sjg
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Post by sjg on May 16, 2018 16:09:58 GMT
Well I'm one week off my first 6 months with Unbolted. Good to see that once my loans start repaying I will get less interest on any renewals (not). I'm starting to think jumping in the P2P pond 9 months ago wasn't perhaps my best move!!! A few defaults on MT early on (although as a very small fish not a lot in the scheme of things). Collateral as my biggest P2P as a wait and see what happens there. Plus a few SME loans going down the swanny. Still at least its all money I can afford to lose (not that I want to lose any ).
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Post by df on May 16, 2018 16:38:15 GMT
Of course. It is a good place to house my returns from Zopa, RS and whatever comes from Ly, MT and what might come from COL one day. 7% average is not bad for low maintenance headache free investment. Just beware platform apathy Df. I'm sure if COL cut rates a year or so back, when everyone seemed to be so enamoured with them, people would have been ok cos they were seen as so safe and well managed. Every cut to interest rates increases your risk of capital loss if things go wrong, and brings the average p2p marketrate down. Other platforms see and the average across all platforms may slide downward over the years (which by the sounds of it, I think is already happening since "the golden age" a few years back people mention sometimes.) Platform failure in the biggest risk. Diversification is my key strategy, the rate is less important. I have 7% of my p2p in UB, which can be slightly increased without overexposing to one single platform. I did like Col, but didn't go wild with it, so although the collapse is upsetting the effect wasn't devastating for me. It is happening. The average rate across platforms went down within past 12 months - in my portfolio AC, Rebs, FC, LC (from this week), RS, FS, GS, Landbay had some drop in rates. It seems to be a trend and we can't do anything about this, except withdrawing funds and placing them elsewhere.
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ant1
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Post by ant1 on May 16, 2018 17:06:25 GMT
Not the best day to announce this cut in rates when Assetz have made their own announcement.
It will be interesting to see how much future cash is directed to Assetz rather than Unbolted following this, and given the difficulties in investing any reasonable sized funds into Unbolted.
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Post by df on May 16, 2018 17:33:40 GMT
Didn't put me off. Still very good rates for the risk involved. I thought the old rates barely covered the inherent risks of this kind of lending, so no the new rates really are not good for the risk. No more money will be going in to Unbolted. Given the difference between what they allow investors and the considerable charges to borrowers and we carry all the risk, quite bluntly we are being treated as mugs. I see bling loans as less risky investment, if valued correctly.
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dermot
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Post by dermot on May 16, 2018 18:12:08 GMT
I will certainly not be investing cash in the unprotected loans any more.
OK, they have been doing a reasonable job on recovering defaulted loans that are provision funded, but I'm not sure I've seen any *unprotected* loans default and be recovered, so there seems little supporting data to justify cutting rates there.
5.1% on 30day AC seems a far better risk/reward ratio.
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hendragon
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Post by hendragon on May 16, 2018 18:23:03 GMT
Would it be a coincidence that no new loans (unless someone has had a £5) have been made today? I really find myself wondering if there will be a lot of loans made on Friday. Or is that a little too cynical
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Rate drop
May 16, 2018 19:41:29 GMT
via mobile
Post by beeje13 on May 16, 2018 19:41:29 GMT
I still think it's one of the better offerings in p2p, but I've taken this as the point to stop auto-lend and start getting cash back out.
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Post by df on May 16, 2018 19:45:02 GMT
Would it be a coincidence that no new loans (unless someone has had a £5) have been made today? I really find myself wondering if there will be a lot of loans made on Friday. Or is that a little too cynical Could be. I had no allocations and only one tiny return from 2DFDC488D. Very unusual.
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markyg61
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Post by markyg61 on May 16, 2018 21:35:40 GMT
One yesterday and nothing today !
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upland
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Post by upland on May 17, 2018 6:18:12 GMT
I guess that we will just have to see how it pans out for each of us. I quite like UB but like most platforms that I use I limit my exposure to match my view of the risk (it worked with Collateral!). To get any return you need quite high purchase settings in relation to the average loan size. I have always felt that eventually this will be an undoing.
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littonowl
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Post by littonowl on May 17, 2018 8:58:28 GMT
I will certainly not be investing cash in the unprotected loans any more. OK, they have been doing a reasonable job on recovering defaulted loans that are provision funded, but I'm not sure I've seen any *unprotected* loans default and be recovered, so there seems little supporting data to justify cutting rates there. 5.1% on 30day AC seems a far better risk/reward ratio. Yep. Considering the cash drag you have to suffer at Unb, just to maintain your current rate of investment, the real rate of return is even closer tot he new AC rates. And you can sell up immediately/within 30 days over there... Yet another platform wanting investors to fund their business/take all the risks, while they reap the vast majority of any rewards.
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slush
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Here to learn. Please be gentle.
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Post by slush on May 17, 2018 10:48:49 GMT
Would it be a coincidence that no new loans (unless someone has had a £5) have been made today? I really find myself wondering if there will be a lot of loans made on Friday. Or is that a little too cynical Still nothing for me. Sadly, your cynicism was correct.
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nyneil
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Post by nyneil on May 17, 2018 13:55:55 GMT
Would it be a coincidence that no new loans (unless someone has had a £5) have been made today? I really find myself wondering if there will be a lot of loans made on Friday. Or is that a little too cynical Still nothing for me. Sadly, your cynicism was correct. Nothing for 2 days! Very disappointing, Unbolted. It looks like they are just out to make more money for themselves, on the back of their investors.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 17, 2018 15:48:04 GMT
Yes, I just cleared out my account and reset down to 100 / 100 / 25 and will probably reset again to all zeros next week.
I watched and waited to see how UNB would play this game, and yesterday & today's No Loans decided for me, their intentions are clear.
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Post by dan1 on May 17, 2018 21:09:32 GMT
I reluctantly set my auto-lends to £0 and withdraw my cash balance this evening. I'm not convinced the new rates offer sufficient return for the risk and I need time to think this through and quite frankly, a couple of days notice is insufficient. I wanted to put some numbers behind the loss of interest on the Provision Trust loans by analysing the loan tape for completed loans.... [ italics are derived values] Repaid/Renewed LoansLoan amount: £2,778,308.81 Amount repaid to lenders: £2,899,385.80 Interest paid: £121,076.99 Defaulted and Resolved LoansLoan Amount: £196,513.90 Amount Due to Lenders: £218,027.42 Amount Repaid to Lenders: £215,089.69 Interest Loss to Lenders: £2,937.73 Interest due to lenders: £21,513.52Interest loss as % of due: 13.7% Default rate as % of loan amount: 6.6%Repaid/Renewed Loans + Defaulted and Resolved Loans Interest due to lenders: £142,590.51 Interest loss as % of due: 2.1%
In summary, lenders in the Provision Trust have lost 2.1% of interest due and 13.7% of interest due when loans default, and defaults are 6.6% of the loan amount. Returns will be driven by a number of factors: - Cash drag (if I turn off Gold Trust and Unprotected loans I may be looking at significant drag of 10-20% for decent allocations) - Default rate (will inevitably rise in a recession) - Interest loss rate (positive correlation with default rate, I'd expect recovery/auction results to be worse in a recession) - Gold prices - Health of Gold and Provision trusts (do we have any statistics on these?) - Can kicking! (I've got a couple of overdue loans due Oct 2017) As always, please trust me not and DYOR. I'm disappointed to see the investment returns page not showing the new rates effective from tomorrow: unbolted.com/uk/investing/investment-returns/It as also disappointing to see no new loans on the platform since the announcement of the reduction in rates.
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