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Post by stevepn on Jul 27, 2020 8:56:35 GMT
How lucky to have not used the Access product I was. It comes across as a very poor way to allocate lending with variable rates and terms but only a single capped rate for the nominal privilege of 'Access'. Ratesetter's progress reminds me of BT moving 90% of its 'Standard' customers onto an 'Option' plan in one go thus permanently crimping a small profit in the shot term at the cost of driving all the customers willing to do so to look outside for a different line provider. It's like evolution with these behemoths, they take a wrong turn and [their own] inertia does the rest. Off topic still, but it must be the divergent interests of the older workforce (closer to collecting on pension, so a 'fixed cost') and the new workforce (what's that term... 'lean' .. part of the 'Gig economy'?) which prompts this type of short-termism. And there is information asymmetry in as much as the older workers know where things might be buried and new workers are suckered in with promises of a bright tomorrow (cos, you know, who ever heard of a lying HR manager that wasn't in a box at the time?) Yes Ratesetter have done themselves no favours, there are no new investors putting money in and who is going to invest any money at half the advertised rate? If new money doesn't come in soon HMS Ratesetter will surely sink.
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aju
Member of DD Central
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Likes: 917
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Post by aju on Jul 27, 2020 9:54:29 GMT
How lucky to have not used the Access product I was. It comes across as a very poor way to allocate lending with variable rates and terms but only a single capped rate for the nominal privilege of 'Access'. Ratesetter's progress reminds me of BT moving 90% of its 'Standard' customers onto an 'Option' plan in one go thus permanently crimping a small profit in the shot term at the cost of driving all the customers willing to do so to look outside for a different line provider. It's like evolution with these behemoths, they take a wrong turn and [their own] inertia does the rest. Off topic still, but it must be the divergent interests of the older workforce (closer to collecting on pension, so a 'fixed cost') and the new workforce (what's that term... 'lean' .. part of the 'Gig economy'?) which prompts this type of short-termism. And there is information asymmetry in as much as the older workers know where things might be buried and new workers are suckered in with promises of a bright tomorrow (cos, you know, who ever heard of a lying HR manager that wasn't in a box at the time?) Yes Ratesetter have done themselves no favours, there are no new investors putting money in and who is going to invest any money at half the advertised rate? If new money doesn't come in soon HMS Ratesetter will surely sink. I'm not sure there are no new money coming in. I'm not personally adding new funds to Access but have punted some odd £10's here and there for reasons explained in other threads. Whilst you say there is no new money are you sure there is none. I think there are a few on here that have added funds unless I read the threads wrongly. One could also argue that some of re-lending is new money as such in terms of the interest that the loans accrue, albeit a tenuous link I know. I'm pretty sure also that there are new loans being formed as well. The monthly report will be interesting should there be one at the end of the month. As you can see "I'm always positive, I think!"
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Jul 27, 2020 11:16:30 GMT
I've not become too concerned about whether or not new money is coming in as yet. It's the speed at which existing money is exiting that's more important to me and fortunately RS seems to be doing an admirable job of controlling that on my behalf.
With several £m still in the queues in markets to which I am no longer lending (that'll be all of them, for the avoidance of doubt!) I have no cause to worry. Just as long as that continues for as long as I am in wind down, as I believe (well I would, wouldn't I?) that to be the fairest and most sensible way to access funds, until all has been safely returned.
I feel it's all a matter of timing and hope mine is in tune. Only time will tell.
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aju
Member of DD Central
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Post by aju on Jul 27, 2020 11:45:23 GMT
I've not become too concerned about whether or not new money is coming in as yet. It's the speed at which existing money is exiting that's more important to me and fortunately RS seems to be doing an admirable job of controlling that on my behalf.
With several £m still in the queues in markets to which I am no longer lending (that'll be all of them, for the avoidance of doubt!) I have no cause to worry. Just as long as that continues for as long as I am in wind down, as I believe (well I would, wouldn't I?) that to be the fairest and most sensible way to access funds, until all has been safely returned.
I feel it's all a matter of timing and hope mine is in tune. Only time will tell.
I agree with you comments mostly except I wonder if RS could perhaps switch to an approach similar to Zopa in that on Zopa their queues were effectively the same as RS in that it was FRFO (First requested First Out) but after they realised it was perhaps going to be quite a long wait for many people who were not at the front of the queue they switched to a more sharing approach I guess to keep the punters settled. I was not exactly happy at first as I was pretty much at the front of the queues, I got one product released very quickly before the changes. Then the queues wer implemented and now I get some of my loans released each month - not small amounts but not all . Ok there is another big downside on Zopa in that I'm having to pay a hefty (IMHO) Market rate adjustment for each loan sold (Works out about 4% on top of the Zopa fee of 1%. It's not ideal but we can weather it relative to the increasing defaults that were and still are occurring monthly. That said we are almost out, there are quite a bit of forbearance issues in that many loans are on hold waiting to see individual outcomes after the pandemic subsides etc. Over all the good thing is we had been in P2P with relatively good rates for some time so we have quite a leeway before we are down on the game - Mrs Aju is still happy comfortable but I don't tell every sordid detail ...
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Post by mouldy on Jul 28, 2020 8:49:59 GMT
I went through my Access loan book and calculated when I can expect to receive my money back through the normal course of repayments. The resulting graph is here: imgur.com/xaaKHYx . I expect other loan books will be similar, so this may be of interest to others. I made the following assumptions: * I ignored RYI and any interest * "Current" loans pay back £n/m per month where £n is the capital outstanding and m is the number of months until the end of the contract * "Existing" loans pay back nothing until the end of the contract, then are repaid in full The bottom line is that, if all goes well, one can expect about 35% back after 6 months, and 60% in a year's time. The remaining 40% will be a slow dribble over the following 4 years, unless RYI kicks in. Hey, any chance you can share the calculations you did to create this graph? I am struggling to set the extrapolation up correctly! I managed to figure it out. My % are pretty similar to yours in one account and slightly worse in the other. Good to know!
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Jul 30, 2020 23:14:57 GMT
How lucky to have not used the Access product I was. It comes across as a very poor way to allocate lending with variable rates and terms but only a single capped rate for the nominal privilege of 'Access'. Ratesetter's progress reminds me of BT moving 90% of its 'Standard' customers onto an 'Option' plan in one go thus permanently crimping a small profit in the shot term at the cost of driving all the customers willing to do so to look outside for a different line provider. It's like evolution with these behemoths, they take a wrong turn and [their own] inertia does the rest. Off topic still, but it must be the divergent interests of the older workforce (closer to collecting on pension, so a 'fixed cost') and the new workforce (what's that term... 'lean' .. part of the 'Gig economy'?) which prompts this type of short-termism. And there is information asymmetry in as much as the older workers know where things might be buried and new workers are suckered in with promises of a bright tomorrow (cos, you know, who ever heard of a lying HR manager that wasn't in a box at the time?) Yes Ratesetter have done themselves no favours, there are no new investors putting money in and who is going to invest any money at half the advertised rate? If new money doesn't come in soon HMS Ratesetter will surely sink. it is not by choice they can not have new investors.
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