teddy
Posts: 214
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Post by teddy on Jul 9, 2015 18:23:19 GMT
Most of us have worked in organisations and companies where there are staff on large salaries who most of the time don't do much, but occasionally get called upon to do something really stupid in order to justify their existence.
Enter the Ratesetter marketing department.
Anyway, I'm pretty much on draw down for the rest of the year. It will give me an extra emergencies cushion, and will leave me spare capital for the next inevitable cashback offer should I wish to participate. I know the amount that long term I want to have in RS, a figure I'm well above at the moment, so I'm quite able to draw down until the end of December and maintain my required level of monthly return.
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Post by brokenbiscuits on Jul 9, 2015 18:41:29 GMT
How low did it go last time? will we see a 4.9 on the last day so investors can collect their 1% winnings?
5.5 now. Which is 1.4% less than some of last months matches.
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Post by westonkevRS on Jul 9, 2015 20:02:18 GMT
A few weeks ago Halifax were offering loans at 7.9% APR, today they are 3.9%. RS are lending into a tough market, the cashback induced lower rates helps them regain sales. Having started investing at 5.1% in the 5 year I have viewed the rates >6% as exceptional. With Zopa at 5% for 5 years, and a higher fee, a rate of 5.5% at RS is comparable, and I still have a large chunk with Zopa. The savers who are investing are not the market exploiters who post here, they are the Bank refugees escaping from 0.05% (As offered by the Yorkshire Bank). It is nonsensical to claim the risk/reward breaks down below 6%, it is a market failure that the rate on 5 year ever got to 7%. I might not be a fan of the cash back campaign, but all that davee39 says is correct. RateSetter wants to be a prime lender and the safest platform for P2P lenders. For us to achieve this aim the rates that lenders can expect to receive will not be as high as other platforms. This is a risk reward equation that lenders must determine for themselves. Of course other platforms offer higher rates right now, and that is for each individual lender to decide. But with prime borrowers attaining 3.7% best rates on the market, even with some financial trickery it is hard to get close to these rates with high lender returns. RateSetter doesn't want to be a second tier player, we want to be boring lending to prime lenders with borrowers getting a fair if not spectacular return. I'm afraid lenders cannot expect huge returns on the safest platform in the market, IMHO. Those familiar with the rate trends over the years will know that the recent 6% plus lender returns have been an abnormality, and I do not think it the new normal. @ westonkevRSlink.ratesetter.com/8Ls46js www.linkedin.com/profile/view?id=19236219
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Post by westonkevRS on Jul 9, 2015 20:06:37 GMT
Most of us have worked in organisations and companies where there are staff on large salaries who most of the time don't do much, but occasionally get called upon to do something really stupid in order to justify their existence. Enter the Ratesetter marketing department. Each lender is free to make a risk reward decision. If a lender is only willing to lend on the safest P2P platform in the UK with returns well above 6% then they are free to leave or wait. However the above statement is wrong, ignorant of the facts and unfair. Firstly RateSetter is a small organisation with employee numbers approaching 100, and I know each every one and what they deliver. Nobody is "on large salaries who most of the time don't do much". Secondly the cash-back is a Finance initiative, implented on command by Marketing Comms. @ westonkevRS
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jonbvn
Member of DD Central
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Post by jonbvn on Jul 9, 2015 22:46:52 GMT
It is nonsensical to claim the risk/reward breaks down below 6%, it is a market failure that the rate on 5 year ever got to 7%. Before anyone makes such sweeping statements, let us see where the market rates head after the splash-back
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jonbvn
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Post by jonbvn on Jul 9, 2015 22:49:43 GMT
Most of us have worked in organisations and companies where there are staff on large salaries who most of the time don't do much, but occasionally get called upon to do something really stupid in order to justify their existence. Enter the Ratesetter marketing department. Each lender is free to make a risk reward decision. If a lender is only willing to lend on the safest P2P platform in the UK with returns well above 6% then they are free to leave or wait. Says who?
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Post by westonkevRS on Jul 10, 2015 5:33:27 GMT
Each lender is free to make a risk reward decision. If a lender is only willing to lend on the safest P2P platform in the UK with returns well above 6% then they are free to leave or wait. Says who? Says me, IMHO as it said in the previous quote. Also by the web site 4thWay that rated us safest. And on a number of metrics Which! Money scored us highest, although not on safety alone. Why IMHO? Only net profitable platform, highly capitalised by long term investors, largest Provision Fund by 50%, and the most important point - me. Because I'm ace. Kevin.
