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Post by GSV3MIaC on Aug 18, 2019 10:37:45 GMT
Not a poll, just a request for ablrate to clarify whether they intend to limit bids (especially on new borrower, small loans, like the recent one which sold out in minutes) for some period. I don't care what the answer is, it will just determine whether I stay or not. Lack of a reply, or failure to stick to what is supposed to happen, will guarantee that I don't.
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blender
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Post by blender on Aug 18, 2019 10:48:56 GMT
I am not keen on bid limits, but agree that there should be an answer to this. It was fairly certain that the loan you mentioned would sell out very quickly, which is why I was there at the appointed time with finger poised. I was surprised by the lack of bid limits, but in this case would not have exceeded the expected £3k bid limit.
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ptr120
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Post by ptr120 on Aug 18, 2019 11:52:22 GMT
I am in favour of bid limits for small loans from new borrowers such as this. It enables new borrowers to get a foot in the door without having to buy at a premium on the SM.With a broader lender base, the platform will be able to support more loans. Bit limits would also discourage flippers, although you can debate if that would be a good or a bad thing.
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Post by GSV3MIaC on Aug 18, 2019 12:49:47 GMT
I am not keen on bid limits, but agree that there should be an answer to this. It was fairly certain that the loan you mentioned would sell out very quickly, which is why I was there at the appointed time with finger poised. I was surprised by the lack of bid limits, but in this case would not have exceeded the expected £3k bid limit.
£3k would still have sold out before many people could finish reading the documents, and get to a computer (I was in a wifi-less caravan site at the time). I'd cheerfully have asked ablrate to reserve me a nibble (<£1k, that being all that if sloshing around in my ISA at the moment), but they don't have any 'prebook' facility either. I had assumed there would be at least a couple of hours of opportunity, and (as somone said elsewhere) limits for small loans had previously been 'promised' (or at least 'agreed').
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Post by ladywhitenap on Aug 18, 2019 13:59:54 GMT
Taking a short term view P2P platforms don't care if a few Big Hitters fill the loans quickly or not. They have no need to diversify across a higher number of investors to spread risk in the way that investors like to spread their funds across a number of loans.
To a new borrower, it looks really good to have their requirements met in a matter of minutes all kudos to the platform.
But in the longer term when the BHs become spent out, platforms need the rest of us smaller investors to help out.
Thinking back to the good old days when MT had regular new loans of relatively low value and decent security, they used to set a maximum of 0.5% bids, sometimes lower IIRC, for the first 24 hrs and this seemed to work quite well and this was irrespective of it being a new or established borrower. Easy enough for the BHs to call back 24hrs later and sweep up anything left or just stick to the big loans where there was plenty to go round.
ABL does need to apply some regulation if it is to keep we smaller investors on side. Quite what the algorithm should be I'm not going to be drawn as there is a third group of investors, the underwriters to be kept sweet and we never hear anything about them from the shadows where they live.
LW
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snowmobile
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Post by snowmobile on Aug 19, 2019 7:56:50 GMT
Bid limits are an ever decreasing issue, as confidence in the P2P sector continues to fall. Understandably platforms are more concerned with filling loans and do not want to do anything to alienate their big hitters.
Personally I don't think that Ablrate need to take any further action at this stage. The situation is much better than it used to be, when documents were released at the same time as the loan went live. Now we have 3 or 4 hours to read the documents and that should be more than sufficient.
The loan which launched recently took around 7 minutes to fill. Therefore most people who were online at the launch would have had an opportunity to bid. There will always be some people who can't be online at the launch time, but you can't please everyone.
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nw99
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Post by nw99 on Aug 19, 2019 8:36:46 GMT
Agreed most platforms struggling to fill loans . Ablrate has the best policy.
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squid
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Post by squid on Aug 19, 2019 8:39:45 GMT
What would be so wrong with a bid limit for the first hour?
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Post by ablrate on Aug 19, 2019 9:19:39 GMT
As you know we have the ability to do bid limits and we have done in the past. However, the balance between origination and lender capacity is always a tricky one. We don't want to constrain those trying to deploy larger amounts and we don't want to exclude those who happen to not be online. We are working on something that would allow you to pre-bid, the only issue with this is that if you pre-bid on a set criteria (new borrower, certain percentage etc)... and then you don't like the deal, our policy is not to cancel bids... you have to hold them until you can sell in the SM. If we allow bids to be cancelled during the bid period the model just will not work.
We are looking at it again and creating a policy, so that you will know which loans will have bid limits and which wont. We will also have a few more tools... the new ui will have some more elegant solutions
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Post by GSV3MIaC on Aug 19, 2019 10:31:35 GMT
I can live with "pre-bid and if you don't like it, lump it" .. I can't live with 'must be online between 12:00 and 12:07'.
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lofty
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Post by lofty on Aug 19, 2019 16:36:29 GMT
I can live with "pre-bid and if you don't like it, lump it" .. I can't live with 'must be online between 12:00 and 12:07'. Agreed, I'm not missing Homes Under the Hammer for anyone...
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brianlom1
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Post by brianlom1 on Aug 19, 2019 16:54:42 GMT
As you know we have the ability to do bid limits and we have done in the past. However, the balance between origination and lender capacity is always a tricky one. We don't want to constrain those trying to deploy larger amounts and we don't want to exclude those who happen to not be online. We are working on something that would allow you to pre-bid, the only issue with this is that if you pre-bid on a set criteria (new borrower, certain percentage etc)... and then you don't like the deal, our policy is not to cancel bids... you have to hold them until you can sell in the SM. If we allow bids to be cancelled during the bid period the model just will not work. We are looking at it again and creating a policy, so that you will know which loans will have bid limits and which wont. We will also have a few more tools... the new ui will have some more elegant solutions Would it not be possible to proceed as follows? - issue documents 24 hours in advance
- allow pre-bids during the 24-hour period (subject to sufficient funds being in the account)
- bid limits may or may not apply (depending on the loan)
- if pre-bids result in the loan being over-subscribed, all bidders receive an equal % of what they bid for
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Post by df on Aug 19, 2019 19:26:39 GMT
As you know we have the ability to do bid limits and we have done in the past. However, the balance between origination and lender capacity is always a tricky one. We don't want to constrain those trying to deploy larger amounts and we don't want to exclude those who happen to not be online. We are working on something that would allow you to pre-bid, the only issue with this is that if you pre-bid on a set criteria (new borrower, certain percentage etc)... and then you don't like the deal, our policy is not to cancel bids... you have to hold them until you can sell in the SM. If we allow bids to be cancelled during the bid period the model just will not work. We are looking at it again and creating a policy, so that you will know which loans will have bid limits and which wont. We will also have a few more tools... the new ui will have some more elegant solutions I don't think pre-bid is necessary. It is quite obvious which loans need limit and which don't. Shouldn't be too difficult to work out the limit and time frame for the loans in "bid limits needed" category.
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brianlom1
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Post by brianlom1 on Aug 21, 2019 20:45:41 GMT
Not sure why you would think any loans 'need' bid limits - it's bidders who can't access the website at the appropriate time who require them.
That said, there are plenty of other loans at the moment so unsuccessful bidders should be spoilt for choice.
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boundah
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Post by boundah on Aug 22, 2019 15:25:00 GMT
Glad to see tomorrow's loan #130 has a limit for 6 hours. If that's now the policy for smaller loans I'm all for it.
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