rogedavi
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Post by rogedavi on Mar 1, 2018 9:16:21 GMT
Collateral goes kaput - the natural question we should all be asking is: Who's next?
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invester
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Post by invester on Mar 1, 2018 9:25:54 GMT
If we look at the reasons why, I guess any firm without an FCA authorisation, or a lapsed interim one will be next.
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TitoPuente
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Post by TitoPuente on Mar 1, 2018 9:28:36 GMT
Collateral goes kaput - the natural question we should all be asking is: Who's next? Collateral did no go "kaput". It was put under administration for a technicality relating to the FCA authorisation. Just to be clear, the company is not insolvent.
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rogedavi
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Post by rogedavi on Mar 1, 2018 9:36:25 GMT
I'm sure that distinction will be comforting for the investors.
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poppyland
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Post by poppyland on Mar 1, 2018 9:38:41 GMT
Maybe they knew things were going badly for the business, and so they deliberately let their FCA approval lapse in order for them to be placed in administration without having to declare that they were in trouble - just an idea of course, but it seems more plausible than them just not "noticing" that their FCA interim approval wasn't valid anymore.
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elliotn
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Post by elliotn on Mar 1, 2018 9:39:19 GMT
Collateral goes kaput - the natural question we should all be asking is: Who's next? Collateral did no go "kaput". It was put under administration for a technicality relating to the FCA authorisation. Just to be clear, the company is not insolvent. Although tbf it was running losses with negative liabilities in its last accounts.
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TitoPuente
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Post by TitoPuente on Mar 1, 2018 10:09:42 GMT
Collateral did no go "kaput". It was put under administration for a technicality relating to the FCA authorisation. Just to be clear, the company is not insolvent. Although tbf it was running losses with negative liabilities in its last accounts. Without inquiring what is a "negative liability", and with zero intentions to have a interchange of thoughts about this, I want to remark that a company can make a loss without being insolvent. Most startups and young companies have operating loses during early years without falling into insolvency.
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Post by justdabbling on Mar 1, 2018 11:35:12 GMT
The timing at the end of the tax year is unfortunate as there must be many investors like myself who withdraw cash from P2P at this time of the year to put in pensions and flexible ISAs for tax purposes. My little bits won't alarm anyone but there could be the appearance of a run on other platforms as Collateral investors try to access their funds from other platforms for tax reasons.
It will probably be a good time for those wishing to pick up investments.
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Post by jackpease on Mar 1, 2018 11:52:08 GMT
>>>Although tbf it was running losses
I think most of them are making losses which doesn't narrow it down!
I wonder if the extreme negativity towards mature platforms and the 'I'm out' call when defaults emerge will slacken and dampen recommendations to switch to small, young, 'default free' firms who 'communicate well'?
Jack P
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Post by vaelin on Mar 1, 2018 11:52:20 GMT
It's not a situation that would result in contagion because the failure of Collateral was not caused by a systemic risk.
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Post by mrclondon on Mar 1, 2018 12:12:16 GMT
It's not a situation that would result in contagion because the failure of Collateral was not caused by a systemic risk. Yes, that is the strict definition, but I think the queston needs to take into account the consequences of COL's administration, which is in the short term at least going to be a loss of lender appetite on similiar platforms making funding new loans hard work. The clue to answering the question posed is in MT's update this morning "we operate a stable business model that includes ongoing revenue from interest and does not rely solely on new loan origination." (my bold). If there is any platform needing fees from ongoing loan origination for their survivial, they will be feeling a bit uncomfortable this morning.
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hazellend
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Post by hazellend on Mar 1, 2018 12:16:21 GMT
It's not a situation that would result in contagion because the failure of Collateral was not caused by a systemic risk. Yes, that is the strict definition, but I think the queston needs to take into account the consequences of COL's administration, which is in the short term at least going to be a loss of lender appetite on similiar platforms making funding new loans hard work. The clue to answering the question posed is in MT's update this morning "we operate a stable business model that includes ongoing revenue from interest and does not rely solely on new loan origination." (my bold). If there is any platform needing fees from ongoing loan origination for their survivial, they will be feeling a bit uncomfortable this morning. It might increase lender demand on the other platforms due to less competition
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hazellend
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Post by hazellend on Mar 1, 2018 12:22:58 GMT
It's not a situation that would result in contagion because the failure of Collateral was not caused by a systemic risk. Yes, that is the strict definition, but I think the queston needs to take into account the consequences of COL's administration, which is in the short term at least going to be a loss of lender appetite on similiar platforms making funding new loans hard work. The clue to answering the question posed is in MT's update this morning "we operate a stable business model that includes ongoing revenue from interest and does not rely solely on new loan origination." (my bold). If there is any platform needing fees from ongoing loan origination for their survivial, they will be feeling a bit uncomfortable this morning. It might increase lender demand on the other platforms due to less competition
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bigfoot12
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Post by bigfoot12 on Mar 1, 2018 17:54:00 GMT
It might increase lender demand on the other platforms due to less competition You can say that again!
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alanp
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Post by alanp on Mar 2, 2018 9:40:21 GMT
I'm sure that distinction will be comforting for the investors. It is to me as one of those investors
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