grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 24, 2015 12:21:01 GMT
Does anyone know the size of the current loanbook, numbers/Value
Also for all the loans on the exchange there seems to be a disproportionally large percentage for sale 25-50% . Did everyone join for the cashback ?
|
|
bjorn
Posts: 102
Likes: 39
|
Post by bjorn on Sept 24, 2015 18:59:32 GMT
Does anyone know the size of the current loanbook, numbers/Value LC provided some figures in June in this post. Maybe there have been another 4-5 loans since then. I'd guess a lot of it will be the in-house bidder/underwriter who appears to be taking 30-50% of new loans. I'd imagine they'd be keen to shift what they have in order to re-cycle their money into new loans. But given the new info we have from LC in their post today on how the SM works, I don't think this really counts against other people wanting to sell.
|
|
grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 24, 2015 23:21:47 GMT
Does anyone know the size of the current loanbook, numbers/Value LC provided some figures in June in this post. Maybe there have been another 4-5 loans since then. I'd guess a lot of it will be the in-house bidder/underwriter who appears to be taking 30-50% of new loans. I'd imagine they'd be keen to shift what they have in order to re-cycle their money into new loans. But given the new info we have from LC in their post today on how the SM works, I don't think this really counts against other people wanting to sell. Once loans go live you can't see the bids but my latest a "male climate sheep" bids = loan value. I think the in house bidder is called "s******r" has £18,500 in that loan at almost lowest rate (Apart from a few idiots bidding lower) Can't be FC refugees. S******r sometimes using Autobid sometimes not, bid values 2-7.5K on the current loan auctions. Based on the number and value of loans so far not sure what LC staff do for a day job.
|
|
|
Post by bonfemme on Sept 25, 2015 10:19:45 GMT
LC provided some figures in June in this post. Maybe there have been another 4-5 loans since then. I'd guess a lot of it will be the in-house bidder/underwriter who appears to be taking 30-50% of new loans. I'd imagine they'd be keen to shift what they have in order to re-cycle their money into new loans. But given the new info we have from LC in their post today on how the SM works, I don't think this really counts against other people wanting to sell. Once loans go live you can't see the bids but my latest a "male climate sheep" bids = loan value. I think the in house bidder is called "s******r" has £18,500 in that loan at almost lowest rate (Apart from a few idiots bidding lower) Can't be FC refugees. S******r sometimes using Autobid sometimes not, bid values 2-7.5K on the current loan auctions. Based on the number and value of loans so far not sure what LC staff do for a day job. Give them a chance. Even FC started with only a handful of loans. I imagine they are spending a good deal of their time promoting the platform to both borrowers and lenders. They also seem to be very responsive to suggestions for fine-tuning the way their website and systems operate.
|
|
grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 25, 2015 10:40:43 GMT
it was not a criticism, just wondering how they are funding themselves .
|
|
|
Post by nanniema on Sept 25, 2015 21:48:54 GMT
As a mere amateur I'm looking for some expert advice/comments on a current loan, vxxxo ixxxxxi.
On the face of it they look a sound company; Creditsafe score of 80, Net assets £730,760, £168,000 profit after Tax for last six months (down pro-rata against last full year - seasonal?), Total outstanding loans of £10350.
However they have a credit rating of B from LC, with 7 days to go there have only been 39 bids totalling £9880 of £30,000, £8000 of which from the usual suspect.
So what am I missing? My bidding finger is getting cramp hovering over the bid button.
Help please
|
|
grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 25, 2015 22:48:58 GMT
As a mere amateur I'm looking for some expert advice/comments on a current loan, vxxxo ixxxxxi. On the face of it they look a sound company; Creditsafe score of 80, Net assets £730,760, £168,000 profit after Tax for last six months (down pro-rata against last full year - seasonal?), Total outstanding loans of £10350. However they have a credit rating of B from LC, with 7 days to go there have only been 39 bids totalling £9880 of £30,000, £8000 of which from the usual suspect. So what am I missing? My bidding finger is getting cramp hovering over the bid button. Help please The 8k i think is the in house underwriter, not a real bidder. Thats why there is about 470k available across 22 loans on the SM . Turnover is down 25% in 2015. Why do they need 30k with 730k shreholder funds, not in fixed assets so where is it. After paying off loans whats left will go nowhere. Regardless of rating does not stackup, thats why no one is interested (maybe autobidderrs who don't look at detail). why rush to bid it won't go away for 7 days.ask questions look at q&a, no answers no bid. Wait and see if it fills.
