benaj
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Post by benaj on Feb 24, 2019 18:25:32 GMT
Looking from another view: invest.ratesetter.com/aboutus/statisticsCurrent loans outstanding: £833 Mil Provision fund cash: £13 Mil (1.5% of outstanding loans) Provision fund buffer (cash + future inflow): £39 Mil (4.6% of outstanding loans) Expected future losses: £33Mil (3.9% of outstanding loans) Average loan term: 27 months Expected lifetime defaults 2016: 3.43% 2017: 3.18% 2018: 4.84% 2019 YTD: 4.84%
I suppose RS need to find a way to cover future losses, as they are expecting a higher default from 2018 onwards.
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dorset
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Post by dorset on Feb 24, 2019 20:40:42 GMT
LFrom a personal perspective I use the RS PF cover as a barometer of p2p health. The sad reality is the even under the full employment, economically benign conditions of the last few years RS has never been able to consistently exceed its minimum targeted PF cover. In that respect it is systemically incompetent in terms of credit checking and debt recovery. However it is one of the few published PF coverage ratios and useful as a guide to p2p health. Personally if it dipped below 110% for any length of time it would signal RED - problems ahead and I would sell up. Currently at 111% to 124% I consider the signal to be AMBER. As as I believe a recession to be on the cards this or next year, I keep a close watch... You are of course assuming that when the PF goes below 110% you will be able to sell. If the PF is below 110% then RS could well pull the plug and haircut all the loans to bring it back to 120%+. IMO you need to sell as soon as the PF goes below 112% or thereabouts. I have an average rate on my loans of 6% but am letting them run out over time. Now down to about £10k from a high of £25k. My trigger point on the PF is 113% at which point I put whats left up for sale (assuming of course that I am not locked in at that point!!)
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Post by Ace on Feb 24, 2019 20:59:20 GMT
How often are Ratesetter's provision fund stats updated?
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benaj
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Post by benaj on Feb 24, 2019 22:15:09 GMT
How often are Ratesetter's provision fund stats updated? Not sure. It seems The performance stats are updated in real time. The RS Provision fund cash is filed on CH. KPI for Provision fund (RATESETTER TRUSTEE SERVICES LIMITED) Coverage Ratio: 2018: 117% 2017: 117%
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Post by gravitykillz on Feb 25, 2019 6:21:05 GMT
Yes. But can we trust that data? Considering the error they make with their other data given to lenders
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