benaj
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Post by benaj on Dec 4, 2018 14:10:40 GMT
Just received an email from RS inviting me to invest additional funds at market high rates. Clicked the Invest Now button to find the website is down for maintenance. You couldn't make it up! That reminds me of a time in the 80's when shops had just started "price matching". A friend went into a shop to buy a portable TV for £150 only to find out it had sold out. He then went to another shop selling the same model for £200 and asked if they price matched. The store said yes so he proceeded to tell them the the TV was only £150 in the shop down the road. "Why don't you buy it from there" said the shopkeeper. "Because they are out of stock" said my friend. "Well ours are only £150 when out of stock too" said the shopkeeper. It could be even worse, the friend asked his wife to shop for this fantastic offer for Christmas present, when the wife got there the portable TV was sold out but the store manager told the wife the latest limited edition dvd movie was on sale for £150. The wife did not want to disappoint the husband and bought this limited edition dvd and wrapped it like a present, somehow, someone found out it wasn't the portable TV after Christmas.
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zlb
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Post by zlb on Dec 4, 2018 14:32:32 GMT
I went to the meeting RS invited everyone too back in Sept. I remember them saying they are in control of the borrowers 'flow tap' meaning, they drip feed the borrowers orders onto the platform to keep the market stable and flowing through the day. The fact there are more lenders than borrowers will naturally have people chasing the rates down. Historically they used to upload the majority of the orders at about 6am, you could see the total amount of money in borrowers orders and as a lender work out where to get the potentially highest match on that day. The matching used to all happen at about 12.30/1300 rates spiked and by 13.30 there were no borrowers left and rates used to drop back. Its in RS interest to keep rates as low as possible to keep them as competivie as possible in the lending market. The offset is less people will lend via their platform. Personally I have noticed my loan repayments in the 5yr get processed a lot later in the day than repayments in the rolling. Rolling usually by 9am. 5Yr between 10-11.30am. Is this on purpose or maybe due to the size of the loan book considering how they have restructured the rolling market  I also use the manual lend function, never at market rate, last night I was getting rolling money matched 3.9% (2K worth). which was 50% more than the 2.7% getting matched during the day !!! I've been thinking of using RS as they've sent me an incentive to loan having registered once but not invested, which doesn't seem to equate with their having more lenders than borrowers. Wondering why they would need more investors.
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ashtondav
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Post by ashtondav on Dec 4, 2018 15:07:41 GMT
End of month man, me.
I let repayments go on the market at my chosen 5 year rates (6.3% - 6.6%). Anything not lent by the last day of the month goes to Lending Works at 6.5%. £3,900 waved goodbye 4 days ago.
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Post by propman on Dec 4, 2018 15:15:54 GMT
However now showing £200k of borrowers looking for funds that wiould take rates to 4.7%, so obviously needed funds for a large loan.
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benaj
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Post by benaj on Dec 4, 2018 15:29:29 GMT
Not too sure what happened, there was 3.1M (cumulative) queuing on the 1 year market around 13:32 today, now only 1.3M queuing on the year. Did RS matched 1.7 Mil @ 2.9% after 13:32?
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r00lish67
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Post by r00lish67 on Dec 4, 2018 15:49:12 GMT
Not too sure what happened, there was 3.1M (cumulative) queuing on the 1 year market around 13:32 today, now only 1.3M queuing on the year. Did RS matched 1.7 Mil @ 2.9% after 13:32? I quite often see an interesting little bubble of £500k+ brewing on 1-year, but more often than not it shortly seems to disappear. It doesn't typically seem to have been plonked into another market either. Sorry that doesn't help, but you're not the only one.
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rscal
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Post by rscal on Dec 5, 2018 9:59:03 GMT
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Post by GentlemansFamilyFinances on Dec 5, 2018 16:01:03 GMT
You wouldn't think that Martin Lewis needs the referral bonus for Ratesetter.
Yes, you can make £100 or £110 but they'll pocket £50x many times over.
Interestingly, I got an email this weekend saying that rates were higher than normal with the 1 year up above 5%.
I logged in today and the 1 year was at 2.8% - what's that all about?
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benaj
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Post by benaj on Dec 5, 2018 18:36:52 GMT
You wouldn't think that Martin Lewis needs the referral bonus for Ratesetter. Yes, you can make £100 or £110 but they'll pocket £50x many times over. Interestingly, I got an email this weekend saying that rates were higher than normal with the 1 year up above 5%. I logged in today and the 1 year was at 2.8% - what's that all about? Not too sure what happened. Yesterday there was 1.7Mil @ 2.9% queuing around 13:32 and then disappeared / matched. This morning there was about 900k queuing around 2.8% earlier and disappeared / matched after market rate hitting 5.1% in the afternoon. At the time I am writing this, the rate to lend now on 1 year is 3.4%, last match @ 18:26
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Post by propman on Dec 6, 2018 10:11:57 GMT
Standard MR mechanics. Once significant money sucked in at low rate, lures in money at this and slightly lower rate. Borrowing at low rates. Even when this cheap money all lent, this is the majority of the day's lending (often higher rate lending delayed until after the 10PM MR window) and so next MR at same or only slightly higher rate. The next day's MR money is then at this low rate repeating the cycle. It takes several days of lending exceeding the combined MR and new money (ignoring the small amount of "expert" money") before rates recover. december is usuaqlly quiet so expect rates to deteriorate until the Christmas refinancing picks up combined with withdrawals to pay tax in late Jan.
- PM
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Mucho P2P
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Post by Mucho P2P on Dec 11, 2018 19:59:48 GMT
You wouldn't think that Martin Lewis needs the referral bonus for Ratesetter. Yes, you can make £100 or £110 but they'll pocket £50x many times over. Interestingly, I got an email this weekend saying that rates were higher than normal with the 1 year up above 5%. I logged in today and the 1 year was at 2.8% - what's that all about? I have nothing concrete, just speculation, and my gut feeling is that RS have widened their internal spreads between borrowers and lenders to recoup some of their recently published losses. If this is the case, not a good idea as it will not bring in the lenders, and liquidity will be low, and therefore they will make less in the long run as lenders will go elsewhere if rates are too low and not worth the hassle/risk. As with all P2P companies, if the lenders have half a whiff of being taken advantage of, they run elsewhere. I personally rated RS way above the majority of other P2P companies, until my gut told me something might be up!!
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