treeman
Member of DD Central
Posts: 1,026 
Likes: 557
|
Post by treeman on Nov 10, 2015 18:08:14 GMT
|
|
|
|
Post by ablrateandy on Nov 10, 2015 18:25:18 GMT
Interesting, but the problem won't get any better. The problems for any of these funds are the massive drag of uninvested cash and the fact that rates will inevitably fall over the years and the appeal will fall correspondingly.
If I was running one of these all I would do is just buy as much five year product as I could and sod off on holiday for 4 years and 11 months.
|
|
jonbvn
Member of DD Central
Posts: 326
Likes: 95
|
Post by jonbvn on Nov 10, 2015 23:57:01 GMT
Interesting, but the problem won't get any better. The problems for any of these funds are the massive drag of uninvested cash and the fact that rates will inevitably fall over the years and the appeal will fall correspondingly. If I was running one of these all I would do is just buy as much five year product as I could and sod off on holiday for 4 years and 11 months. You are correct. I have thought that it would not be too hard to trade the margins in P2P given a large amount of cash and a well diversified portfolio. Major issue so far is that there are just not enough loans to satisfy demand. Now all I need is FCA registration 
|
|
|
|
Post by ablrateandy on Nov 11, 2015 0:03:31 GMT
Get to the back of the queue....
|
|
|
|
Post by Deleted on Nov 11, 2015 9:00:04 GMT
I would think that the lack of a "moat" is the key reason that the share price will not be enhanced. Still at least we don't have a mirror-fund yet...
|
|
|
|
Post by domUP on Nov 12, 2015 12:50:39 GMT
Now all I need is FCA registration Not going to lie - that's not the quickest thing to get!! 
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Nov 13, 2015 17:41:33 GMT
Given that P2P platforms tell us that institutions love P2P and a tsunami of money is coming, then there should be no lack of demand for P2P closed end trusts from those same institutions.
There would appear to be no shortage of funds coming in to these closed end trusts -- from both individuals and institutions. Their problem isn't raising funds, it's deploying/investing the money into interest-paying loans. If a trust finds itself with a significant proportion of their assets idle, then they're going to have difficulty producing the returns their investors are expecting. So the NAVs will stay high -- idle cash doesn't produce a drag on NAVs -- but the dividends will come up short, and that's a recipe for shares selling at a significant discount to their NAVs. I'm coming to the conclusion that those who invested in these trusts in their early days -- and that includes me -- may have jumped the gun. I think I'll delay further investments until I can see that the trusts have put their money to work. (It isn't enough to look just at dividend payout rates, because those could turn out to be financed by the uninvested capital, though that ought to be detectable if NAVs start declining noticeably.)
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Nov 13, 2015 17:59:53 GMT
...Personally, at these levels, I think VSL and P2P Global are probably now ok buys. The older funds have far less unencumbered cash and have their funding lines are set up. Of course, while buying some VSL yesterday at 96.25, I probably also should have bought some Kevlar gloves to catch the falling knife as it goes straight to 80!
I was foolish enough to subscribe for VSL's recent offer at par. Now 92.75. I think mikes1531 is right about discounts. Those gloves might be needed...
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Nov 13, 2015 18:45:51 GMT
I was foolish enough to subscribe for VSL's recent offer at par. Now 92.75. I have to admit my timing wasn't any better. I bought my VSL shares in mid-May, paying just under 101p for them. My record on P2P Global isn't any better. I also bought those shares in mid-May, paying just under 1100p for them. They're now just under 1000p. 
|
|
