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Post by saintpeter on Jun 19, 2020 15:29:07 GMT
I'm trying to understand why the RYI are going so slowly in the Access market in comparison to the other markets.
Presumably the liquidity issue is that there are not enough investors to take over the loans so more money has been requested to be released than is in the system (although RS has said this is not the case and most investors have not requested for their money to be released)? Or have most Access investors pushed their reinvestment rates up so the loans that there are very few investors to take over the loans that need to be sold?
Can someone explain the liquidity issue to a layperson.
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puddleduck
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Post by puddleduck on Jun 19, 2020 15:47:17 GMT
More people want to take money out, than is going in.
That's basically it.
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Post by oppsididitagain on Jun 19, 2020 16:24:26 GMT
I'm trying to understand why the RYI are going so slowly in the Access market in comparison to the other markets. Presumably the liquidity issue is that there are not enough investors to take over the loans so more money has been requested to be released than is in the system (although RS has said this is not the case and most investors have not requested for their money to be released)? Or have most Access investors pushed their reinvestment rates up so the loans that there are very few investors to take over the loans that need to be sold?
Can someone explain the liquidity issue to a layperson. correct. Just as Puddleduck says, more people want out than want in. Either not enough people or not enough at the correct price, its the same answer. Not enough people want to buy the loans for sale. so who do you sell your loans too if no one is buying ? Most investors have not requested for their money to be released = This is probably true. Scenario 500 investors want to sell 20Mil of loans and the remaining 2500 investors dont, the above statement is true. It doesn't mention the amount being withdrawn, the statement refers to the amount of people. Likewise, I have only requested my Access money and Im still invested in 1yr and 5yr. So RS statement is true when you look at my scenario. I hope this explains a few things for you.
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benaj
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Post by benaj on Jun 19, 2020 16:28:02 GMT
Access in P2P is not the real model in P2P. When P2P lending was started, they have defined loan terms and no secondary markets.
If you borrow via Credit card, the bank would not ask you to pay back all the debt immediately just because there is a crisis in the background.
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Post by shanghaiscouse on Jun 20, 2020 10:04:14 GMT
It was a badly designed product and wrongly named. You can't call something Access if the assets are all medium and long term and the liabilities are all instant. Many similar bank account are called eg Access30, Access60 to give an idea of when they will get paid. RS should be called Access? A bank would go into its own capital to make good the promise of instant access. A P2P can't do that because the whole point of P2P is that they do not carry a lot of capital.
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ashtondav
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Post by ashtondav on Jun 20, 2020 10:13:37 GMT
The T&C were clearly printed.
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chris1200
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Post by chris1200 on Jun 20, 2020 10:19:58 GMT
It's also worth noting - once again - that your understanding of how 'fast' or 'slow' RS is progressing with RYI requests in each market should not be based on the date of request they have reached. It should be based on the amount of money for each market that RS is progressing through each day.
We don't know these market-by-market figures. But, from this forum at least, it does seem clear (unsurprisingly) that the large majority of RYI requests in the first few days of requests are Access requests. This means that the queue could well be moving at roughly the same pace in the Access market (or even faster), but it just looks slower because the queue is longer (or, in other words, is more 'dense' for the same time period).
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ceejay
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Post by ceejay on Jun 20, 2020 16:36:35 GMT
It's also worth noting - once again - that your understanding of how 'fast' or 'slow' RS is progressing with RYI requests in each market should not be based on the date of request they have reached. It should be based on the amount of money for each market that RS is progressing through each day. We don't know these market-by-market figures. But, from this forum at least, it does seem clear (unsurprisingly) that the large majority of RYI requests in the first few days of requests are Access requests. This means that the queue could well be moving at roughly the same pace in the Access market (or even faster), but it just looks slower because the queue is longer (or, in other words, is more 'dense' for the same time period). Good point. Just looking at the list of loans on this forum, as I write, the loans that have been RYI'ed are 5Y - 19 loans 1Y - 17 loans Access - 23 loans I have no idea whether the requests noted on this forum are representative, or whether the request sizes are the same, or if the reporting is accurate. But on the face of it it does look as though the RYIs are being made at similar rates in all three markets, it's just that there are so many more in the Access market to get through.
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chris1200
Member of DD Central
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Post by chris1200 on Jun 20, 2020 17:04:23 GMT
It's also worth noting - once again - that your understanding of how 'fast' or 'slow' RS is progressing with RYI requests in each market should not be based on the date of request they have reached. It should be based on the amount of money for each market that RS is progressing through each day. We don't know these market-by-market figures. But, from this forum at least, it does seem clear (unsurprisingly) that the large majority of RYI requests in the first few days of requests are Access requests. This means that the queue could well be moving at roughly the same pace in the Access market (or even faster), but it just looks slower because the queue is longer (or, in other words, is more 'dense' for the same time period). Good point. Just looking at the list of loans on this forum, as I write, the loans that have been RYI'ed are 5Y - 19 loans 1Y - 17 loans Access - 23 loans I have no idea whether the requests noted on this forum are representative, or whether the request sizes are the same, or if the reporting is accurate. But on the face of it it does look as though the RYIs are being made at similar rates in all three markets, it's just that there are so many more in the Access market to get through. And it's far from the first time that I (and others) have made this point on here 
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Jun 23, 2020 15:29:58 GMT
I'm trying to understand why the RYI are going so slowly in the Access market in comparison to the other markets. Presumably the liquidity issue is that there are not enough investors to take over the loans so more money has been requested to be released than is in the system (although RS has said this is not the case and most investors have not requested for their money to be released)? Or have most Access investors pushed their reinvestment rates up so the loans that there are very few investors to take over the loans that need to be sold? Can someone explain the liquidity issue to a layperson. Yup in short.. too many sell outs not enough cash going in. if 10 people ask you for 10 quid but you have 20 only you can't give all 10 the money...
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