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Post by Ace on Nov 28, 2022 10:42:04 GMT
It seems to be limited to a maximum of 10 different loans. Right now there are 13 loans present, but 3 of them are duplicates. I count 21 different loans offered currently (+ 3 duplicates). And none of them are offered with a discount. Yes, it seemed to open up about a week ago. I wonder if they meant to implement what they said (a max of 10 per lender) but accidentally implemented a total max of 10 different loans, which they've now corrected.
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Greenwood2
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Post by Greenwood2 on Dec 13, 2022 15:07:30 GMT
Lots of loans currently on the SM and a couple with 1% discount.
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Post by davefoz on Jul 1, 2023 11:32:49 GMT
SM is currently flooded with loans with many having little real chance of being sold. Worse still if you put something on the market today it doesn’t show as there appears to be a capacity issue. SOMO really do need to address this issue and possibly limit the number of sales a single person can place on the market.
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IFISAcava
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Post by IFISAcava on Jul 1, 2023 12:13:26 GMT
SM is currently flooded with loans with many having little real chance of being sold. Worse still if you put something on the market today it doesn’t show as there appears to be a capacity issue. SOMO really do need to address this issue and possibly limit the number of sales a single person can place on the market. Just needs to show the full market rather than 30 at a time (and it used to be only 15 at a time). Why limit what someone can sell? That's not a market, that's central control. The inefficiency and unpredictability of the secondary market was one of the reasons I stopped using SOMO.
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aj
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Post by aj on Jul 4, 2023 8:10:43 GMT
We're in an environment of rising interest rates and falling property prices. No one is going to buy loan parts on the SM with a short remaining term, when you can get higher % returns at better LTV on the primary market.
If people are really set on flipping their loans before term, they might have to offer discounts! (And no one is doing so as of this morning).
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Post by davefoz on Jul 5, 2023 16:50:04 GMT
I believe SOMO also have a responsibility to manage the platform better atm. Redemptions are reducing and they’re still bring more and more loans to the platform when it’s clear the platform hasn’t the capacity to fund them. They need to do a quick U turn and cease bringing new loans to the market for a couple of weeks and wait until a good £4/5m has been redeemed, freeing up investor capital to get the platform operating as it has done in the past. They risk damaging the platform hitherto impeccable reputation.
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michaelc
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Post by michaelc on Jul 5, 2023 17:03:27 GMT
I believe SOMO also have a responsibility to manage the platform better atm. Redemptions are reducing and they’re still bring more and more loans to the platform when it’s clear the platform hasn’t the capacity to fund them. They need to do a quick U turn and cease bringing new loans to the market for a couple of weeks and wait until a good £4/5m has been redeemed, freeing up investor capital to get the platform operating as it has done in the past. They risk damaging the platform hitherto impeccable reputation. Presumably easier said than done though as by the time a loan is on offer on the platform it was applied for by the borrower many weeks (or months?) prior. So any changes they make to restrict loans being offered will take quite a good while to have an affect on the current market.
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Greenwood2
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Post by Greenwood2 on Jul 5, 2023 20:02:07 GMT
I believe SOMO also have a responsibility to manage the platform better atm. Redemptions are reducing and they’re still bring more and more loans to the platform when it’s clear the platform hasn’t the capacity to fund them. They need to do a quick U turn and cease bringing new loans to the market for a couple of weeks and wait until a good £4/5m has been redeemed, freeing up investor capital to get the platform operating as it has done in the past. They risk damaging the platform hitherto impeccable reputation. I haven't seen any PM loans fail to get funded. I think SOMO themselves or other institutional lenders pick up the slack if necessary.
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michaelc
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Post by michaelc on Jul 5, 2023 20:32:58 GMT
I believe SOMO also have a responsibility to manage the platform better atm. Redemptions are reducing and they’re still bring more and more loans to the platform when it’s clear the platform hasn’t the capacity to fund them. They need to do a quick U turn and cease bringing new loans to the market for a couple of weeks and wait until a good £4/5m has been redeemed, freeing up investor capital to get the platform operating as it has done in the past. They risk damaging the platform hitherto impeccable reputation. I haven't seen any PM loans fail to get funded. I think SOMO themselves or other institutional lenders pick up the slack if necessary. So there are external money lenders who are chomping at the bit to get hold of loans that have been rejected by the wider Somo community? More to the point, there are indeed quite a lot of loans on the PM relative to historic norms.
