ashtondav
Member of DD Central
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Post by ashtondav on Feb 22, 2019 20:41:03 GMT
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daveb
Member of DD Central
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Post by daveb on Feb 28, 2019 16:49:22 GMT
They certainly went from premium to discount quickly, without much slippage in the NAV
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dorset
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Post by dorset on Feb 28, 2019 18:27:58 GMT
No surprises here. My loan book started coming off the rails in March 2018 and has been downhill since.
A cynic might say that FC seems to have loaded up its loan book with minimum DD prior to the IPO to give an impression of spectacular growth potential. Of course there will never be huge numbers of decent SME loans to underpin the growth. The banks snaffle up the good stuff and leave the rest to the likes of FC. Perhaps manageable however with decent DD and a correct risk rating. Thinking back now to my £s in 24242 A+ £250k and went under after two payments.
Only way to make money out of FC at the moment is IMO short the stock prior to the penny dropping with the share punters.
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adrian77
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Post by adrian77 on Mar 4, 2019 10:39:54 GMT
Agree with every word of the above and would also say there is now much more competition compared to when FC first started which I am sure will cause some players in the p2p world to cut corners. In addition I am concerned the whole p2p industry is going to hit a mega snag as I worry borrowers with poor if not negative assets are flipping from one p2p lender to the next once their original loan is due for renewal and sooner or later the music possibly the Ode to Joy is going to stop...
Short - baby - short!
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bg
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Post by bg on Mar 4, 2019 10:50:29 GMT
Agree with every word of the above and would also say there is now much more competition compared to when FS first started which I am sure will cause some players in the p2p world to cut corners. In addition I am concerned the whole p2p industry is going to hit a mega snag as I worry borrowers with poor if not negative assets are flipping from one p2p lender to the next once their original loan is due for renewal and sooner or later the music possibly the Ode to Joy is going to stop... Short - baby - short! I think you're getting confused again. This is the FC board not FS. FC do unsecured SME loans that are repaid over the life of the loan. Borrowers don't renew FC loans, they are paid off by term (or default) in an amortising fashion. FS in contrast does secured lending that require a bullet repayment at the end of the loan. As far as I'm aware there haven't been a huge amount of extra competition in the unsecured SME loan space. Most of the new entrants of any size are in secured lending. FC pulled out of secured development lending years back.
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