bigfoot12
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Post by bigfoot12 on Jun 3, 2019 11:19:51 GMT
Why do lenders think ratesetters might fail? I would have thought even in the worst case scenario of the pf running out of money they would just end up more like Zopa with lenders having to take the defaults (though collectively rather than individually). I don't particularly think it might fail, but would you add more money in the scenario that you describe, or would you try to remove as much as possible (if near par)? Many are using the short bucket like a savings account, presumably they will have a rethink in such circumstances. I imagine RS will have things up their sleeves, it will depend what else is happening the markets and the economy.
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Greenwood2
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Post by Greenwood2 on Jun 3, 2019 11:47:05 GMT
Why do lenders think ratesetters might fail? I would have thought even in the worst case scenario of the pf running out of money they would just end up more like Zopa with lenders having to take the defaults (though collectively rather than individually). I don't particularly think it might fail, but would you add more money in the scenario that you describe, or would you try to remove as much as possible (if near par)? Many are using the short bucket like a savings account, presumably they will have a rethink in such circumstances. I imagine RS will have things up their sleeves, it will depend what else is happening the markets and the economy. Probably not, but it would depend how much rates fell and how it was presented. We are all already effectively paying for defaults by reduced rates due to part of the borrower payments going to support the pf (without the benefit of claiming tax relief) for that we get the rates we set. It would be interesting times, but I think lenders are getting used to that!
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bigfoot12
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Post by bigfoot12 on Jun 3, 2019 12:12:47 GMT
I don't particularly think it might fail, but would you add more money in the scenario that you describe, or would you try to remove as much as possible (if near par)? Many are using the short bucket like a savings account, presumably they will have a rethink in such circumstances. I imagine RS will have things up their sleeves, it will depend what else is happening the markets and the economy. Probably not, but it would depend how much rates fell and how it was presented. We are all already effectively paying for defaults by reduced rates due to part of the borrower payments going to support the pf (without the benefit of claiming tax relief) for that we get the rates we set. It would be interesting times, but I think lenders are getting used to that! I would be pulling out anything I could near par. No way would I add anything new. I would wait to see what happened for a few days or more likely weeks and then perhaps put something back. Obviously depends on what caused the problem. BTW you don't need to claim tax relief with the PF it has the same effect. It is why the pf was invented!
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Greenwood2
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Post by Greenwood2 on Jun 3, 2019 12:39:49 GMT
Probably not, but it would depend how much rates fell and how it was presented. We are all already effectively paying for defaults by reduced rates due to part of the borrower payments going to support the pf (without the benefit of claiming tax relief) for that we get the rates we set. It would be interesting times, but I think lenders are getting used to that! I would be pulling out anything I could near par. No way would I add anything new. I would wait to see what happened for a few days or more likely weeks and then perhaps put something back. Obviously depends on what caused the problem. BTW you don't need to claim tax relief with the PF it has the same effect. It is why the pf was invented!I meant that the pf covers our losses, so we don't crystallise any, but we are effectively paying for the pf by reduced rates which might be quite considerable (For instance on Zopa the headline rate might be 10% and the actual rate 4%). If the pf fails we lose the security of rates and are directly exposed to bad debt, but we would gain on the tax relief. So not necessarily a total disaster.
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aju
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Post by aju on Jun 3, 2019 14:37:50 GMT
That newer link works thanks for your help in that. Sadly I cannot see the telegraph article but that a whole other issue .
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jcb208
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Post by jcb208 on Jun 4, 2019 6:54:27 GMT
Moneything is not generating many new loans so income must be falling,not saying they will fail but I can see them either winding down or changing there business model as these 12-13% loans are turning out to be to high a risk for a lot of lenders
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Post by Ace on Jun 4, 2019 7:39:59 GMT
With so many votes in "others" this poll is less informative than it might be. Could the OP please add some others, particularly any that have been mentioned in the comments please.
I've avoided FS and am already retreating from FC and RS, but it would be good to get some early warning of others that I should reconsider.
