james
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Post by james on Oct 26, 2016 16:35:48 GMT
Thanks for confirming that. So, just how much of the information I gave is disclosed to buyers on your platform? The reason I'm posting is that the initial description posted here seemed more to be concealing the underlying facts than properly disclosing them and that struck me as wrong and meriting a complaint: simply, it's not anything lose to what I would regard as adequate or correct description from a broker and that's what wiseAlpha is indirectly acting as.
I don't know about you but I expect that the perceived and actual risk of a bond issued to a purely UK restaurant business may rightly be rather lower than money that was taken to fund a leveraged buyout by a private equity firm. Not that there's anything wrong with either, they are just different material facts relating to the lending decision that investors should be made aware of.
As you'll be aware, there's plenty of information provided to anyone who might buy it on the bond market directly, rather impractical though that can often be for individuals at typical deal sizes. Which, of course, is where wise Alpha comes in and has available margin to make.
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Post by Wisealpha on Oct 27, 2016 9:21:41 GMT
Hi James, We provide details and information on all of the loans and bonds listed on our site in the company description sections so people see a snapshot overview and capital structure and links to public accounts, website and the offering memorandums which provide our investors with a comprehensive set of information. So for example Pizza Expresses information is here: here www.wisealpha.com/loan/detail/21/pzzexpWe've posted the link to the company information page on our site to every bond on our site through this discussion. Thought we'd done the same for Pizza Express as well but it looks like we missed that. The point is if you want a comprehensive set of information on each investment it's available on our site. Kind regards,
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shimself
Member of DD Central
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Post by shimself on Oct 30, 2016 11:49:03 GMT
... Therefore, it's junior lenders and the equity owners who are most at risk - think of senior secured lenders as first class passengers in a plane with the equity holders sitting back in economy. ... Nice try, but first class passengers (at the front) are at greater risk in the event of a crash. New metaphor required, sorry.
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Post by Wisealpha on Oct 30, 2016 11:59:33 GMT
Ha, fair point. Although if a plane crashed, at least in First class you go out in style!
Another simple analogy would be like when a bank provides you with a mortgage it takes security over the house so if you fail to pay your interest or debt, it will take ownership of the property. In this case if the company fails to pay its interest or debt, investors have the company and all of its assets as security.
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james
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Post by james on Oct 30, 2016 13:11:27 GMT
So for example Pizza Expresses information is here: here www.wisealpha.com/loan/detail/21/pzzexpWe've posted the link to the company information page on our site to every bond on our site through this discussion. Thought we'd done the same for Pizza Express as well but it looks like we missed that. Thanks, good to see and that's effectively allayed my concerns that investors might be misled.
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Post by Wisealpha on Nov 1, 2016 16:56:51 GMT
Hi Guys, Just to let you know we are running a new promotion for all new users who open an account with WiseAlpha. New users pay 0% fees on all investments made before Nov 15th. Terms of the conditions of the offer are here: www.wisealpha.com/about-us/promotionsWe're keen to create a bigger following on the forum given most of the users here are pretty knowledgeable and keen to try something new. We think our platform has the potential to become a leading lending marketplace for investors given the focus on long established businesses and secured lending. We've had quite a few users already from this forum dip their toe in and would love to see some more. If there are any users who want to get more involved with Wisealpha as it develops let us know (e.g. blogging about us or becoming brand ambassadors or stakeholders, getting involved in beta testing and feedback as we develop new functionality, getting involved in higher risk but higher reward special situation investments). Question: Is it the right time (with the economic outlook) to upgrade and start lending to large, long established companies? Let us know your thoughts. Warm regards,
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jaswells
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Post by jaswells on Nov 2, 2016 0:22:51 GMT
I have a growing percentage of my savings with Wisealpha and have been extremely impressed with their level of professionalism and communication to date. I am also invested in AC,FS,SS,AC,FC, RS,MT and Zopa and customer service experience is mixed. RS and Zopa feel most secure due to their longevity and I would rank the remainder on a similar level, they are untested in a downturn and still very much in the early stages of business development.
In terms of investments made I feel wisealpha offers the highest quality investments across my portfolio. These are senior secured debt instruments with some highly profitable, diversified multinational companies. Elsewhere for a couple of percentage points more I am invested in some rather dubious small businesses with almost no track record of profitability and potentially overvalued single securities.
