|
|
Post by lotus_eater on Feb 22, 2019 10:02:05 GMT
Morning All,
Just looking at moving some capital to Ablrate so I was wondering what the current consensus is on them? Reading threads here in the Ablrate forum, it looks like they have a pretty decent reputation at the moment, is that fair to say?
What strategies do you use for buying loans on both the primary and secondary? Do many of you go to task on each loan looking at company financials in detail etc? Or do you look for low LTV's and diversify as much as possible? Doesn't seem to be “that” many loans for diversification purposes, so I guess due diligence on each individual loan would need to be high'ish.
Any pointers on things to look out for?
Thanks in advance for any insight.
Cheers,
Mark
|
|
|
|
Post by fatbritabroad on Feb 22, 2019 12:16:28 GMT
For myself I've just built up slowly with fun money and only have less than the interest earned in each borrower (not loan)
I freely admit to not knowing enough about valuing businesses to do anything else tbh.
I just think you don't get 15% interest without it being high risk so am not willing to risk more especially with the concentration of borrowers. Their dealing with defaults and recovery strategies seem good though
|
|
|
|
Post by lotus_eater on Feb 22, 2019 12:21:18 GMT
For myself I've just built up slowly with fun money and only have less than the interest earned in each borrower (not loan) I freely admit to not knowing enough about valuing businesses to do anything else tbh. I just think you don't get 15% interest without it being high risk so am not willing to risk more especially with the concentration of borrowers. Their dealing with defaults and recovery strategies seem good though Thanks, that makes a lot of sense. I'm not great about valuing businesses either so I'll probably end up with a similar strategy.
|
|
nw99
Posts: 340 
Likes: 114
|
Post by nw99 on Feb 22, 2019 14:16:01 GMT
Have been with them from the start and best p2p out there
|
|
|
|
Post by GSV3MIaC on Feb 22, 2019 14:30:29 GMT
They're good enough that i signed up for a nibble at the latest equity raise. Only complaint is that have too few borrowers, with too many loans each. Be aware of the links when investing (some are obvious, others are not)
|
|
|
|
Post by Deleted on Feb 22, 2019 14:45:26 GMT
I believe that the CEO has followed a "be tough as bear's arse" to his borrowers, who he recognizes are the sort of people who have to borrow at the rates he charges because.... (insert issue of your choice here) as a result he has a reputation of getting his money back and that respect has earned him good money. This strategy, however, struggles with scalability and has only just begun to make a profit for his shareholders. This same lack of scalability has kept him to a very limited range of borrowers which itself makes it difficult to lend to (eggs, baskets). Looking forward he has just brought in an ex AC guy who may help him to scale up significantly (see AC strategy over the last 3 years).
This push for scalability is a dangerous change which may come off well, who knows? However, there is a likelihood that either the rates charged or the hardness may be watered down at which point I will reduce my holdings.
|
|
|
|
Post by df on Feb 22, 2019 15:27:46 GMT
Morning All, Just looking at moving some capital to Ablrate so I was wondering what the current consensus is on them? Reading threads here in the Ablrate forum, it looks like they have a pretty decent reputation at the moment, is that fair to say? What strategies do you use for buying loans on both the primary and secondary? Do many of you go to task on each loan looking at company financials in detail etc? Or do you look for low LTV's and diversify as much as possible? Doesn't seem to be “that” many loans for diversification purposes, so I guess due diligence on each individual loan would need to be high'ish. Any pointers on things to look out for? Thanks in advance for any insight. Cheers, Mark Out of high interest self-select platforms I use Abl is the best (Imo). However, as been already pointed out, the loan flow is not great. There are 50 loans available atm, but they are spread across only 23 borrowers, some of which belong to the same group. My Abl portfolio is modest. I built it slowly over 2 years, hardly used SM and tried not to be overexposed to the same borrower. I prefer smaller portfolio with less risk. I don't take much notice of LTV's (this is generally across platforms). I'd suggest when you buy on SM and there is a generous discount, read updates (if available) and relevant threads on this forum before buying.
|
|
|
|
Post by lotus_eater on Feb 22, 2019 16:26:00 GMT
Thanks for the advice everyone. It all makes a lot of sense and has a positive but cautious ring to it which fits in well with my investing style.
