten is the long view of
1) Christmas always has a stiffling affect on the commercial market as does August
2) The number of slightly dodgy people who can only get 18% plus loans for business ventures is relatively small and so relatively volatile
3) The number of deals that (see 2) so relatively volatile
4) Secondary markets don't help the portal or the borrower, they just let the lenders flex their loans, so it only really interests 1 party in the game but is paid for by the other two parties
5) If you want to get easy access to your capital, keep it in a bank.
Have a Happy New Year and play nice
Count Bobo
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Post by GSV3MIaC on Jan 2, 2018 11:55:18 GMT
/mod hat on Happy New Year, and can we please keep the debate friendly (at least until later in the year). Thanks. /mod hat off I don't even use Coll at the moment, but my general comment is that it isn't a 'market' unless there is the opportunity to vary the price &/or the quantity available. And discounts/premia are not 'better for all', I don't think anyone ever suggested that (a quick search may prove me wrong), but they are not 'worse for anyone', unless it encourages/permits 'corner the market' tactics (i.e. buy it all, sell to the real customers at a fat premium) - and there are other solutions for that. Oft times I would buy something at a fat discount which I wouldn't touch at par, and I'd sell something for an instant profit (i.e. at a mark up) which I'd otherwise be happy to hold. However the SM models are set by the platforms before you sign up, and getting them changed is not going to be easy (although FC just changed theirs, by dictat), plus HMRC rules on buying/selling at non-par prices are a problem for platforms, and may be a bigger issue before long (see comments by MoneyThing over on their forum, when they declined to allow discounting .. at least they did think about it, and collect inputs, which I'm not sure the Coll have). There may also be some threads about it in the general forum, and there certainly are on the Ly one. Anyone who trades S&S, or commodities, would be boggled at the concept of 'you can only buy/sell at this price' (not even in country X does that work), but P2P has some learning to do. |
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Post by GSV3MIaC on Jan 3, 2018 9:13:53 GMT
Appreciate the moderate reply paul123 ... must go look up that book, since it sounds like it might be worth a read. The older I get, the more I worry about the way the planet / race is headed. |
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