r00lish67
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Post by r00lish67 on Dec 2, 2019 10:58:59 GMT
I think I may have mentioned it somewhere last month, but I note from the recently updated RS statistics that their loans under management has dropped a fair amount this month.
Recent trend:
May 2019: £854m
Jun: £874m
Jul: £888m
Aug: £891m
Sep: £890m
Oct: £888m
Nov: £881m
I suspect this is part of the driver as to why we're seeing such unsatisfactory investor rates. Also, speculation, but I wonder if it hints at some of the ongoing cut-throat competition to secure and retain borrowers? Perhaps also this is symptomatic of the economic/political uncertainty in the UK at present.
Does anyone have data going further back out of interest? Have we seen such cyclical drops before? My concern is that this trend might be far more damaging to RS than investor unhappiness. We might like to think that we're their lifeblood, but the borrower is really.
Interesting also in light of the Times' Zopa article..
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jlend
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Post by jlend on Dec 2, 2019 11:06:19 GMT
Jumps up and down are going to be more frequent with RS given the amount of property loans written recently IMHO.
We see large fluctuations in the amount of loans written month on month on many of the property P2P sites.
I expect we will need to wait 6 to 12 months to see how the effect of the new rates, general economy pan out.
Given there is a slow period over part of Dec and Jan typically I would be surprised to see volumes going up in the near future.
Am reinvesting in the 1 and 5 year markets at the moment.
The only money I have in the new Max was picked up at 5.5%.
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robski
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Post by robski on Dec 2, 2019 12:28:36 GMT
I see the borrowers and the lenders as equally both the lifeblood of RS to be honest
Their model fails without either of the parties.
At the end of the day they are simply what P2P was all about, an intermediary, sitting in the middle providing the opportunity for lenders and borrowers to get a better deal.
They would do well to remember this
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rscal
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Post by rscal on Dec 2, 2019 17:53:39 GMT
Wow 1 year above max today! (Wot not to like?)
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ashtondav
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Post by ashtondav on Dec 2, 2019 18:39:41 GMT
Probably going for higher quality smaller volume borrowers who attract lower rates - hence the cr*p thats available for lenders on Max. And it's not even Max, as it was "maxxed" by 1 year today. What a shower!
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jlend
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Post by jlend on Dec 2, 2019 20:42:44 GMT
Wow 1 year above max today! (Wot not to like?) One year is only now funding property loans By their very nature these tend to be much larger on average than personal loans. Hence you will see some big variations in the rates matched on the 1 year market from time to time.
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sl75
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Post by sl75 on Dec 3, 2019 11:02:12 GMT
Wow 1 year above max today! ( Wot not to like?) I don't like being excluded from that market.... or was that too obvious?
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robski
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Post by robski on Dec 3, 2019 11:24:21 GMT
To be honest I find the fact that RS are still putting those loans into 1 year and not diverting them elsewhere as deeply concerning.
They are clearly not paying enough attention whilst trying to reduce rates.
It smacks of badly managed to me now, and hence I continue the drawdown
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aju
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Post by aju on Dec 3, 2019 16:23:13 GMT
Looking at International P2P Lending Volumes November 2019 created by wiseclerk recently It's interesting that RS rates are so much both reduced compared to last years entries 2019 Nov 2019 previous month -17% and last years month -21% (Volume was 62,8M euros). 2018 Nov 2018 previous month -3% and last years month 23% (volume was 76,1M euros) That's quite a leap and I wonder if it's something to do with the recent rate changes at RS perhaps. |
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