|
|
|
Post by nanniema on Sept 26, 2015 8:00:59 GMT
Thank you grahamg. I was just going on the old adage "If it looks too good to be true, it almost certainly is" but it is nice to have expert confirmation. I might still have a small punt if the in house bidder does not bring the rates down too far.
|
|
bjorn
Posts: 102
Likes: 39
|
Post by bjorn on Sept 26, 2015 10:24:21 GMT
it was not a criticism, just wondering how they are funding themselves . Remember they're less than a year old! They'll have investors just like any other startup and most startups won't be looking to self-fund for 5 years or so (Facebook took 5 years to turn a profit). Even many of the much bigger p2p platforms aren't profitable and continue to raise funds externally from VCs to grow rather than choose to try to self fund. As an example, Frequently Challenged have recently raised $150m and have said that their target is to do £/$100bn of loan origination in/by (and I know that those distinctions make a massive difference!) 2020. The point is that it's all about growth. p2p is clearly a growing industry and so there's a bit of an arms race at the moment to emerge as a winning platform. Any business that chooses to focus on funding themselves at the expense of growth will likely stand to lose out in the longer term.
|
|
bjorn
Posts: 102
Likes: 39
|
Post by bjorn on Sept 26, 2015 10:46:01 GMT
However they have a credit rating of B from LC, with 7 days to go there have only been 39 bids totalling £9880 of £30,000, £8000 of which from the usual suspect. I think there's a simpler explanation than has been suggested so far which is that most people wait until close to the auction finishing to bid. This loan isn't dissimilar to others in terms of how much has been taken up at this point in the auction process. That's not actually how it's been working. You get the rate you bid at not an average rate. (Average rates are however the way that it works on the secondary market). So the only thing an in-house bidder/underwriter would affect is the top rate achievable. The point of an underwriter is to make sure the loan fills, not to drag the rates down for other lenders. And that's exactly how things have been working on auction loans ... the underwriter makes sure the loan fills, but any reduction in achievable rates at the top end of the auction seems to have been driven by new bids from lenders who are actively bidding towards the end of the auction. Typically the top rates people have achieved in auctions have been not been much less than the max rate that you can bid at, maybe a few 0.1s of a % below.
|
|
grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 26, 2015 11:50:53 GMT
Thank you grahamg. I was just going on the old adage "If it looks too good to be true, it almost certainly is" but it is nice to have expert confirmation. I might still have a small punt if the in house bidder does not bring the rates down too far. Nice to be called an expert, which i am not. Have asked a couple of questions, got a prompt answer to my first which is good but i still don't understand why the need 30K when they should be sitting on a cash mountain. We are not being told something fundamental. Beginning to wonder if the current assets are not real (contracts invoiced but not paid for some reason ) also what the liabilities are when the don't buy anything.
|
|
grahamg
Member of DD Central
Posts: 220
Likes: 62
|
Post by grahamg on Sept 26, 2015 16:15:39 GMT
Read the abbreviated accounts that LC don't supply , should have done that before. They have no cash the current assets are all trade debtors probably a lot is carry over from 2014. Not getting paid for whatever reason.
nanniema take note!
|
|
|
Post by nanniema on Nov 7, 2015 10:43:19 GMT
Either the advice about Vxxxx xxxxxxi looks as if it was spot on or there has been an admin error with the first payment - two days late.
|
|
adrianc
Member of DD Central
Posts: 8,987
Likes: 4,813
Member is Online
|
Post by adrianc on Nov 7, 2015 11:03:02 GMT
Either the advice about Vxxxx xxxxxxi looks as if it was spot on or there has been an admin error with the first payment - two days late. I had an email from LC, blaming an FC-style first-payment-DD-cockup-delay.
|
|
jimbob
Member of DD Central
Posts: 317
Likes: 74
|
Post by jimbob on Nov 9, 2015 12:25:41 GMT
Update - 3-4 day (1st payment) delay due to security procedures from the cash leaving the borrower's bank.
I'll keep 'faith' for now.
|
|