To diversify I would encourage potential investors to give WA a go. The 1% promotion makes for some really decent returns.
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Post by webbski9 on Nov 2, 2016 7:41:34 GMT
Is it £100 min investment per loan and is there a SM ?
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shimself
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Post by shimself on Nov 2, 2016 10:00:27 GMT
With 4% inflation on the horizon and no SM, it might be wise to be cautious. Unless you're really really cautious. The blurb promises libor linked loans (which comes close to inflation linking), but there's only one.
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Post by Wisealpha on Nov 2, 2016 11:44:09 GMT
Is it £100 min investment per loan and is there a SM ? Hi webbski9, Yes, it's £100 min. investment. We have a secondary market and are gradually releasing it to investors (if you ask we can switch it on for you) - but in any case should be fully available to everyone before the end of the year.
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Post by Wisealpha on Nov 2, 2016 12:00:54 GMT
With 4% inflation on the horizon and no SM, it might be wise to be cautious. Unless you're really really cautious. The blurb promises libor linked loans (which comes close to inflation linking), but there's only one. Hi Shimself, We'll add some further libor linked investments soon. I think from our perspective we aren't so sure that inflation will hit 4% next year because we think the NIESR's forecast for growth is too high and underplays the risk of the government not being able to manage an orderly Brexit. In any case we'll have more of a choice between fixed and floating in 2017 so people can make their own decisions on what suits them best - frankly there are so many variables to consider post Brexit it's very hard for any forecast to be reliable. However, our basic focus on large companies (that have operated successfully in the past during difficult economic periods) we hope will stand us in better stead than lending on an unsecured basis to small business and individuals. Question to Jaswells (thanks for the kind feedback - we'll keep trying to improve and deliver more value to our customers) - Is Virgin media risk at 5.7% YTM less risky than an entire portfolio at some of the main P2P platforms in your opinion? Kind regards,
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jaswells
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Post by jaswells on Nov 2, 2016 23:47:13 GMT
Is Virgin media risk at 5.7% YTM less risky than an entire portfolio at some of the main P2P platforms in your opinion?
It is an interesting question and as retail investors we often work with limited information. VM has a good credit rating, has strong market presence, brand and its balance sheet is exceptionally strong. In a healthy mix of 10-20 investments on SS and MT I would expect one or two to hit difficulties. However with VM you need to be willing to tie up your funds for 13 years (gulp) as at this point we cannot guarantee selling into a SM (The time frame is much less on other options however). Portfolios in p2p can be for 6-12 month loans so a different proposition all together and rates could be as high as 10-12%. The closest would be a 5 year RS account where presently 5.7% is quite difficult to achieve.
So its very difficult to answer the question but its definitely better than average in p2p. At present WA is better as a 'fire and forget' proposition with rates in very safe investments which you simply cannot get elsewhere. Other retail/mini bonds (4-7%) simply don't have the level of security. Preference shares, PIBS or (in particular) ordinary shares all have different layers of risk without better returns with a real possibility of capital loss over a medium term.
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jaswells
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Post by jaswells on Nov 3, 2016 1:19:22 GMT
Yes, Zopa,FC and RS are the more established, safe (?!?) p2p lenders on the market, although their platforms don't always feel that way. Their loan volume is consistent, strong and varied. Rates have been falling which is a reason to look at alternatives and long term returns for Zopa Plus lenders still unknown. I would put almost every other platform on a similar risk level in an overcrowded market. Certainly some appear to be getting a real foothold and market share (SS, MT,AC etc ) but its early days and consolidation is likely.
I think WA works for someone who feels maxed out in other P2P companies and needs to spread their capital further. Newbies might be put off by the apparent complexity of their offering but at least it is genuinely different to yet another BTL, piece of farmland or mysterious small company loan elsewhere. Its also significantly less work than trying to continuously monitor your individual loan investments in AC or SS for example.
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Post by webbski9 on Nov 3, 2016 8:35:26 GMT
WiseAlpha. Please "turn on" the SM button for me please. When trading on the SM can one deal in amounts smaller than 100 pounds ? And can one sell parts of owned loans i.e. sell 50 pounds of a 100 pound owned loan part? Regards webbski9
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Post by webbski9 on Nov 3, 2016 8:41:55 GMT
WiseAlpha.Is there really a 5 year "lock-in" on investments via your platform? Cant see how that can be ( if it does) when you have created a SM
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