michaelc
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Post by michaelc on Mar 13, 2018 15:58:03 GMT
Following others, I decided to compute my all time interest to default. It is 426% !!! The all time interest figure I read from the MT page Funds->Statement->Interest_Recevied The defaults figure I got from summing the cash in my defaulted loans. Then I divided the defaults figure by the interest (and multiplied by 100).
No wonder I'm pi****d off.
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sj
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Post by sj on Mar 13, 2018 16:00:37 GMT
Interest to default, or default to interest? I-to-D of 426% would mean that you've made more in interest than you have tied up in default. Your method calculates what I would consider default-to-interest.
Do bear in mind that default does not equal 100% loss of capital (well, probably not) so it's not all so bad.
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jlend
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Post by jlend on Mar 13, 2018 16:04:55 GMT
Following others, I decided to compute my all time interest to default. It is 426% !!! The all time interest figure I read from the MT page Funds->Statement->Interest_Recevied The defaults figure I got from summing the cash in my defaulted loans. Then I divided the defaults figure by the interest (and multiplied by 100). No wonder I'm pi****d off. Fingers crossed a high proportion of the defaulted £9m on MT will be recovered. There will always be defaults, it is what it is. For me the quality of the recovery process is what is important.
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Post by carol167 on Mar 13, 2018 16:15:25 GMT
My all time interest earnings from MT are £1758 and I've currently got £2000 locked in defaulted loans. I have the remaining property loan amounts up for sale and will withdraw/sell non property stuff as and when to slowly withdraw from the platform.
I am much happier with black box platforms that give me circa 6-8%. I still think MT is ok - just not for me anymore at this time.
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hantsowl
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Post by hantsowl on Mar 13, 2018 16:37:19 GMT
Even with a total write-off of the MT default loans I am still well in profit from interest earned. The same can be said from all of my p2p investments with 2 exceptions. One is Collateral where it is unclear at this stage whether i will eventually be well in profit or loss. The other is FS where I am stuck in a number of loans, some defaulted, some simply unavailable to sell, and these add up to more that I received in interest.
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michaelc
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Post by michaelc on Mar 13, 2018 16:43:27 GMT
Interest to default, or default to interest? I-to-D of 426% would mean that you've made more in interest than you have tied up in default. Your method calculates what I would consider default-to-interest. Do bear in mind that default does not equal 100% loss of capital (well, probably not) so it's not all so bad. Sorry yes default to interest.
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Post by sayyestocress on Mar 13, 2018 16:52:59 GMT
Have MT recovered any defaults thus far?
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Post by dan1 on Mar 13, 2018 17:00:20 GMT
Have MT recovered any defaults thus far? Yes on a couple of high-end cars (borrower MTAF). No completed recoveries on property as yet.
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Post by sayyestocress on Mar 13, 2018 19:33:21 GMT
Have MT recovered any defaults thus far? Yes on a couple of high-end cars (borrower MTAF). No completed recoveries on property as yet. Ah OK, thanks. Been out of the MT loop for a while. I'd like to see a successful property recovery before dipping back in.
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macro
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Post by macro on Mar 13, 2018 20:44:38 GMT
i welcome others to buy my holdings. i welcome others to buy my holdings. A new mantra? One more posting should do it Look into my eyes. Now, buy mine. Buy mine, now.
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hazellend
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Post by hazellend on Mar 13, 2018 20:53:53 GMT
Following others, I decided to compute my all time interest to default. It is 426% !!! The all time interest figure I read from the MT page Funds->Statement->Interest_Recevied The defaults figure I got from summing the cash in my defaulted loans. Then I divided the defaults figure by the interest (and multiplied by 100). No wonder I'm pi****d off. Interest to default isn’t a useful metric until recovery is known
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Post by GSV3MIaC on Mar 13, 2018 21:21:02 GMT
Well it sets the "worst case" .. except, of course, that if you don't/can't exit whatever you still have then there's no guarantee things worn't rapidly worsen. There's plenty over on Ly which are not actually defaulted, but might as well be (or might turn out to be, before anyone can get out of them) .. in some cases merely 'suspended', which is similar to 'zombie'.
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michaelc
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Post by michaelc on Mar 13, 2018 23:19:31 GMT
Following others, I decided to compute my all time interest to default. It is 426% !!! The all time interest figure I read from the MT page Funds->Statement->Interest_Recevied The defaults figure I got from summing the cash in my defaulted loans. Then I divided the defaults figure by the interest (and multiplied by 100). No wonder I'm pi****d off. Interest to default isn’t a useful metric until recovery is known Why not? If (default to interest) is less than 100% then one is guaranteed not to lose. As you imply, there are many other factors at play but this is something simple to calculate and gives a very quick indicator of the current health of your loan book. Besides, it wasn't my idea to use this....
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pom
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Post by pom on Mar 14, 2018 8:17:54 GMT
Whilst default to interest might give pause for thought (or even a wake up call for some!) or warm n fuzzies it's pretty meaningless for comparisons either with other investors or across platforms, being far too dependent on how long you've been using a platform, how quickly you built up your investment and how evenly diversified you are, and if across platforms, how they define/handle defaults. So all very interesting to think about and refine any strategies that have got a bit out of hand but we'll need to see the results of at least all the crop of current ones to really be able to judge the platform.
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archie
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Post by archie on Mar 14, 2018 8:56:35 GMT
I think the new loan status would be better as a traffic light rather than a title update.
Green for performing, Orange for non-performing, Red for default.
Edit : Just in case anyone is colour blind the 'Orange' light could have a black cross in the middle and the 'Red' light an exclamation mark.
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