webwiz
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Post by webwiz on Sept 13, 2015 13:52:29 GMT
CS can go broke, just like any other business. But it is most unlikely to go broke because a loan or loans on which we had any opportunity to do DD. So better IMO to do DD on CS as a business rather than try to do DD on individual loans which would be very time consuming and, again IMO, largely ineffective.
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elliotn
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Post by elliotn on Nov 15, 2016 10:01:44 GMT
I think its important to remember what a buy back loan really means. As stated this type of loan happens on other sites too. If person A borrows £10,000 from CS on a loan, the loan becomes an asset owned by CS. What is really happening then is cash shop are applying for a secured loan with MoneyThing using their loan asset as a security. Therefore every transaction can be seen as loan to CS and not the end user, in reality you only have the end users loan as security. In the event of CS going out of business they cant redeem your loan and MoneyThing will try and collect the money, however where is the asset held, if its with the CS the security could almost be worthless as collecting it could be a problem. It could even be difficult to contact the customer. What is worst is as all loans are really loans to CS then your diversified portfolio isn't really diversified at all. Every loan has the same borrower. I'm just going through the backlog of threads as part of my platform DD. My understanding was that with these partnerships MT would be assigned the loan book/underlying security in the case of partner failure. Recourse to the security would be a stored asset for pawn broking (in-house or 3P), property first charge, finance agreement/(tracked) cars for car dealers and so on. The above scenario suggests just a high risk pawn loan book only and not the assets of potentially uncontactable customers. Is that right, I didn't see this contradicted (although I still have a lot of threads to go through just wanted to double check on this as I've already toe dipped in some partner managed loans). Many thanks.
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Post by wonder on Nov 16, 2016 19:37:01 GMT
Hi.
OK, now I'm a little confused.
If MT or CS guarantee to pay lenders their capital an interest at the end of each loan's term, then isn't the best strategy to buy only loans with the very highest interest rates? After all, if MT or CS folds, there will be problems getting paid for many loans, whether they have a high interest rate, or a low one. If the risk is the same for all loans, then I should put any money I'm willing to risk on the MT platform into high-interest loans, no?
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Post by wonder on Nov 16, 2016 20:42:58 GMT
Not all loans on MT are CS loans and the CS ones are all the same rate, 12%. There are a good few partners on MT along with direct individual loans sourced by MT themselves all carrying different risk profiles. You should do some due diligence on each and invest in the ones you are comfortable with. Thanks! However, if I understand correctly (from previous posts on this thread) MT guarantee to pay the capital and interest for all of the loans they fund directly. Thus, why not buy only the highest-interest loans? If, when (and if) they fail, they will all fail together, then why not put however many pennies one feels like risking on the loans that pay the most? Yes, I know I am almost certainly missing something here. I'm just trying to figure out what, with the help of the kind Folk of the Forum.
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Post by wonder on Nov 16, 2016 22:51:33 GMT
I think you should go and read the Moneything home page and read the terms and conditions. Moneything do not guarantee your capital. Yes, the terms and conditions do say that, if a borrower defaults, the lender's investment is at risk. My problem is reconciling that with comments like the following, posted earlier in this thread: "CS buys back all their loans at the end of the loan term, so it doesnt matter whether the original borrower repays or defaults we get repaid. In the event of a default CS will sell the item to recover their cash. Therefore there is no risk of borrower default to lenders. There is a risk of CS failing, in which case MT would manage the loan book/recover money as the security is assigned to them or if MT failed in which case the administrator would manage the loan book. Both scenarios are obviously complicated & therefore more risky. Any loans originated by MT themselves have a similar buyback guarantee" Hence my confusion ...