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Greenwood2
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Post by Greenwood2 on Jul 6, 2023 9:36:12 GMT
I haven't seen any PM loans fail to get funded. I think SOMO themselves or other institutional lenders pick up the slack if necessary. So there are external money lenders who are chomping at the bit to get hold of loans that have been rejected by the wider Somo community? More to the point, there are indeed quite a lot of loans on the PM relative to historic norms. In the past it was sometimes impossible to get invested loans disappeared in seconds and hardly anything appeared on the SM. I rather like having time to select a loan from a bunch of different ones rather than having to make a pretty instant decision on the one loan available. I don't know if there are other institutional lenders, I know SOMO take a share in loans and it seems they sometimes take more than they intend to keep and put some back on the market later. I have never seen a PM loan 'rejected by lenders', different loans appeal to different people. Some only want 1st charges or low LTVs which are usually lower rates and theoretically safer, some prefer to go for high rates. Some apparently like buying loans near term on the SM hoping for default interest rates, those loans would also be very short term (unless they do default) so perhaps good for liquidity if that's what you want. Anyway not something you need to worry about too much since you have said you don't invest in SOMO any more.
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Post by davefoz on Jul 6, 2023 10:04:20 GMT
I believe SOMO also have a responsibility to manage the platform better atm. Redemptions are reducing and they’re still bring more and more loans to the platform when it’s clear the platform hasn’t the capacity to fund them. They need to do a quick U turn and cease bringing new loans to the market for a couple of weeks and wait until a good £4/5m has been redeemed, freeing up investor capital to get the platform operating as it has done in the past. They risk damaging the platform hitherto impeccable reputation. Presumably easier said than done though as by the time a loan is on offer on the platform it was applied for by the borrower many weeks (or months?) prior. So any changes they make to restrict loans being offered will take quite a good while to have an affect on the current market. First thing they could do is stop bringing loans to market that aren’t live. Would have a short term impact on their cash flow … but worthwhile imho to clear up some of the mess presently created as a result of the plethora of loans available.
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michaelc
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Post by michaelc on Jul 6, 2023 12:11:06 GMT
So there are external money lenders who are chomping at the bit to get hold of loans that have been rejected by the wider Somo community? More to the point, there are indeed quite a lot of loans on the PM relative to historic norms. In the past it was sometimes impossible to get invested loans disappeared in seconds and hardly anything appeared on the SM. I rather like having time to select a loan from a bunch of different ones rather than having to make a pretty instant decision on the one loan available. I don't know if there are other institutional lenders, I know SOMO take a share in loans and it seems they sometimes take more than they intend to keep and put some back on the market later. I have never seen a PM loan 'rejected by lenders', different loans appeal to different people. Some only want 1st charges or low LTVs which are usually lower rates and theoretically safer, some prefer to go for high rates. Some apparently like buying loans near term on the SM hoping for default interest rates, those loans would also be very short term (unless they do default) so perhaps good for liquidity if that's what you want. Anyway not something you need to worry about too much since you have said you don't invest in SOMO any more. That's right I pulled out after seeing so many social money platforms collapse. I do keep a keen eye though as you have noticed as it is my hope that one day either the FCA or the industry itself will do something to increase confidence.
