16.7 per cent increase on 2017 return ???

benaj
Member of DD Central

Posts: 4,855

Likes: 1,591

16.7 per cent increase on 2017 return ??? Dec 12, 2018 9:20:34 GMT

Quote

Post by benaj on Dec 12, 2018 9:20:34 GMT

According to p2p Finance news:

"INVESTORS on the Growth Street peer-to-peer lending platform have seen a 16.7 per cent annual boost in returns so far in 2018."

I wonder if this is the case for all GS lenders. Without accounting the bonus to be paid, how could GS deliver increase return for lenders when there is no increase in investor rate?

elliotn
Member of DD Central

Posts: 3,063
Likes: 2,681

16.7 per cent increase on 2017 return ??? Dec 12, 2018 11:59:14 GMT via Tapatalk benaj likes this

Quote

Post by elliotn on Dec 12, 2018 11:59:14 GMT

Dec 12, 2018 9:20:34 GMT benaj said:

According to p2p Finance news:

"INVESTORS on the Growth Street peer-to-peer lending platform have seen a 16.7 per cent annual boost in returns so far in 2018."

I wonder if this is the case for all GS lenders. Without accounting the bonus to be paid, how could GS deliver increase return for lenders when there is no increase in investor rate?

I’ve only just joined but aiui the current increase would be 23% (4.3% to 5.3%).

This increase is predicated on increased origination offsetting previously higher cash drag.

This is theoretical to the extent it assumes being fully reinvested but improved returns should be actual not imagined for being able to reinvest more quickly.

I’ve seen recently quoted IRRs by investors around this increased return.

benaj
Member of DD Central

Posts: 4,855

Likes: 1,591

16.7 per cent increase on 2017 return ??? Dec 12, 2018 12:30:18 GMT elliotn likes this

Quote

Post by benaj on Dec 12, 2018 12:30:18 GMT

Before the removal of priority rate, GS offered 6.2% for priority rate around July 2017. By the time I joined in Dec 2017, the priority rate was already slashed to 5.3% in Dec 2017 and the time to match was 5 days, effective rate would have been 4.42% for me if I lost 60 days interest a year when lending @ 5.3%.

I would have thought those who joined early and lent on higher priority rates would have earned more than 4.3%. I am glad Growth street has reduced the cash drag in 2018