Post by paulg on Mar 22, 2015 12:13:00 GMT
But still, does it matter to an SS lender if they are in this particular loan or not?
The provision fund states that “Payments to lenders will be at the discretion of the Directors of Provision Fund Limited” and that “Your capital is at risk and interest payments are not guaranteed if a borrower defaults. Please be aware that in the event of there being default in excess of the published balance of the Provision Fund then there may be insufficient funds to cover all claims made by investors of Lendy Ltd.”
More immediately, if an individual’s investment strategy requires them to maximise investment fluidity (as far as that’s possible within this type of investment), then they may wish to avoid loans where the likelihood of default appears greater, so that they are not locked into it whilst the default is resolved. Clearly this does not apply to those individuals who are still investing in PBL-007 via the SM now, but the SM for this loan is understandably very slow now for those trying to extricate themselves from it.
Personally, if I had been aware of certain information which was prominently in the public domain within a few days of this loan going live, (I don’t know when it was drawn down), I would not have invested in it. But the responsibility for assessing the risks associated with each investment opportunity – as related to my investment strategy – lies with me, and the lesson I have learned from this is that I must read between the lines of the “Bridging loan particulars” and “Valuations” more carefully.