spiral
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Post by spiral on May 23, 2015 18:58:42 GMT
The site says it's the number of matches. Unfortunately my previous request for clarification of what constitutes a match brought less than helpful replies! But matches can mean 2 things depending on which side of the fence you sit. Is 100 lenders of £100 each to 1 borrower 1 match or 100? It matches 1 borrower but matches 100 lender offers. I would prefer to see it as 1 match but 100 looks much more impressive on the site from RS's perspective. Taking the "3000" matches you mentioned earlier, if the loans were for an average of say £5K that would mean £15m lent overnight whereas in reality, it was probably for something like 3000 £50 offers or £150K.
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Post by westonkevRS on May 24, 2015 8:33:32 GMT
I must admit, I find these figures pretty pointless as the seem to relate to the number of offers The site says it's the number of matches. Unfortunately my previous request for clarification of what constitutes a match brought less than helpful replies! A match is one person's money matched in a loan, so one loan could be filled with many matches. It isn't really that useful I suppose but it gives an idea of the natural diversification that occurs.
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Post by westonkevRS on May 24, 2015 8:38:49 GMT
You guys drive me nuts. If I'd said that 98% of Money matched was institutional I would understand the demands for T&Cs, etc. But the majority is true peer, and we've been very clear that it's on equal terms. In fact this article hints at the truth as to why this is the reason we've been slow in the take-up: m.ft.com/cms/s/0/c48aa7fc-ffa8-11e4-bc30-00144feabdc0.html?siteedition=uk" Ratesetter, which handles individual, business and property lending, has so far been the slowest to take on institutional investment. It has only one such investor — P2P Global Investments, a listed fund — which takes on about 5 per cent of its loans.
It may allow more in future, but enabling institutions to take over “would hollow out our business. We are determined to be a household-name brand,” said Rhydian Lewis, chief executive." If you have wider questions on "I" money in the P, then I suggest another thread is raised. I've made very clear our equal stance with no hidden benefits or "tools". Kevin.
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agent69
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Post by agent69 on May 24, 2015 9:02:14 GMT
The site says it's the number of matches. Unfortunately my previous request for clarification of what constitutes a match brought less than helpful replies! A match is one person's money matched in a loan, so one loan could be filled with many matches. It isn't really that useful I suppose but it gives an idea of the natural diversification that occurs. Thanks for that. So a match could be anything from £10 up to ....... (no upper limit). Are there any stats showing historically what then average match was worth?
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jonbvn
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Post by jonbvn on May 24, 2015 9:13:34 GMT
At the very least platforms need to rename what they are. P2P is no longer applicable as institutions are neither peers or persons in relation to the borrowers. There is at best misrepresentation and at worst a downright lie in calling this p2p. I would suggest the sites start calling themselves brokers and stop trying to use the goodwill attached to the title p2p. I think we could just call them banks;)
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Post by westonkevRS on May 24, 2015 16:54:47 GMT
A match is one person's money matched in a loan, so one loan could be filled with many matches. It isn't really that useful I suppose but it gives an idea of the natural diversification that occurs. Thanks for that. So a match could be anything from £10 up to ....... (no upper limit). Are there any stats showing historically what then average match was worth? I don't think there are any on the web site, although I could extract the data easily enough internally (but I'm not sure what use it would be). There's no upper limit. In fact the data would look strange as the monthly money gets repeatedly matched within the same longer term loan. Due to this repeat matching, if you totalled all the money matched on the web site we have "matched" more money than any other P2P company in the UK. @ westonkevRS
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Post by westonkevRS on Jun 6, 2015 9:14:53 GMT
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Post by p2plender on Jun 7, 2015 7:43:16 GMT
So how much do you need to become an 'institutional lender' with RS and access 20% non protected loans?
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Post by westonkevRS on Jun 7, 2015 12:12:38 GMT
So how much do you need to become an 'institutional lender' with RS and access 20% non protected loans? I think this raises a very valid point. I like RS as a platform and would like to invest more. However, I have no interest in paying away a substantial margin for a provision fund which works when I don't need it (for idiosyncratic defaults) but may fail when I do need it (systemic credit stress). I much prefer to "self-insure" through diversification and holding my own substantial credit reserve. Is RS ever likely to consider opening up non-protected whole loans to "retail investors" even if that might only be HNW-type investors? Or is this logistically not worth the resources? As someone that has been a P2P lender from the early days across a number of platforms, I also enjoyed the higher returns achieved (especially with Zopa) when you took your own risk and had some selection over risk grades. Maybe I was a geek, or a risk afficiando or just greedy - but it worked for me. RateSetter is not that platform and is unlikely ever to be. Its offering is to be simple, worry free with a clear return. Not risk free but low risk, and you choose the return you wanted on your money if a borrower was willing to pay (and other lenders don't offer a lower/better rate). It is not current in the plans for RateSetter, which we unapologetically aim to be safe and boring. I'm not going to apologise for having a specific offering and not providing a confusing array of options that people less engaged don't want to have to make or think about. If another platform (new or old) offers the old style no provision/safeguard offering and the ability to lend riskier loans for a larger return then I'll probably lend with that platform. In fact there are European versions of this and business lending platforms in the UK, but personally these are too racy for me or have platform risk that I'm not willing to accept. @ westonkevRS
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Post by westonkevRS on Jun 7, 2015 12:14:48 GMT
So how much do you need to become an 'institutional lender' with RS and access 20% non protected loans? Who knows, we've never set a number on what an "institution" looks like. But I'm sure if you've got, just for example, enough cash to make 5% of our monthly lending for a guaranteed 12 months then we'd be happy to talk.....
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Post by Deleted on Jun 7, 2015 14:44:48 GMT
Just so I don't have to do the work, what is this £1m or £10m??
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Post by p2plender on Jun 7, 2015 15:54:06 GMT
anyone looked at / using marketinvoice btw? It's something I'm thinking about for the racier part of my pot. Not much on this forum about them.
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adrianc
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Post by adrianc on Jun 7, 2015 16:33:27 GMT
Just so I don't have to do the work, what is this £1m or £10m?? Quick google finds the Daily Wail claiming £23m monthly volume on RS last summer - so north of that now. Call it £30m/mo. So 5% for 12mo is £18m... Ah'm ooot.
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bigfoot12
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Post by bigfoot12 on Jun 7, 2015 16:59:55 GMT
Just so I don't have to do the work, what is this £1m or £10m?? Quick google finds the Daily Wail claiming £23m monthly volume on RS last summer - so north of that now. Call it £30m/mo. So 5% for 12mo is £18m... Ah'm ooot. You could probably list a company on Crowd cube and raise the £12m you'd need (you get some interest and repayments in the year) in a few days! It would be great if some of the uplift was a capital gain rather than taxable interest ...
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agent69
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Post by agent69 on Jun 7, 2015 18:08:59 GMT
Just so I don't have to do the work, what is this £1m or £10m?? Quick google finds the Daily Wail claiming £23m monthly volume on RS last summer - so north of that now. Call it £30m/mo. So 5% for 12mo is £18m... Ah'm ooot. Maybe we could pool our funds and make a combined offer!
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