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oldgrumpy
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Post by oldgrumpy on Jul 10, 2015 5:53:25 GMT
He's had his bananas early today !!
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Post by westonkevRS on Jul 10, 2015 6:02:27 GMT
When I leave, that's your market indicator. Run for the hills, sell sell sell. Actually of the three biggest platforms they are all equally safe in the short to medium term (5-years or until the next recession). They are well capitalised with good lending volumes, and experienced management. There are some other very good platforms that will do well and expand, find their niche. My personal favourites being Assetz and Abundance. I'm not in deep enough with the others, so no inferences intended or opinion had. Other than that I don't really want to get into a " who is the safest" platform debate as well never really know untill the proverbial hits the fan. The point being outside of these players there is clearly more risk. RateSetter isn't interested in being a higher risk higher return platform. If you want to lend on M*******, R******* or B****** - you go for it...... westonkevRS
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Post by Deleted on Jul 10, 2015 7:12:48 GMT
davee, you are right about the 6% barrier being nonsensical, but it is in there somewhere, at what point do you think we have lost the risk/reward element?
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duck
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Post by duck on Jul 10, 2015 7:29:58 GMT
I'm all for the Cash Back incentive since it has made RS less boring! With 3 accounts needing daily 'servicing' I'm actually having to prod the grey cell every morning.
Normal 10 minute procedure .... 1. Put new payment details into spreadsheet 2. Download transactions and check against spreadsheet 3. Amend spreadsheet for any 'early repayments' 4. Put money back on market 5. Withdraw money from one account (for tax reasons) and it appears in my Bank Account without failure the next day.
As a long term investor this is mind-blowingly dull since I am yet to find a 'mistake', the only excitement is when a large Monday payment run is running a bit late! That said I allow myself a smile when a 5 year loan from a few years ago (when rates were lower) 'repays' early.
Compare that with my experiences yesterday with a large 'High Street' provider. Maturing Cash ISA, I decide to withdraw cash (under 3% for locked +3 years anybody?) so having sorted through loads of paperwork I go to the web address as instructed ..... but the web address doesn't exist, try to get through the normal savings website, can't be done, 'please visit a local branch'. So I did and although I had filled out all the paperwork my instructions now had to be entered on a computer .... so sit and wait ..... computer says 'Yes'! So when will I see my cash? Apparently a cheque will be sent out up to 10 days after the maturity date!
Now that's what I call excitement ...........if only RS could emulate this.
[/firmly removes tongue from cheek]
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adrianc
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Post by adrianc on Jul 10, 2015 8:28:52 GMT
1yr and 3yr both neck-and-neck... 3.8%...!
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jonbvn
Member of DD Central
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Post by jonbvn on Jul 10, 2015 10:16:18 GMT
Says me, IMHO as it said in the previous quote. Also by the web site 4thWay that rated us safest. And on a number of metrics Which! Money scored us highest, although not on safety alone. Why IMHO? Only net profitable platform, highly capitalised by long term investors, largest Provision Fund by 50%, and the most important point - me. Because I'm ace. Kevin. IMHO, the jury is still out since RS has not experienced a full economic cycle yet, unlike their largest competitor.
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Post by contangoandcash on Jul 10, 2015 10:35:32 GMT
Before the stuff does hit the fan Kevin, please raise the provision a lot higher than it is.. I know you are constantly adding to it, good, but I'd be far happier with something that looked more capable of dealing with a fat tail event with ease, than a fund that keeps you comfortably ahead of the competition whilst keeping company profits optimised... which is of course in your best interests and fully expected, but I think all these provision funds look under nourished as an investor. We don't want ratesetter to be around just for 5 years til whenever the next 'crisis' hits (could be any time).. 20/30/50 years worth of financial ups and downs need protecting against. I'd love to see it double what it is right now tbh (I can dream)..
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Post by pepperpot on Jul 10, 2015 10:42:36 GMT
The way I see it, Zopa has been through a full economic cycle and has set their provision fund accordingly. If the RS provision fund is looking stronger it would only be a failure of Kev's allowing the wrong borrowers through the door that would cause a major problem. No pressure westonkevRS, but I hope you are indeed Ace.
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