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Post by ruralres66 on Oct 17, 2019 13:24:07 GMT
I cannot make any sense of what is going on!
Place a reasonable sum on old 1 year yesterday to test system.
Although 'nothing showing' in terms of borrower queuing, or to encourage me on 'market data", it's just gone on 13 contracts at 5.3%............
Any explanations would be more than welcome!
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Post by Deleted on Oct 17, 2019 13:35:55 GMT
I cannot make any sense of what is going on!
Place a reasonable sum on old 1 year yesterday to test system.
Although 'nothing showing' in terms of borrower queuing, or to encourage me on 'market data", it's just gone on 13 contracts at 5.3%............
Any explanations would be more than welcome!
A significant loan was placed on the 1 year market this morning. I think all offers up to 5.3% were used up, as well as some 5.4%. I'm not sure I fully understand why RS places any money on the 1 or 5 year markets when the new markets have lower rates - possibly so that some of us don't withdraw all our money as it's repaid?
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Post by ruralres66 on Oct 17, 2019 13:52:12 GMT
Possibly, but are RS that clever? - forward thinking? , especially when the 1 and 5 year are allegedly in wind down mode!? That notwithstanding, I am encouraged to stay a while....... won't touch the new products though!
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pomma
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Post by pomma on Oct 17, 2019 15:01:51 GMT
I cannot make any sense of what is going on!
Place a reasonable sum on old 1 year yesterday to test system.
Although 'nothing showing' in terms of borrower queuing, or to encourage me on 'market data", it's just gone on 13 contracts at 5.3%............
Any explanations would be more than welcome!
A significant loan was placed on the 1 year market this morning. I think all offers up to 5.3% were used up, as well as some 5.4%. I'm not sure I fully understand why RS places any money on the 1 or 5 year markets when the new markets have lower rates - possibly so that some of us don't withdraw all our money as it's repaid? This is what ratesetter told me when I asked the question about how they decide to fund which market..
"The 1 year market will continue to be funded from a separate market, the way you are matched will remain the same. The 3 new products are to compliment the existing markets. There is currently no plans to remove the 1 year market."
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aju
Member of DD Central
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Post by aju on Oct 17, 2019 15:04:15 GMT
Yet!
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benaj
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Post by benaj on Oct 17, 2019 16:01:16 GMT
This is what ratesetter told me when I asked the question about how they decide to fund which market.. "The 1 year market will continue to be funded from a separate market, the way you are matched will remain the same. The 3 new products are to compliment the existing markets. There is currently no plans to remove the 1 year market."
It's been already removed for ME.
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pomma
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Post by pomma on Oct 17, 2019 16:14:49 GMT
This is what ratesetter told me when I asked the question about how they decide to fund which market.. "The 1 year market will continue to be funded from a separate market, the way you are matched will remain the same. The 3 new products are to compliment the existing markets. There is currently no plans to remove the 1 year market."
It's been already removed for ME. It's my main market so when/if that goes then I go too.....
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Post by bernythedolt on Oct 17, 2019 17:02:24 GMT
But was that for a match in the 1yr / 5yr market? From the scant information RS has provided, it seems they have a problem issuing notifications in those two markets only. I manually placed an order in the 1 year yesterday, it was matched this morning and I received the email notification as usual. Strange, because I did exactly the same - three orders matched this morning on the 1 year - but no email notification. Weird. I trust they're treating our funds with a bit more care than our user interface...
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corto
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one-syllabistic
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Post by corto on Oct 17, 2019 17:09:18 GMT
I got the notification, too.
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Post by bernythedolt on Oct 17, 2019 17:28:52 GMT
A significant loan was placed on the 1 year market this morning. I think all offers up to 5.3% were used up, as well as some 5.4%. I'm not sure I fully understand why RS places any money on the 1 or 5 year markets when the new markets have lower rates - possibly so that some of us don't withdraw all our money as it's repaid? This is what ratesetter told me when I asked the question about how they decide to fund which market.. "The 1 year market will continue to be funded from a separate market, the way you are matched will remain the same. […]"
Can anyone explain that Ratesetter quote to a dumbo like me please? Consider a one year loan request. Presumably the borrower cannot influence which market the money comes from? So that decision falls to RS and they alone decide whether to service the 1yr market or the Access/Plus/Max. So what is this about a 'separate' market? Has RS answered pomma 's question of how they decide which market is serviced? What am I missing?
