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Post by westonkevRS on Nov 25, 2015 17:36:01 GMT
11.9% on the 5 year market... nice. They've just completed their 1,000th loan... Little sister is growing
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Post by p2plender on Nov 25, 2015 18:14:43 GMT
Good to hear :-)
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agent69
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Post by agent69 on Nov 25, 2015 18:34:40 GMT
11.9% on the 5 year market... nice. They've just completed their 1,000th loan... Little sister is growing At those sort of rates you would have thought that business was going through the roof
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Post by westonkevRS on Nov 25, 2015 19:13:06 GMT
Actually it's a little psychological and perhaps an idea on how attractive P2P will be in the UK in the future when rates rise.
If you presume the "spread", the difference between bank returns and P2P returns will remain stable, which is more attractive as a P2P offering in each case:
1) Bank safe returns of 1.5% or P2P returns of 6%, like in the UK,
or
2) Bank returns if 5% or P2P returns of 9-10% ?
Although the additional returns are more or less the same, the UK looks much better because of the factor difference....
Kevin.
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bigfoot12
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Post by bigfoot12 on Nov 26, 2015 10:44:55 GMT
Actually it's a little psychological and perhaps an idea on how attractive P2P will be in the UK in the future when rates rise. If you presume the "spread", the difference between bank returns and P2P returns will remain stable, which is more attractive as a P2P offering in each case: 1) Bank safe returns of 1.5% or P2P returns of 6%, like in the UK, or 2) Bank returns if 5% or P2P returns of 9-10% ? Although the additional returns are more or less the same, the UK looks much better because of the factor difference.... Kevin. 1) is better. At the higher rate the early repayment option owned by the borrow is much more valuable, and so I need a bigger spread, and especially so if I think that interest rates might fall (from those new levels). All of the highest rate loans parts I owned through Zopa at the end of 2007 either repaid early or defaulted.
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