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aju
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Post by aju on Jun 4, 2019 8:55:23 GMT
With so many votes in "others" this poll is less informative than it might be. Could the OP please add some others, particularly any that have been mentioned in the comments please. I've avoided FS and am already retreating from FC and RS, but it would be good to get some early warning of others that I should reconsider. I agree with you on the others items, Ace. I too have backed out of the Invest side of Zopa and rebalanced it into RS ISA to a certain level and banked the rest in Marcus for the time being. Probably still a bit over exposed but remaining confident of the 2 biguns at present, probably not wise considering the default levels appearing in our ISA's. As stated elsewhere, last month was our worst at 80% default wipe out of returns and this month has started off down as well. I try not to guage things on a monthly basis but it is getting way more iffy. We are still well up on the deal but will have nearly 4 figure default levels in our Zopa ISA's probably by the end of this month. I need to let last few months rebalancing in Zopa settle before see the real damage. That's also on a 20% Plus to 80% other with 25% sitting in Classic still. RS did raise its PF percentages slightly recently as well.
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Greenwood2
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Post by Greenwood2 on Jun 4, 2019 9:27:32 GMT
With so many votes in "others" this poll is less informative than it might be. Could the OP please add some others, particularly any that have been mentioned in the comments please. I've avoided FS and am already retreating from FC and RS, but it would be good to get some early warning of others that I should reconsider. If you keep up with the platform threads for the platforms you use or are thinking of using, you get a pretty clear impression of the lenders opinions of the platforms and their long term viability, or not. Of course they may be totally wrong!
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Post by Ace on Jun 4, 2019 9:37:13 GMT
Yes, I do try to do that, but keeping up with 26 platforms is pretty consuming. And not helped by the fact that the Recent-T list doesn't show which platform a comment relates to (phase can someone with some relevant programming knowledge have a go at fixing this?).
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Greenwood2
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Post by Greenwood2 on Jun 4, 2019 9:49:23 GMT
Yes, I do try to do that, but keeping up with 26 platforms is pretty consuming. And not helped by the fact that the Recent-T list doesn't show which platform a comment relates to (phase can someone with some relevant programming knowledge have a go at fixing this?). I have fairly drastically reduced the number of platforms I use, partly because of more perceived risk and partly just because it does become too difficult to keep track of them properly.
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bg
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Post by bg on Jun 4, 2019 10:02:53 GMT
With so many votes in "others" this poll is less informative than it might be. Could the OP please add some others, particularly any that have been mentioned in the comments please. I've avoided FS and am already retreating from FC and RS, but it would be good to get some early warning of others that I should reconsider. I wouldn't necessarily take views on this platform as a good early warning indicator....if you check out the platform of the year polls you will see Lendy and Collateral regularly taking the top two positions. In fact I would go so far as to say this forum could be a good reverse indicator!
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 4, 2019 10:40:25 GMT
Yes, I do try to do that, but keeping up with 26 platforms is pretty consuming. And not helped by the fact that the Recent-T list doesn't show which platform a comment relates to (phase can someone with some relevant programming knowledge have a go at fixing this?). I have fairly drastically reduced the number of platforms I use, partly because of more perceived risk and partly just because it does become too difficult to keep track of them properly.You forgot "but mostly because so many platforms blatantly lie, cheat and deceive, all with impunity."
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Greenwood2
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Post by Greenwood2 on Jun 4, 2019 11:00:25 GMT
I have fairly drastically reduced the number of platforms I use, partly because of more perceived risk and partly just because it does become too difficult to keep track of them properly.You forgot "but mostly because so many platforms blatantly lie, cheat and deceive, all with impunity."That was part of the perceived risk bit.
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69m
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Post by 69m on Jun 4, 2019 14:26:13 GMT
Some people reading this too-short list might wrongly construe that these six platforms are to be avoided, because they all currently face a very high risk of collapse.
Why, for example, is Kufflink (sic) named?
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