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Post by propman on Oct 18, 2019 9:34:06 GMT
This is what ratesetter told me when I asked the question about how they decide to fund which market.. "The 1 year market will continue to be funded from a separate market, the way you are matched will remain the same. […]"
Can anyone explain that Ratesetter quote to a dumbo like me please? Consider a one year loan request. Presumably the borrower cannot influence which market the money comes from? So that decision falls to RS and they alone decide whether to service the 1yr market or the Access/Plus/Max. So what is this about a 'separate' market? Has RS answered pomma 's question of how they decide which market is serviced? What am I missing? Its still a Black box how they allocate loans to markets, it is just the same black box. RS started funding some one year loans through rolling some time ago. These are now open to all the 3 new markets. They keep some to be matched one-to-one with 1 year money. I suspect that they could manually tweak the sharing but no info on this. but 1 year market is large property development loans. As a result there are often large loans that use a significant amount of the money on the market. Some few weeks before the introduction of the new markets they dialled down the use of 5-yr market for funding >3 year loans and hence the unlent MR on rolling reduced while unlent MR on 5yr increased.
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Post by bernythedolt on Oct 18, 2019 10:16:34 GMT
Thanks propman. I think my assumption that the borrower cannot influence the market his loan comes from may be incorrect. It's dawned on me that if he chooses a 1 yr non-amortising loan, he will probably (or definitely?) be allocated to the 1yr market, even if cheaper money is on offer from a different market. That might (partially) answer @inv11's intriguing question above, asking why the 1yr queue gets serviced despite a lower rate being available in the new market. Or possibly I misunderstand the model completely - which is more likely!
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jlend
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Post by jlend on Oct 18, 2019 11:10:08 GMT
Thanks propman . I think my assumption that the borrower cannot influence the market his loan comes from may be incorrect. It's dawned on me that if he chooses a 1 yr non-amortising loan, he will probably (or definitely?) be allocated to the 1yr market, even if cheaper money is on offer from a different market. That might (partially) answer @inv11 's intriguing question above, asking why the 1yr queue gets serviced despite a lower rate being available in the new market. Or possibly I misunderstand the model completely - which is more likely! The borrower does not get to choose the market. They are offered a rate by RS and then RS choose the market the loan is put on. The confusion around the 1 year market may be due to lender sell outs. If a lender sells out a loan on the 1 year market, the loan is relent to another lender on the 1 year market. It is not relent on one of the other markets.
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Post by bernythedolt on Oct 18, 2019 13:38:32 GMT
Thanks propman . I think my assumption that the borrower cannot influence the market his loan comes from may be incorrect. It's dawned on me that if he chooses a 1 yr non-amortising loan, he will probably (or definitely?) be allocated to the 1yr market, even if cheaper money is on offer from a different market. That might (partially) answer @inv11 's intriguing question above, asking why the 1yr queue gets serviced despite a lower rate being available in the new market. Or possibly I misunderstand the model completely - which is more likely! The borrower does not get to choose the market. They are offered a rate by RS and then RS choose the market the loan is put on. The confusion around the 1 year market may be due to lender sell outs. If a lender sells out a loan on the 1 year market, the loan is relent to another lender on the 1 year market. It is not relent on one of the other markets. Thanks, jlend, I wasn't aware of that lender sell-out constraint. If I've understood correctly, you're implying ( my highlight) that the amortising / non-amortising loan attribute is assigned by RS, and the borrower has no say. (I've had both types of loan in the past, so wrongly assumed above that borrowers were offered the choice).
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Post by propman on Oct 18, 2019 14:40:11 GMT
AIUI Amortising or not is down to agreement with borrower. However non-amortising loans are offered in the new 3 markets as well as the 1 year, only the 5 year market is only for amortising loans now.
- PM
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