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Greenwood2
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Post by Greenwood2 on Jul 6, 2023 19:42:57 GMT
In the past it was sometimes impossible to get invested loans disappeared in seconds and hardly anything appeared on the SM. I rather like having time to select a loan from a bunch of different ones rather than having to make a pretty instant decision on the one loan available. I don't know if there are other institutional lenders, I know SOMO take a share in loans and it seems they sometimes take more than they intend to keep and put some back on the market later. I have never seen a PM loan 'rejected by lenders', different loans appeal to different people. Some only want 1st charges or low LTVs which are usually lower rates and theoretically safer, some prefer to go for high rates. Some apparently like buying loans near term on the SM hoping for default interest rates, those loans would also be very short term (unless they do default) so perhaps good for liquidity if that's what you want. Anyway not something you need to worry about too much since you have said you don't invest in SOMO any more. That's right I pulled out after seeing so many social money platforms collapse. I do keep a keen eye though as you have noticed as it is my hope that one day either the FCA or the industry itself will do something to increase confidence. I assume you mean P2P platforms, although I've not head any of them describe themselves as 'social money' except SOMO. And of course SOMO is not P2P.
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michaelc
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Post by michaelc on Jul 6, 2023 21:27:56 GMT
That's right I pulled out after seeing so many social money platforms collapse. I do keep a keen eye though as you have noticed as it is my hope that one day either the FCA or the industry itself will do something to increase confidence. I assume you mean P2P platforms, although I've not head any of them describe themselves as 'social money' except SOMO. And of course SOMO is not P2P. No. Social money platforms is a good phrase. To my mind it means any of the platforms that could be listed in the main "P2x sites" section of this forum. They all have in common the fact that a loan is typically divided into small chunks that are then financed by the community - hence social. From a risk perspective, so many of them have crashed and burned but that isn't the only problem. The problem as I see it is that in a sense they are not merely brokers allowing us to make purchases of the underlying assets like with stocks for example. They create the assets, they manage them and if they go down, those assets are likely worth a fraction of what they were worth when they were managed by a functioning platform. They also can't be purchased on any other platform - they only exist within the realm of the platform that created them. I'm using the term "asset" here to mean the loan that you or I buy into. On some sites there is no underlying physical security such as property or jewellery etc. On most there is but in all cases what you or I buy is created by the platform, can only be resold on the same platform (if at all) and can't be bought on any other platform. If the platform goes down, you've nothing left. This is common regardless of whether the platform is true p2p or not. That is why I like the term "social money platform" as it is a term that in my view encompasses both. Finally, I've done quite well out of Somo - all capitol and interest 100% repaid. My arguments are general and perhaps its not fair to Somo to have this debate here. If you wish to continue to debate I suggest we carry on in a more "general" section of the forum.
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Post by Ace on Jul 7, 2023 20:55:22 GMT
I assume you mean P2P platforms, although I've not head any of them describe themselves as 'social money' except SOMO. And of course SOMO is not P2P. No. Social money platforms is a good phrase. To my mind it means any of the platforms that could be listed in the main "P2x sites" section of this forum. They all have in common the fact that a loan is typically divided into small chunks that are then financed by the community - hence social. From a risk perspective, so many of them have crashed and burned but that isn't the only problem. The problem as I see it is that in a sense they are not merely brokers allowing us to make purchases of the underlying assets like with stocks for example. They create the assets, they manage them and if they go down, those assets are likely worth a fraction of what they were worth when they were managed by a functioning platform. They also can't be purchased on any other platform - they only exist within the realm of the platform that created them. I'm using the term "asset" here to mean the loan that you or I buy into. On some sites there is no underlying physical security such as property or jewellery etc. On most there is but in all cases what you or I buy is created by the platform, can only be resold on the same platform (if at all) and can't be bought on any other platform. If the platform goes down, you've nothing left. This is common regardless of whether the platform is true p2p or not. That is why I like the term "social money platform" as it is a term that in my view encompasses both. Finally, I've done quite well out of Somo - all capitol and interest 100% repaid. My arguments are general and perhaps its not fair to Somo to have this debate here. If you wish to continue to debate I suggest we carry on in a more "general" section of the forum. We've had this discussion before in some other thread. In the case of SoMo the underlying asset is a property. SoMo have proven over many hundreds of loans that their asset valuations are sound. The value of that asset won't change if the platform goes down. Yes there may be administration costs that lenders end up paying for due to FCA incompetence, but in Somo's case it should be a fairly simple loanbook runoff as they're simple bridging loans, with income from SoMo's share of the interest to cover costs.
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