benaj
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Post by benaj on Mar 15, 2019 14:57:46 GMT
For those who would be interested to see how much I paid for MRA fees in the past, here's are some samples back in Dec 17 | Description | Paid in | Paid Out | | Loan a to aaa1 sold via Rapid Return | 9.00915255 | 0 | | Loan a to aaa2 sold via Rapid Return | 8.99880414 | 0 | | Interest credits paid for RR request | 0 | 0.56770484 | | Rapidreturn Selling Fee | 0 | 0.18007957
| | Loan b to bbb sold via Rapid Return | 8.81868902 | 0
| | Rapidreturn Selling Fee | 0 | 0.08818689 | | Loan c to ccc sold via Rapid Return | 36.00556501 | 0 | | Interest credits paid for RR request | 0 | 1.70311469 | | Rapidreturn Selling Fee | 0 | 0.36005565 |
Interest credits paid is the MRA fee on the monthly statement. Zopa seems to add up the MRA fee if the loan part is sold to multiple parties. As you can see MRA fees are varied depending on the loan parts sold. The 0.3% average MRA fees I paid for selling 86% worth of all time deposit is much lower than individual fee showing on the examples above. Loan C MRA fee is 4.9%, Loan B is 0 and Loan A MRA fee is 3.15% |
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mary
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Post by mary on Apr 3, 2019 13:12:39 GMT
Seems not! Taken from P2PGI investment trust monthly report... “ The legacy Zopa portfolio continues to deliver poor performance with a year to date unlevered return of 1.7 per cent (gross yield less bad debts and servicing) and after deducting debt costs, generated a negative contribution to the NAV return,” the investment managers said.
As a consequence, P2PGI has reduced its exposure to Zopa by 50% to £46m, over the last 12 months.
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Post by Deleted on Apr 3, 2019 13:44:37 GMT
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zlb
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Post by zlb on Apr 3, 2019 20:16:11 GMT
Helpful to know... But what does it mean by "legacy"...did p2pGI take over a collection of investments? Would this include any recovery from the default sale recently?
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Post by davee39 on Apr 3, 2019 20:42:19 GMT
P2PGI are moving out of P2P loans, legacy refers to the portfolio they are getting rid of. These are loans originally financed by institutions and later repacked and sold on, the loans are not connected with the recent default sale. Funding Circle loans have similarly flopped when sold into investment trusts.
The estimated return on Zopa loans includes an allowance for default recoveries, so the actual immediate cash return will be lower than advertised.
As a continuing investment product I award Zopa Zero Stars. The reward is far too low compared with the risk. ( I am going with 2.25% fixed bonds over 2 years as as a safer option pending the next recession).
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Post by Deleted on Apr 3, 2019 21:19:07 GMT
As a continuing investment product I award Zopa Zero Stars. The reward is far too low compared with the risk. ( I am going with 2.25% fixed bonds over 2 years as as a safer option pending the next recession). I am selling my Zopa holding in favour of a mix of RateSetter and instant access account as discussed at p2pindependentforum.com/thread/14535/switching-zopa-ratesetter-bank
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zlb
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Post by zlb on Apr 5, 2019 17:06:35 GMT
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aju
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Post by aju on Apr 5, 2019 18:48:28 GMT
Yeah its an interesting angle as when i read it I thought to myself how will that work having loans of <£10 for me the diversification was always about being able to say to zopa that I wanted to lend 10,000 and have £10 loans rather than the £100 ones you would currently get for that size of loan. In the article it suggests
The thing is if I lend £10000 that could mean I could get >3300 loans or even worse 10000 loans of £1. I get why they have framed it this way as it means essentially 0.33% and 0.1% diversification. I'm also guessing that there will be a starting limit of minimum loan of £10. That said I get loads of loans that are smaller than £10 now. They also allude to the fact that this will increase the overhead of loan numbers and will have to support up to 300M of the new smaller loans. That's going to hit the processing times quite considerably I feel on an already overloaded system zopa has been promising to improve for over 2 years now and not really got there yet. I guess time will tell lets hopw they test it more thoroughly than recent experience suggests.
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Post by propman on Apr 8, 2019 15:57:40 GMT
Presumably smaller micro-loans is aimed at smaller investors. Personally i believe that loans odf >0.2% create significantly more variation in return than the underlying book. If the book changes over time then the diversification needed to be over the period the loanbook was of a particular type rather than the whole portfolio. Plus is particularly problematic as returns are dependent on D & E performing but these are only 15% of the portfolio, so even with £1 loans, for D&Es to be <0.2% requires >£3k of Plus lending that is likely to be a minority of retail lenders.
- PM
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