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Post by lotus_eater on Aug 10, 2023 8:29:11 GMT
100% agree with you Ace about the "been mostly positive" remark. The Kuflink secondary market typically has 10-15 loan parts up for sale (if that many). Since all of this stuff started, it's been at over 100 loan parts (got to 151 last week I believe). That's a measurable displeasure I would have thought...... I also think Kuflink buy loan parts themselves from the secondary market to try and keep the numbers down, but I don't have proof. I would have thought 151 is a low figure considering about 20 of them were mine. I have needed to have a rethink of my investment strategy, previously having invested £100 in nearly every loan available, and have been offloading some of my loan investments to get funds to invest £500 in Tier-1 loans only in the future. It would only take about half a dozen investors doing something similar to exceed the 151 loans in the secondary market. And about 20 of them were mine, however I didn't put them on all at once, I trickled them in and I've sold all but 3 now (of course there are about another 25 that can't be sold for whatever reason).
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Post by Ace on Aug 10, 2023 9:22:35 GMT
I don't understand the strategy of selling 20 £100 loans to buy 4 £500 loans. Would it not be better to just wait until £500 cash builds up from natural capital and interest repayments? It would add a little bit of cash drag, but with much higher diversification, at least for a while.
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Post by gramsky on Aug 10, 2023 9:49:43 GMT
I don't understand the strategy of selling 20 £100 loans to buy 4 £500 loans. Would it not be better to just wait until £500 cash builds up from natural capital and interest repayments? It would add a little bit of cash drag, but with much higher diversification, at least for a while. Not if you want to move all your investment into lower risk Tier-1 loans.
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Post by Ace on Aug 10, 2023 9:55:38 GMT
I don't understand the strategy of selling 20 £100 loans to buy 4 £500 loans. Would it not be better to just wait until £500 cash builds up from natural capital and interest repayments? It would add a little bit of cash drag, but with much higher diversification, at least for a while. Not if you want to move all your investment into lower risk Tier-1 loans. Ah, yes. Sorry, my mistake, I missed that point.
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Post by birdie on Aug 10, 2023 10:04:35 GMT
I often wonder why people would buy loans from the secondary market with interest around 6.5% when there are new loans nearer 8.5%, I know I bought a couple when I first started with Kuflink just to test the water, but they keep on selling.
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Post by Ace on Aug 10, 2023 10:11:17 GMT
I often wonder why people would buy loans from the secondary market with interest around 6.5% when there are new loans nearer 8.5%, I know I bought a couple when I first started with Kuflink just to test the water, but they keep on selling. I know a few who have been buying lots of small chunks on the SM recently to up their diversification before the £500 minimum kicks in.
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Post by willsmithgrrrr on Aug 10, 2023 13:53:22 GMT
The problem is FCFS rates now 6.15% 12 months Access, you have gotta question the risk return in 7 or 8 %. It's just not worth risks
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Post by df on Aug 10, 2023 21:45:45 GMT
I completely agree with you on all 3 points. Having to invest more per loan obviously makes the investments more risky through lower diversification. I can't believe his comment that "response to the increased investment minimum has been mostly positive" is anything other than a compete lie. I strongly suspect that it's a response to FCA pressure, which is vaguely hinted at. Complete nonsense throughout. 100% agree with you Ace about the "been mostly positive" remark. The Kuflink secondary market typically has 10-15 loan parts up for sale (if that many). Since all of this stuff started, it's been at over 100 loan parts (got to 151 last week I believe). That's a measurable displeasure I would have thought...... I also think Kuflink buy loan parts themselves from the secondary market to try and keep the numbers down, but I don't have proof. Not in my observation. I'm not constantly watching, but every time I did there were always 50+ and at some points over 100 (at least within the past one or two years). I've never used SM for buying, only for selling loans that are getting closer to their end date. Most are bought imminently, some take a couple of days, but i've seen no change since "this stuff started", sold everything I wanted to sell (incl. sub 7%).
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rscal
Posts: 914
Likes: 503
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Post by rscal on Aug 21, 2023 13:52:13 GMT
When you select to invest now the '£500 minimum' now appears where the 'you need to invest a minimum £2.16' used to be - so it's official (even though emails notifying of this change were not received by many investors. Time to to one thing but not the other...)
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jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,745
Likes: 3,138
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Post by jonno on Aug 21, 2023 14:31:50 GMT
When you select to invest now the '£500 minimum' now appears where the 'you need to invest a minimum £2.16' used to be - so it's official (even though emails notifying of this change were not received by many investors. Time to to one thing but not the other...) Ah well, that's the end of any more of my money going in. I'll just withdraw it in dribs and drabs when it becomes available.
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jcb208
Member of DD Central
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Post by jcb208 on Aug 21, 2023 15:42:42 GMT
Not risking £500 a loan so now withdrawing as well but have been for some time.Im sure their decision of a minimum investment is so all of us who put in smaller amounts go away
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Post by Ace on Aug 21, 2023 17:40:17 GMT
Can anyone with cash in their Previous Year's ISA wallet confirm that they are able to invest sub-£500?
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SteveK
Member of DD Central
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Post by SteveK on Aug 21, 2023 18:17:50 GMT
Can anyone with cash in their Previous Year's ISA wallet confirm that they are able to invest sub-£500? Yes, just invested £200. It displayed ’You may invest a minimum amount of: £4.13’.
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baz657
Member of DD Central
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Post by baz657 on Aug 22, 2023 13:17:39 GMT
Can anyone with cash in their Previous Year's ISA wallet confirm that they are able to invest sub-£500? Me too. Keeps me hanging in there a bit longer.
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rscal
Posts: 914
Likes: 503
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Post by rscal on Aug 24, 2023 16:19:27 GMT
I have just invested a PART (not the whole) of a sub-£500 ISA previous balance and - as the reply by @stevek suggests - you only need to comply with the 'old' (1p per month interest) amount as far as acceptance is concerned. So I may use the SM just for non ISA purchases with the prime market for making selected amounts under £500
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