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Post by investor1925 on Mar 8, 2018 12:42:14 GMT
I'm not sure "general thoughts" or even recommendations means much given how quickly things can change. Until recently Col would have been top of many peoples lists. The alternative would be to come into the platform completely blind (apart from my own rudimentary DD and looking around at past loans), whilst past performance is of course not indicative of future performance I don't have a crystal ball so this is about the best I can think to do besides just sticking some funds in and grabbing some loans. Col was indeed at the top of my list, Platform failure was very low on my list of anticipated risks - such is life I guess; expect the unexpected. But I'm not chasing 10%+ returns thinking I'm running a risk free venture. I do appreciate your comment though, I had 80% decided to dip a toe into MT already unless any red warning flags were posted here. Having read through this thread, I decided to have a quick look at some of my investments & below is a list of those where I've managed to assess the default status: MT 28.56% defaulted LY 36.39% defaulted FS 9.7% listed as overdue, not defaulted FC 4.83% defaulted, some recovered
I'm also invested in Ablrate, Assetz, Ratesetter, Unbolted & Collateral, but haven't yet managed to find out which loans are "defaulted"
Having said all that, I've yet to experience a default that was not fully paid back to me eventually, apart for the ones on FC, but am holding my breath regarding a certain "castle" on the LY platform.
What is it they say about houses - Location, Location Location.
Well here it's all Diversification, Diversification, Diversification.
Whatever you have, spread it around as much as you can. Don't consider the defaults as failures, but just as a reduction in the overall return that you are getting. That way, you won't lose sleep over it. Even if all of my defaults crashed & burned & were lost forever, I'd still be worse off in the bank.
Good luck
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pom
Member of DD Central
Posts: 1,922
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Post by pom on Mar 8, 2018 13:03:26 GMT
I'm a fan of MT but that standpoint comes mainly from their open and communicative method of operating which builds a certain level of trust, but as mentioned above don't allow this to create faith beyond common sense. I find my current default status highlights this warning! On Lendy who take a pretty constant battering on here and often quite rightly, my default to interest earned to date ratio is 53% Compared to MT who are often the darling of the forum, where my default to interest earned to date is an eye-watering 183% I've been on both platforms for the same amount of time and have committed the same amount both financially and in time making investment decisions. Perhaps this figure is even more worrying given MT have yet to recover anything from a property default at this stage in their own development! Although you've been on both platforms the same duration it's perhaps still not that direct a comparison given how long Lendy generally wait to default loans. All speculation until losses are crystallised anyway, but it's probably easier for me to be relaxed when my defaults only total 65% of my interest to date, for which I can't take that much credit other than for having started earlier
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Post by winger on Mar 8, 2018 15:28:37 GMT
Even if all of my defaults crashed & burned & were lost forever, I'd still be worse off in the bank.
It would pay us all to recite that mantra 3 times before getting into bed – we might sleep easier!
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Post by Deleted on Mar 8, 2018 15:54:39 GMT
I'm a fan of MT but that standpoint comes mainly from their open and communicative method of operating which builds a certain level of trust, but as mentioned above don't allow this to create faith beyond common sense. I find my current default status highlights this warning! On Lendy who take a pretty constant battering on here and often quite rightly, my default to interest earned to date ratio is 53% Compared to MT who are often the darling of the forum, where my default to interest earned to date is an eye-watering 183% I've been on both platforms for the same amount of time and have committed the same amount both financially and in time making investment decisions. Perhaps this figure is even more worrying given MT have yet to recover anything from a property default at this stage in their own development! Although you've been on both platforms the same duration it's perhaps still not that direct a comparison given how long Lendy generally wait to default loans. All speculation until losses are crystallised anyway, but it's probably easier for me to be relaxed when my defaults only total 65% of my interest to date, for which I can't take that much credit other than for having started earlier Absolutely no doubt it's not a straight comparison and in most areas I'd still recommend MT over Lendy, but it stands as a warning to not always follow the hype and over expose on any one platform!
