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Post by ladywhitenap on Mar 30, 2018 10:39:30 GMT
As per subject really. I had a modest punt on a couple but getting close to my diversification limit of having enough with returning borrowers. Is this what is putting off others too? Do we need to recruit some fresh lenders or just some new borrowers perhaps?
LW
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SteveT
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Post by SteveT on Mar 30, 2018 10:48:11 GMT
Raising almost £1.1m of new funding within a week feels pretty decent to me. I can't remember the last time Ablrate had 3 large loans available in parallel (if it's ever happened before) so it doesn't surprise me that they'll take a while to fill.
It's only a week until lenders can start funding their 2018/19 ISAs, which is likely to unleash more funds, and if 1000072 repays imminently (per Wednesday's email) then there's another £380k seeking a new home. 1000069 (£321k) is also due to repay within 2 weeks.
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Post by Butch Cassidy on Mar 30, 2018 10:49:23 GMT
Asking existing lenders for just short of £3m to fund existing borrowers (nothing wrong in principle but many lenders are already fully exposed to these borrowers) over the Easter weekend & at the end of the tax year/IFISA deadline was always going to be a big challenge, especially given the wider backdrop of P2P platforms various other difficulties (Col, Ly, MT etc).
I have no doubt these will fill eventually perhaps even needing a small incentive such as cashback but they appear solid propositions; no better or worse than many other Abl loans.
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ceejay
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Post by ceejay on Mar 30, 2018 10:49:44 GMT
Do we need to recruit some fresh lenders or just some new borrowers perhaps? Both, I'd say. I've put nothing in the new loans - not that there is anything intrinsically wrong with them, but I've already lent enough to these borrowers. I would like to like Ablrate, but the shine is rapidly fading for me. I love the way the site works, but if they can't attract some new borrowers then they're not going anywhere but my money might be.
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sirius
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Post by sirius on Mar 30, 2018 10:51:23 GMT
I have not put anything into these loans as I am already at my limit with these borrowers.
We do need new borrowers in order to diversify and lower risk.
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blender
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Post by blender on Mar 30, 2018 11:21:46 GMT
I have not put anything into these loans as I am already at my limit with these borrowers. We do need new borrowers in order to diversify and lower risk. Right about the need for new borrowers, and to be cautious about too much risk with one borrower, even with separate defined physical security - as with 80 and 98. However, the way I am looking at 98 is this. The loan pays 15% in instant returns and then in interest. It has a fixed period of 8 months, finished late December, as with 80. So there is no risk of early repayment, even if the development funding is gained 'early'. The interest payments are prefunded - so that it cannot miss any payments. Therefore it looks a good place to park substantial funds for, say, six months, during which time the SM can be used (subject to buyers) to reduce the sum as the longed-for new borrowers come along. Personally I am looking at this to start a 2018 ISA, which was to have gone to FC this time. The risk, of course, is that it does not fill, but at least you get the money back with the instant returns. I stress this relates only to my personal circumstances and interests.
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nw99
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Post by nw99 on Mar 31, 2018 20:10:19 GMT
Agreed , would expect new money in after 5/4 for the new ISA’s would expect cheap offers in the secondary to be hoovered up.
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upland
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Post by upland on Apr 1, 2018 6:55:23 GMT
I too feel that it is in effect a small pool of borrowers and that limits my lending.
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nw99
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Post by nw99 on Apr 1, 2018 7:22:04 GMT
Also several old loans coming up for maturity as well ie 40, 69 , 42 and 79 this money will be looking for a new home
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seb8072
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Post by seb8072 on Apr 1, 2018 9:49:52 GMT
With some of the happenings on other platforms I'm losing my appetite for putting more money with the same borrowers. Also very fond of Ablrate but beginning to wonder if I've too much tied up here.
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blender
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Post by blender on Apr 1, 2018 10:28:01 GMT
With some of the happenings on other platforms I'm losing my appetite for putting more money with the same borrowers. Also very fond of Ablrate but beginning to wonder if I've too much tied up here. These are two separate issues - but both relate to platform risk, which too many lenders put second to loan risk. I have followed both Ablrate's development, and the recent Col platform collapse, carefully and am happy that the factors which applied to Col, superficially regulatory, have no relevance to Ablrate whatsoever. In terms of business model, compliance and quality of management, Ablrate is solid, imo. The only problem is really the reliance on too few interconnected borrowers, each of which has too much of the loan book, imo. This can lead to a lack of platform resilience, in the case of difficulties with a major borrower 'family', and an over-dependence on those borrowers. Can Ablrate say 'no more, thanks' to those borrowers? Tbf, Ablrate is probably working hard to diversify the offering, but with the present crop of offers we do not see the results of that, yet. Diversity will always be an issue for a small, specialist, platform. But if you want to go for the higher rate, and higher risk, secured loans, I think it is essential to look for a platform which provides a high level of loan supervision, particularly over the security.
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seb8072
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Post by seb8072 on Apr 1, 2018 10:41:57 GMT
With some of the happenings on other platforms I'm losing my appetite for putting more money with the same borrowers. Also very fond of Ablrate but beginning to wonder if I've too much tied up here. These are two separate issues - but both relate to platform risk, which too many lenders put second to loan risk. I have followed both Ablrate's development, and the recent Col platform collapse, carefully and am happy that the factors which applied to Col, superficially regulatory, have no relevance to Ablrate whatsoever. In terms of business model, compliance and quality of management, Ablrate is solid, imo. The only problem is really the reliance on too few interconnected borrowers, each of which has too much of the loan book, imo. This can lead to a lack of platform resilience, in the case of difficulties with a major borrower 'family', and an over-dependence on those borrowers. Can Ablrate say 'no more, thanks' to those borrowers? Tbf, Ablrate is probably working hard to diversify the offering, but with the present crop of offers we do not see the results of that, yet. Diversity will always be an issue for a small, specialist, platform. But if you want to go for the higher rate, and higher risk, secured loans, I think it is essential to look for a platform which provides a high level of loan supervision, particularly over the security.
What you say makes sense but in your opinion, if it isn't the wrong thread for this, how foreseeable was the COL collapse?
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blender
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Post by blender on Apr 1, 2018 10:56:28 GMT
The Coll collapse was not predictable for lenders. The key questions were being asked by lenders who were receiving assurances which turned out to be inaccurate. I was not a Col lender and so did not know the live platform. I had never considered it and could have been trapped there. This is definitely the wrong thread for discussing the cause, but the superficial cause is now clear and the underlying causes are becoming clear. My view is that there is no relevance to Ablrate whatsoever. Other than the fact that things happen which surprise us - but Ablrate is the most transparent of platforms, imo.
Edit: My comments on transparency are likely to be challenged. There are questions that Ablrate clearly chooses not answer, for whatever reason. At least we know that the questions are not answered, and we can draw conclusions. What we do not get is misleading or weasel-worded answers. Trust is essential.
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ceejay
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Post by ceejay on Apr 1, 2018 15:49:31 GMT
I wonder if ABL have managed to trap themselves in a market which is inherently very limited in size? They seem to looking for strong loans with trustworthy borrowers and good security (all good things) but who are prepared to pay astronomical rates of interest (a problematic combination). But if they were to go for business with lower rates - lets say 7-8% to lenders - it would look unattractive to the established lenders.
To put it another way, where would they go looking for borrowers who will be happy to pay 25% or whatever (taking abl's cut into account)?
Not sure how they get themselves out of this one.
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seb8072
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Post by seb8072 on Apr 1, 2018 16:13:30 GMT
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