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Post by bikeman on May 21, 2020 19:56:14 GMT
I notice my defaults have not gone up in last 20 days, is that because all loans are in forebearance? if so, a lot of bad debt is being stored up! The govt is spending so much to help individuals and businesses, I'm not convinced that we will see large scale defaults. Rather the cancelling of DDs last month was a holding strategy for borrowers while they assessed their position. Many think they can take a payment holiday. Many individuals will now be furloughed and will restart payments. Businesses will be using the govt loans and not about to throw in the towel quite as readily as the pessimists here believe. I'm disappointed that most of the P2P platforms have reacted so badly, locking in their investors and not accepting new investment - with interest rates so low, there would be others who see this as an opportunity.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
Likes: 2,313
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Post by keitha on May 24, 2020 9:15:48 GMT
I've got a recovery that will take 126 years... I'm thinking of taking out a FC loan to recover my investment losses - their so fkin useless at recovery I'd probably get away with it. Actually you should take out a loan on behalf of us all, as it seems tome the bigger the loan the more likely you are to get it.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on May 29, 2020 14:21:01 GMT
anyone seeing many defaults still?
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Post by jochietoch on May 30, 2020 5:50:01 GMT
I haven't seen any in the past few weeks, but then I'd expect forbearance to mean that they are not putting non-performing loans into default. Once forbearance ends and it becomes clear who is no longer viable I'd expect defaults to flood in though, and recovery prospects to be low. Those borrowers are currently building up a backlog of forborne liabilities and likely burning through cash at the same time in the hopes to keep their business alive. So I imagine there won't be much left on the balance sheet to liquidate once they do fall over.
What I *am* seeing is a big increase in early repayments. On ~250 loans I've been getting them in daily since mid-May, returning funds faster than the sales process did. I imagine these are borrowers that manage to refinance cheaper with CBILS loans. Once that has worked its way through, I fear the prospect for the remaining funds won't be great.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
Likes: 2,313
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Post by keitha on Jun 3, 2020 19:26:01 GMT
3 defaults ie close to 1% of portfolio ( by number ) ( 1.1% by value ) since 27th May
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