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 16, 2016 23:01:05 GMT
I think you should go and read the Moneything home page and read the terms and conditions. Moneything do not guarantee your capital. Yes, the terms and conditions do say that, if a borrower defaults, the lender's investment is at risk. My problem is reconciling that with comments like the following, posted earlier in this thread: "CS buys back all their loans at the end of the loan term, so it doesnt matter whether the original borrower repays or defaults we get repaid. In the event of a default CS will sell the item to recover their cash. Therefore there is no risk of borrower default to lenders. There is a risk of CS failing, in which case MT would manage the loan book/recover money as the security is assigned to them or if MT failed in which case the administrator would manage the loan book. Both scenarios are obviously complicated & therefore more risky. Any loans originated by MT themselves have a similar buyback guarantee" Hence my confusion ... At the start MT did offer that guarentee on their own loans, but once the size of the platform and loans increased that no longer became viable. There is another post between me and Ed where that is confirmed which I will locate. p2pindependentforum.com/post/99905/threadThe structure of MT operation has also changed in order to comply with FCA regulation with security now being held by a trust company rather than MT parent company Capital Mortgages. The original post is a year old and has been superseded. I have removed that statement now
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Post by wonder on Nov 16, 2016 23:12:56 GMT
Yes, the terms and conditions do say that, if a borrower defaults, the lender's investment is at risk. My problem is reconciling that with comments like the following, posted earlier in this thread: "CS buys back all their loans at the end of the loan term, so it doesnt matter whether the original borrower repays or defaults we get repaid. In the event of a default CS will sell the item to recover their cash. Therefore there is no risk of borrower default to lenders. There is a risk of CS failing, in which case MT would manage the loan book/recover money as the security is assigned to them or if MT failed in which case the administrator would manage the loan book. Both scenarios are obviously complicated & therefore more risky. Any loans originated by MT themselves have a similar buyback guarantee" Hence my confusion ... At the start MT did offer that guarentee on their own loans, but once the size of the platform and loans increased that no longer became viable. There is another post between me and Ed where that is confirmed which I will locate. p2pindependentforum.com/post/99905/threadThe structure of MT operation has also changed in order to comply with FCA regulation with security now being held by a trust company rather than MT parent company Capital Mortgages. The original post is a year old and has been superseded. I have removed that statement now Ah! That makes sense. Thanks, ilmoro!!!
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ali
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Post by ali on Jul 2, 2017 14:07:58 GMT
MoneyThing, I note that CSP681N-CSP689N (and MTAD606N) are showing as not yet drawn down. I imagine that's just an oversight, but I thought I'd better check.
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Post by MoneyThing on Jul 2, 2017 15:04:24 GMT
MoneyThing , I note that CSP681N-CSP689N (and MTAD606N) are showing as not yet drawn down. I imagine that's just an oversight, but I thought I'd better check. Thanks ali. Yes, simple oversight which I will remedy later today. Regards, Ed.
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ptr120
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Post by ptr120 on Nov 24, 2017 14:13:56 GMT
Hi MoneyThing, in the last update these pawn loans were due to restructure to capital repayment in early November. Is it still the plan that these will restructure?
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Post by MoneyThing on Nov 24, 2017 14:18:53 GMT
Hi MoneyThing , in the last update these pawn loans were due to restructure to capital repayment in early November. Is it still the plan that these will restructure? Afternoon. We are just finalising the restructure now and should have this ready to launch on the platform early next week. Regards, Ed
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ptr120
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Post by ptr120 on Nov 27, 2017 7:17:10 GMT
Hi MoneyThing , in the last update these pawn loans were due to restructure to capital repayment in early November. Is it still the plan that these will restructure? Afternoon. We are just finalising the restructure now and should have this ready to launch on the platform early next week. Regards, Ed Thanks Ed. It would be great to have a 'renew' option so that those already invested can just rollover.
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archie
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Post by archie on Nov 27, 2017 7:27:33 GMT
Afternoon. We are just finalising the restructure now and should have this ready to launch on the platform early next week. Regards, Ed Thanks Ed. It would be great to have a 'renew' option so that those already invested can just rollover. They have got renewal boxes. Most likely the loans will be combined by type (Pawn/Electronics) and re-split with staggered end dates.
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Post by MoneyThing on Nov 27, 2017 8:06:32 GMT
Afternoon. We are just finalising the restructure now and should have this ready to launch on the platform early next week. Regards, Ed Thanks Ed. It would be great to have a 'renew' option so that those already invested can just rollover. Morning. Just checked and all the CSP loans have a renewal option available. Regards, Ed.
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mason
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Post by mason on Nov 30, 2017 15:36:05 GMT
Thanks Ed. It would be great to have a 'renew' option so that those already invested can just rollover. Morning. Just checked and all the CSP loans have a renewal option available. Regards, Ed. How exactly is renewing going to work with regard to the new structure? Right now I see all of my CSP loans have the renewal option ticked, but in the pending loans tab only the two 3 month term loans are showing funds invested for rollover - which seem to correspond to just 2 of the CSP loans in which I have invested. Is this a work in progress?
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