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Post by Deleted on Mar 8, 2018 16:03:45 GMT
I look at what people did before they joined P2P, how well they customer interface and how many think IT is the solution to real life (which it ain't).
Like you I restrict new investments on FS to non property (and non boat), both of which the core team has no experience of.
MT are experienced at property and they know you have to be out in the field. The defaults don't worry me, and I think having Ed back in Ops is a real step forward. I'm moving from 40% invested in MT to 50%.
Lendy blew it for me when they stated roughly "the previous activities of our borrowers has no bearing on their ability/willingness to pay the lenders back", such non-real world view and their on going lack of customer facing skills means I'm just waiting to get my money back. "Thanks for all the fish" would seem about right there. Could they turn this position around? Yep.
ABL is worth a look, the boss has been in real businesses and had a few learning opportunities, it would be nice if they had a few more un-connected customers and I limit my actual individual loans until I get some serious cash back. Any cash that does not go to MT to goes to ABL as it flushes out of the other ones.
I would not lend to anyone else at the moment.
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michaelc
Member of DD Central
Posts: 4,896
Likes: 2,768
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Post by michaelc on Mar 8, 2018 17:23:32 GMT
I wasn't overly happy with the platform initially due to the difficulty of getting loans. As a MT novice at the time, I didn't realise that the loans I was getting were only available a few hours or next day after launch because they weren't popular and typically for a reason. That lead to rapid and high default ratios.
One of them, the Prestb**y loan was updated some weeks ago (before Xmas?) that it was going to be repaid with full capital and interest. There were not many folk on its dedicated thread that were at least a little skeptical.
As portrayed in many films the stock markets of old were exciting places to be. "BUY BUY..." "SELL SELL...". p2p feels a bit like that with people lurching from one extreme to another. For me, MT has just peaked on the confidence curve, and is heading downwards.
I very much hope I am proved wrong.
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Post by elephantrosie on Mar 8, 2018 21:26:10 GMT
i welcome others to buy my holdings.
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Post by elephantrosie on Mar 8, 2018 21:26:23 GMT
i welcome others to buy my holdings.
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Post by elephantrosie on Mar 8, 2018 21:28:25 GMT
The alternative would be to come into the platform completely blind (apart from my own rudimentary DD and looking around at past loans), whilst past performance is of course not indicative of future performance I don't have a crystal ball so this is about the best I can think to do besides just sticking some funds in and grabbing some loans. Col was indeed at the top of my list, Platform failure was very low on my list of anticipated risks - such is life I guess; expect the unexpected. But I'm not chasing 10%+ returns thinking I'm running a risk free venture. I do appreciate your comment though, I had 80% decided to dip a toe into MT already unless any red warning flags were posted here. Having read through this thread, I decided to have a quick look at some of my investments & below is a list of those where I've managed to assess the default status: MT 28.56% defaulted LY 36.39% defaulted FS 9.7% listed as overdue, not defaulted FC 4.83% defaulted, some recovered
I'm also invested in Ablrate, Assetz, Ratesetter, Unbolted & Collateral, but haven't yet managed to find out which loans are "defaulted"
Having said all that, I've yet to experience a default that was not fully paid back to me eventually, apart for the ones on FC, but am holding my breath regarding a certain "castle" on the LY platform.
What is it they say about houses - Location, Location Location.
Well here it's all Diversification, Diversification, Diversification.
Whatever you have, spread it around as much as you can. Don't consider the defaults as failures, but just as a reduction in the overall return that you are getting. That way, you won't lose sleep over it. Even if all of my defaults crashed & burned & were lost forever, I'd still be worse off in the bank.
Good luck
Really?