I put a few pennies there earlier today so we'll see how it all goes. I think for the foreseeable future I'll just stick with conservative amounts until I get the feel for how it all works.
Mark
|
|
|
|
Post by Ace on Feb 22, 2019 16:59:17 GMT
ABLrate aren't without their faults and problems. As mentioned by others, too few borrowers and too many interrelated loans are the biggest issues. The website could do with some relatively minor tweaks to improve the lender experience. Many good suggestions have been made on this forum, but ABLrate seem to be slow to incorporate them.
My intended strategy is to do as much DD as my limited abilities allow, including reading all related posts on this (and the purple) forum. My intended limit for ABLrate was for a maximum of 4% of my ABLrate pot in any one borrower, but I've found this impossible to stick to given the low number of borrowers.
Having said all of that, ABLrate are easily my favourite p2p platform. I have a personal maximum limit of 20% of my p2p pot in any one platform, and ABLrate have the full 20% (despite my total pot being spread over 24 platforms). At the rates that ABLrate are charging borrowers there are bound to be problem loans, but they do seem to be the absolute best at handling the problems.
Their SM is the best that I've encountered, providing maximum flexibility and liquidity (maximum, though obviously not guaranteed liquidity, this is high rate p2p!). They also prevent trading at a premium to protect the unwary from making potentially loss making trades when necessary.
|
|
|
|
Post by lotus_eater on Feb 22, 2019 18:21:34 GMT
ABLrate aren't without their faults and problems. As mentioned by others, too few borrowers and too many interrelated loans are the biggest issues. The website could do with some relatively minor tweaks to improve the lender experience. Many good suggestions have been made on this forum, but ABLrate seem to be slow to incorporate them. My intended strategy is to do as much DD as my limited abilities allow, including reading all related posts on this (and the purple) forum. My intended limit for ABLrate was for a maximum of 4% of my ABLrate pot in any one borrower, but I've found this impossible to stick to given the low number of borrowers. Having said all of that, ABLrate are easily my favourite p2p platform. I have a personal maximum limit of 20% of my p2p pot in any one platform, and ABLrate have the full 20% (despite my total pot being spread over 24 platforms). At the rates that ABLrate are charging borrowers there are bound to be problem loans, but they do seem to be the absolute best at handling the problems. Their SM is the best that I've encountered, providing maximum flexibility and liquidity (maximum, though obviously not guaranteed liquidity, this is high rate p2p!). They also prevent trading at a premium to protect the unwary from making potentially loss making trades when necessary. Thanks Ace, good information. I'll see how it goes as I cautiously start with Ablrate. What is (the purple forum)? I'm not familiar with that one I don't think. PM me if it's name is not allowed to be mentioned on here please.
|
|
|
|
Post by fatbritabroad on Feb 22, 2019 21:45:46 GMT
Ace I didn't even know there were 24 p2p platforms which ones do you use may i ask?
|
|
|
|
Post by Ace on Feb 22, 2019 22:43:41 GMT
Ace I didn't even know there were 24 p2p platforms which ones do you use may i ask? There are far more than that, just take a look at the list of boards on this platform. I've listed the 20 platforms that I was in at the end of last year here. It includes brief comments where I thought they would be useful. All just my personal impression, so please do your own DD. They are not all P2P in its strictest sense. I've added CrowdProperty, Landlord Invest, AxiaFunder Funder and Capital Rise this year. It's probably a bit early to form any meaningful results from these yet. Have fun, but don't risk what you really can't afford to lose!
|
|
|
|
Post by fatbritabroad on Feb 23, 2019 5:15:25 GMT
Thank you ace I'll take a look and yes don't worry I have no need of 24. I have about 20k total in p2p which is about 20 % of my non pension non home wealth so very low. I'm just building very slowly and platform risk is my main concern
|
|
|
|
Post by Deleted on Feb 23, 2019 9:33:34 GMT
"20%, so very low....."
Interesting perception, I maintain my level at between 4 and 5% and consider it a risky high. Different strokes for different folks.
|
|
nw99
Posts: 340
Likes: 114
|
Post by nw99 on Feb 23, 2019 9:58:01 GMT
I used to have 20 platforms now only use Ablrate and Ratesetter
|
|
