mikes1531
Member of DD Central
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Post by mikes1531 on Aug 27, 2014 12:05:58 GMT
Anyone else confident that house and yacht prices are going to stay inflated? Those prices don't have to stay inflated in order for SS to be a good investment. They can deflate as long as they do so at a reasonable rate. With one exception, SS loans are of 6-month terms, so investors should be OK as long as there isn't a quick large drop in asset values. JMHO, of course.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Aug 27, 2014 14:30:22 GMT
I've never seen the term 'opportunity costs' used in the context of debt before. That's really brightened my day. At the risk of bearing the opportunity cost of not trolling, I approve of this beautiful perversity! It was never my intention to pooh-pooh the platform. It just remains a mystery why people who seem to have done very well for themselves are opting for such a high cost of finance. A 12% return against a 100% loss risk can be worthwhile but it means it has to be overwhelmingly unlikely anyone will fail. Every loss wipes out eight successes so if you have fifteen loans and two fail, you lose. If the platform loses a cluster all at the same time, it's done. Anyone else confident that house and yacht prices are going to stay inflated? I hope SS continues to do brilliantly. I think you are missing the point that even when a loan goes down there is still a tangible asset behind it, be it a boat or property that still retains a value. so you also need to take that factor into consideration.
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Post by snowgoose on Sept 1, 2014 19:24:15 GMT
It depends how much money you can afford to lose. I'm not saying you will lose it, but there has to be a reason why rates are so high. And don't forget that if lenders are getting 12% the borrowers will be paying considerably more. One thing to be aware of with SS is that you are actually lending to the company (Lendy Ltd) and not to the ultimate borrowers. If I was on SS I would regard the whole of my investment as a single (limited recourse) exposure to Lendy Ltd and limit it accordingly. Why do you regard it as all one loan to Lendy. Why is it different from other platforms like FC, FK or TC?
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Post by batchoy on Sept 1, 2014 19:33:52 GMT
It depends how much money you can afford to lose. I'm not saying you will lose it, but there has to be a reason why rates are so high. And don't forget that if lenders are getting 12% the borrowers will be paying considerably more. One thing to be aware of with SS is that you are actually lending to the company (Lendy Ltd) and not to the ultimate borrowers. If I was on SS I would regard the whole of my investment as a single (limited recourse) exposure to Lendy Ltd and limit it accordingly. Why do you regard it as all one loan to Lendy. Why is it different from other platforms like FC, FK or TC? You are lending to SS(Lendy Ltd) and not to the borrower whereas with FC, FK, TC and AC you have a contract with the borrower. In the case that SS fails it will be down to how the liquidator/administrator views the assignments of security as to where you are in the queue of creditors, with the others if they go down your contract with the borrower still stands and it will be down to the platform's procedures as to who then takes on the administration of the loans on your behalf.
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Post by trevxe on Apr 19, 2016 17:20:28 GMT
To put an end to this unappetising thread. Saving Stream will be publishing a letter from each loans 3rd party legal firm that represents Lendy's (and therefore the investors) interest. The letter will confirm the security of which the loan is over and the registered legal charge that acts as the security. On a side note, any FD who has access to company accounts (that have investors) could run off with the investors money. The fact that Lendy Ltd is now 2 years old and is going from strength to strength with a solid loan book and promising pipeline should negate the risk of a director running off with investors money. Saving Stream does not have £7m in cash sitting in their account, these funds are used to make loans to borrowers and then returned to investors once the loan has ended. I think that if we didn't return these funds when requested by lenders that you would probably have heard about it by now. Hi, sorry for reviving this old thread, but I'm new to SS and your post touches on a question I had so thought this might make more sense than starting a new one. Where can I find copies of these letters for each of the currently active loans?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,881
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Post by ilmoro on Apr 19, 2016 17:47:52 GMT
Dont remember them being published. Completely different set up now to when this was originally posted. OP was a known troll and departed forums soon after. I would suggest posting your specific question in the Q&A thread.
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Post by Deleted on Apr 19, 2016 18:14:24 GMT
I admit I still find it strange that we have people who seemingly own multi million pound property and yachts and supercars yet they borrow £50,000 or whatever at high rates of interest so presumably banks won't lend to them. Well banks are not lending much to some categories of people. One clear example is the owner of the famour SS superyatch and PBL06, which is a politically exposed person and banks will simply not lend him...
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Post by Deleted on Apr 19, 2016 18:18:30 GMT
With the target for price inflation at 2% and the best ISA on the market set to fall to 1.38% in November, people are desperate to get these superior rates. It's entirely understandable. We do however need to remain sceptical. So far I can't fault SavingStream at all. They seem to vet the borrowers very closely, as reflected in the speed at which new loans are filled. This is encouraging. Nevertheless it does seem odd that someone who already made their millions struggles to get credit us plebs can get at the drop of a hat. If the real reason is they're bankrupt, what makes anyone think they'll pay back these new loans 100% of the time? Even houses are depreciating goods, but yachts I would imagine are more-so, and more prone to undetected problems impacting their value. Not telling anyone not to do it: this is one of the best P2P platforms out there. Just expressing some human doubt. Well, I think you are confusing class of lending. With securiy-backed loans, it is far more important the value of the security than the borrower (and in fact some borrowers are NOT vetted at all... I can guarantee it!). And if you tlook to competitor's similar instuments, FC ones for example, they create a Special Vehicle only for the loan/development and don't even publish anything on the borrower (not even a summary of their latest accounts) as this information is considered irrelevant.
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Liz
Member of DD Central
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Post by Liz on Apr 19, 2016 18:47:54 GMT
I don't think badger will respond to you  |
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Apr 19, 2016 19:04:16 GMT
He bl**dy cr*ps in my garden nearly every night!! No more digital trolling; more organic!!   |
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nush
Member of DD Central
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Post by nush on Apr 19, 2016 19:13:29 GMT
oh b__ger, i was half way down page 1 before i read the date.
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Post by earthbound on Apr 19, 2016 19:45:12 GMT
Me too, fortunately i realized that the TB was not sett to make a reply and after burrowing a little deeper, i managed to claw myself away from this thread... sorry.
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Post by trevxe on Apr 19, 2016 20:06:13 GMT
Dont remember them being published. Completely different set up now to when this was originally posted. OP was a known troll and departed forums soon after. I would suggest posting your specific question in the Q&A thread. Will do, thanks.
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jonah
Member of DD Central
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Post by jonah on Apr 19, 2016 21:06:41 GMT
Why does this thread have an anchor icon?
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Post by earthbound on Apr 19, 2016 21:17:16 GMT
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