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keystone
Member of DD Central
Posts: 713
Likes: 575
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Post by keystone on Mar 9, 2018 0:31:36 GMT
i welcome others to buy my holdings. i welcome others to buy my holdings. A new mantra? One more posting should do it
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Post by mattygroves on Mar 9, 2018 12:18:58 GMT
Having read through this thread, I decided to have a quick look at some of my investments & below is a list of those where I've managed to assess the default status: MT 28.56% defaulted LY 36.39% defaulted FS 9.7% listed as overdue, not defaulted FC 4.83% defaulted, some recovered
I'm also invested in Ablrate, Assetz, Ratesetter, Unbolted & Collateral, but haven't yet managed to find out which loans are "defaulted"
Having said all that, I've yet to experience a default that was not fully paid back to me eventually, apart for the ones on FC, but am holding my breath regarding a certain "castle" on the LY platform.
What is it they say about houses - Location, Location Location.
Well here it's all Diversification, Diversification, Diversification.
Whatever you have, spread it around as much as you can. Don't consider the defaults as failures, but just as a reduction in the overall return that you are getting. That way, you won't lose sleep over it. Even if all of my defaults crashed & burned & were lost forever, I'd still be worse off in the bank.
Good luck
Really? I've been in p2p since 2007 although only in Zopa for most of that time so targetting easy and low returns. I've been with MT for 18 months and haven't got enough invested in p2p to warrant the extra time I would need to spend going for more diversification. I would need a 75% recovery on my defaults to be in a better position than if I'd put the money into a bank for that period of time. I'm confident that eventually I'll achieve this although it may take a while. If they completely crash and burn then I end up with the same capital I started with but will have lost 11 years of bank interest. Defaults are to be expected and I'm sure that whatever happens I'll end up with better returns than my Carrillion shares !
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Post by investor1925 on Mar 9, 2018 14:55:58 GMT
Really? I've been in p2p since 2007 although only in Zopa for most of that time so targetting easy and low returns. I've been with MT for 18 months and haven't got enough invested in p2p to warrant the extra time I would need to spend going for more diversification. I would need a 75% recovery on my defaults to be in a better position than if I'd put the money into a bank for that period of time. I'm confident that eventually I'll achieve this although it may take a while. If they completely crash and burn then I end up with the same capital I started with but will have lost 11 years of bank interest. Defaults are to be expected and I'm sure that whatever happens I'll end up with better returns than my Carrillion shares ! A bit of a sweeping statement I made earlier. It actually depends on a lot of variable factors like when during the repayment process it defaults, what the original interest rates were & how long they've been held, what the recovery rate was, if any etc, etc Interesting to note that a live, non-default FC loan paid back £120 of capital + interest yesterday (one of those property developments) This meant that my outstanding live lending dropped, whilst my defaults remained the same, so the % of defaults went up to 5.06%. Still, I'm not panicking yet
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Post by flobberchops on Mar 11, 2018 13:42:10 GMT
My P2P experience in general has soured recently. Collateral has gone belly up along with my three-figure holding, ReBS is being its usual volatile self, and MoneyThing - alas, my one-time favourite platform who I believed could do no wrong - is looking a lot less rosy.
In figures, my current MT defaults represent 138% of my all-time platform interest (so I stand to make a loss, worst case) and 70% of my all-time, all-platform interest. That could bring my overall interest down to just under 4% per annum, so technically better than a bank savings account, but considerably more hassle when you consider the hours spent managing bids, balancing and so on.
The high number of withdrawals shown in the latest pipeline email is also far from a cause for optimism - although the primary and secondary markets aren't exactly wanting either. All in all I would judge that both lender and borrower confidence in MT has taken a real blow.
Still, I'm sticking with MT for the time being and continuing to reinvest interest. I do hope we get some good news soon regarding recovery.
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Post by flx123 on Mar 13, 2018 15:28:41 GMT
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nyneil
Member of DD Central
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Post by nyneil on Mar 13, 2018 15:42:45 GMT
MT are definitely making an effort to be transparent and customer focused and IMO are much better at this than any of the other platforms i'm invested in.
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