Post by RateSetter on Mar 21, 2019 17:51:30 GMT
Good afternoon everyone.
We understand how important accurate and accessible data is, and note that data is a topic that is often discussed on this forum. We therefore wanted to flag that, after careful consideration, we are moving to monthly updates of performance data and Provision Fund data. We have explained this in full in a RateSetter Notice which can be found by logging into your account, and is copied below for reference.
Thank you.
Move to monthly data updates
RateSetter has always been a market leader in publishing detailed data about loan performance, risk and return and the Provision Fund on our website.
Today, we have refreshed our website including our statistics page. As part of this we are moving to monthly updates of performance data and Provision Fund data, which ensures accurate data will continue to be delivered in an easy to access and understandable format.
Interest and Capital Coverage Ratios
As is standard practice in the lending industry, RateSetter re-evaluates the expected future losses of the loan portfolio once a quarter (for clarity we would add that we monitor and manage the portfolio on a daily basis). In this evaluation we undertake a comprehensive review of the performance and assumptions that underpin the Interest and Capital Coverage Ratios, namely expected future losses, expected future Provision Fund inflows and future investor interest.
Meanwhile, the Coverage Ratios have historically been displayed in real-time.
This discrepancy means that the Coverage Ratios are precisely accurate once per quarter, but gradually decline in accuracy and may understate or overstate the actual position until the next update is published.
The average outstanding term of loans in the RateSetter portfolio is 21 months, so the day-to-day fluctuations in losses and the level of Provision Fund resources do not actually change the longer-term picture of the expected losses for the portfolio as it matures – in practice, loan portfolio performance plays out over months rather than hours and days.
To address this discrepancy, from today, we are moving to monthly updates of Provision Fund data. We will supplement the comprehensive quarterly evaluations with monthly updates to reflect the latest balances. The Coverage Ratios will be updated monthly, with updates occurring in the last week of each month.
Loan book
As part of this update, we are withdrawing our downloadable loan book from the members' area. As the number of loans written on our platform has increased over time – and now exceeds 650,000 – the number of investors downloading the loan book has dwindled to fewer than 0.1% of investors per month.
This is understandable because it is the overall performance of the active loan portfolio that matters to investors and detailed portfolio performance data is available via the members' area and on our public website.
We understand how important accurate and accessible data is, and note that data is a topic that is often discussed on this forum. We therefore wanted to flag that, after careful consideration, we are moving to monthly updates of performance data and Provision Fund data. We have explained this in full in a RateSetter Notice which can be found by logging into your account, and is copied below for reference.
Thank you.
Move to monthly data updates
RateSetter has always been a market leader in publishing detailed data about loan performance, risk and return and the Provision Fund on our website.
Today, we have refreshed our website including our statistics page. As part of this we are moving to monthly updates of performance data and Provision Fund data, which ensures accurate data will continue to be delivered in an easy to access and understandable format.
Interest and Capital Coverage Ratios
As is standard practice in the lending industry, RateSetter re-evaluates the expected future losses of the loan portfolio once a quarter (for clarity we would add that we monitor and manage the portfolio on a daily basis). In this evaluation we undertake a comprehensive review of the performance and assumptions that underpin the Interest and Capital Coverage Ratios, namely expected future losses, expected future Provision Fund inflows and future investor interest.
Meanwhile, the Coverage Ratios have historically been displayed in real-time.
This discrepancy means that the Coverage Ratios are precisely accurate once per quarter, but gradually decline in accuracy and may understate or overstate the actual position until the next update is published.
The average outstanding term of loans in the RateSetter portfolio is 21 months, so the day-to-day fluctuations in losses and the level of Provision Fund resources do not actually change the longer-term picture of the expected losses for the portfolio as it matures – in practice, loan portfolio performance plays out over months rather than hours and days.
To address this discrepancy, from today, we are moving to monthly updates of Provision Fund data. We will supplement the comprehensive quarterly evaluations with monthly updates to reflect the latest balances. The Coverage Ratios will be updated monthly, with updates occurring in the last week of each month.
Loan book
As part of this update, we are withdrawing our downloadable loan book from the members' area. As the number of loans written on our platform has increased over time – and now exceeds 650,000 – the number of investors downloading the loan book has dwindled to fewer than 0.1% of investors per month.
This is understandable because it is the overall performance of the active loan portfolio that matters to investors and detailed portfolio performance data is available via the members' area and on our public website.