robski
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Post by robski on Jan 30, 2020 14:34:18 GMT
I think the little red pencil will be removed. As will my money...
But can it be? Is it not actually the case that RS rely on us, the true rate-setters (as distinct from the GR sheep), to fund their lending in abnormal conditions? A lot of the time RS do not need us: there are enough sheep deposits (haha) to cover what is lent. Right now, however, things are a bit abnormal -- I would suggest because RS set the GR too low and there's been a greater exodus than they expected -- and we can step in and plug the gap.
If there was no ability to rate-set and all lenders got was GR, there may come a point where RS cannot fund their lending because there simply aren't enough lenders and no way to change the GR flexibly to meet demand.
100% agree They are relying on the active investors to handle the liquidity issue for them. If we all stopped they could literally run out of available money
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mary
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Post by mary on Jan 30, 2020 14:39:08 GMT
There’s £700k+ on offer on the 1 year now at 5%. (If you still have access).
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Post by erniec on Jan 30, 2020 15:02:27 GMT
Yes, I personally only invest in the 1 Year now. It seems reasonably easy to secure reasonable rates.
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Post by paultw5 on Jan 30, 2020 15:13:39 GMT
There’s £700k+ on offer on the 1 year now at 5%. (If you still have access). What am i missing here, plus is at 3.5/3.6, why would anyone put that into the 1 year at 5%..
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mary
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Post by mary on Jan 30, 2020 15:20:56 GMT
There’s £700k+ on offer on the 1 year now at 5%. (If you still have access). What am i missing here, plus is at 3.5/3.6, why would anyone put that into the 1 year at 5%.. If this offer was placed onto the general market, against current Lender offers, rates would spike to GR +3%. (ie. 6%/6.5%/7%.) Plus it appears there was ~£1m repayment in the 1 year this morning, so there plenty of liquidity available. Edit - All gone, mostly at 5.1%.
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Post by paultw5 on Jan 30, 2020 15:21:02 GMT
Yes, I personally only invest in the 1 Year now. It seems reasonably easy to secure reasonable rates. I think the 1 year has been the way to go for the last few months, but the plus went to 6.5 last night, have overstretched myself a bit now on my p2p investment, but 1.45% in a bank drives me bananas...
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Post by paultw5 on Jan 30, 2020 15:26:03 GMT
What am i missing here, plus is at 3.5/3.6, why would anyone put that into the 1 year at 5%.. If this offer was placed onto the general market, against current Lender offers, rates would spike to GR +3%. (ie. 6%/6.5%/7%.) Plus it appears there was ~£1m repayment in the 1 year this morning, so there plenty of liquidity available. would they not be better taking 350K at 3.5% then 350K at 5.1 in the 1 year, or come back tomorrow for the rest of the 350k
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Post by Deleted on Jan 30, 2020 16:14:36 GMT
"They" is RateSetter. Borrowers don't get to choose the market or the timing. If RS has agreed a loan then it needs to fund it at the time. I don't think there's a direct link between borrower and lender rate. The difference is RS profit and contribution to the provision fund.
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Post by Ace on Jan 30, 2020 16:51:59 GMT
Yes, I personally only invest in the 1 Year now. It seems reasonably easy to secure reasonable rates. I think the 1 year has been the way to go for the last few months, but the plus went to 6.5 last night, have overstretched myself a bit now on my p2p investment, but 1.45% in a bank drives me bananas... Is there some way of discovering the nightly peaks without constant monitoring? (Shhhhh, don't tell r00lish67 that I was asking).
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robski
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Post by robski on Jan 30, 2020 16:58:08 GMT
I think the 1 year has been the way to go for the last few months, but the plus went to 6.5 last night, have overstretched myself a bit now on my p2p investment, but 1.45% in a bank drives me bananas... Is there some way of discovering the nightly peaks without constant monitoring? (Shhhhh, don't tell r00lish67 that I was asking). Only really one way You place £10 bets at all 0.1% markers and see which were left the following morning. You know then roughly where it went to. The upper one could have just been matched or it may have gone into the next 0.1% all depends where your £10 is Its normally pretty easy to tell though just by looking at the que so unless you really need to know (and not sure how much this is really worth knowing) then just looking will normally tell you Edit , IM not sure why I said bets when I meant bids... I suspect my brain was autocorrecting so left it there
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ashtondav
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Post by ashtondav on Feb 2, 2020 15:33:17 GMT
Nice wedge just matched at 5%.
Now make me jealous of you higher rate peops...
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aju
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Post by aju on Feb 2, 2020 16:47:11 GMT
Nice wedge just matched at 5%. Now make me jealous of you higher rate peops... Oh yeah! I'll raise you 5.1% - oops not sure I've got any spare funding Mrs Aju has been on spending session this weekend! . Edit1: Just checked back I got 5.9%, not a big wedge, on 29th Jan though only got £7.98 in waiting at mo though. Looking at the market on Access though looks like it could reach 5.5% or more later today or overnight perhaps!. Edit2: Just watching it for about 5-10 mins using reload button (Ctrl+R) does seem to just be hovering with occasional changes so could be lower say 5.2%.
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robski
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Post by robski on Feb 3, 2020 9:34:15 GMT
Markets didnt do as well as you would normally expect over the weekend i felt
However for watching I suspect a fair amount was being repaid early and going back on auto reinvest, repeatedly chunks would list at GR when there was a significant gap above
This week will be really interesting to my mind. If we see really large sums build up again it could keep rates down for a week or so. If the money coming in isn't that great we may well see a very good month for investors.
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09dolphin
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Post by 09dolphin on Feb 3, 2020 11:16:47 GMT
My concern is that if money isn't flowing into RS where will they find money to finance loans, hence the better rates we can now achieve. Investment does seem to have dropped significantly over the past month or so. Specifically as there was in the order of 13million waiting to be assigned at the start of 20020 whereas it's now less than 6 million and decreasing.
OK I know RS have potentially deep pockets but a loss making company will only be supported for a limited period by an investor or parent company before they decide to cut their losses - or for a specific amount they are prepared to use to support a fledgling company.
I am getting jittery although I'm comfortable for perhaps more couple of months.
I am watching RS bearing in mind the number of P2P companies who are no longer trading and who have led to significant losses for investors.
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robski
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Post by robski on Feb 3, 2020 11:48:44 GMT
I share this, its difficult to know if there are still plenty of funds available to RS.
And also if enough funds for what they want.
I think they are reaping some of what they sowed with the blatant manipulation. Squeezing all the markets into one for lower rates, reaction was to go for Maxx, ok we will drop plus and maxx then....
They have to accept that there is a two way thing here, what rates lenders feel they need in order to lend, vs being able to lend that at rates they can make a margin on. They cant force either and I feel they have been trying to force lenders to accept less so RS can keep writing business.
As I said recently, sometimes less is more
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