stevio
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Post by stevio on Nov 12, 2015 16:58:43 GMT
With the recent bigger loans, there is the opportunity to invest extremely heavily if you so wish, compared to the previous smaller loans
Additionally, the loans are for large amounts to only a handful of borrowers, so recently diversification has become tricky. However these are asset backed with individual assets, so only a small collection of lenders is less of a concern than the asset security itself
I appreciate the opportunity that Ed/MT has brought to the table, but it does leave me wondering how much I should expose myself too
The short time in business, lack of provision fund, no (current) secondary market puts me off compared to some other P2P's. However I have been impressed with the default rate, initial low LTV and Ed's openness to give the lender what they want.
I am am sure I am not the only one with this quandary and wondered what others thoughts are?
Has your exposure to MT changed?
How did you evaluate your limit of exposure?
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paulgul
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Post by paulgul on Nov 12, 2015 20:08:38 GMT
For me its a bit of a dilemma, I'm a relativity small time investor and currently have about 25% of my total P2P investment in MT, with another 25% in SS and the rest spread around. I been avoiding MT recently because of this imbalance, that said, I may put a bit in this latest loan. I will be a lot happier when the SM gets going
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Nov 12, 2015 21:24:44 GMT
I have a "hard-ish" limit I put in any loan anywhere.
Although I break this rule in SS because I don't want idle funds. So on some loans I doubled my exposure. But I'm not worried as I can liquidate the surplus any time and it will go in seconds on SM.
I'd be happy to break rule 1 and put more in the recent 2M loan (but this still would not make a blip on the radar) if there was SM on MT. So once the loan is drawdown I can rebalance my holding.
I have a feeling other lenders may share this view. Not only they could dispose parts of the loan later but they could also sell some older ones to free up funds for this one.
I'd dare to say that the success of such big loans lies in working SM.
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jonbvn
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Post by jonbvn on Nov 13, 2015 0:15:48 GMT
Personally, I am not prepared to put large sums into the latest offerings until I am clear on when and how the SM will work.
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webwiz
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Post by webwiz on Nov 13, 2015 9:31:31 GMT
With the recent bigger loans, there is the opportunity to invest extremely heavily if you so wish, compared to the previous smaller loans Additionally, the loans are for large amounts to only a handful of borrowers, so recently diversification has become tricky. However these are asset backed with individual assets, so only a small collection of lenders is less of a concern than the asset security itself I appreciate the opportunity that Ed/MT has brought to the table, but it does leave me wondering how much I should expose myself too The short time in business, lack of provision fund, no (current) secondary market puts me off compared to some other P2P's. However I have been impressed with the default rate, initial low LTV and Ed's openness to give the lender what they want. I am am sure I am not the only one with this quandary and wondered what others thoughts are? Has your exposure to MT changed? How did you evaluate your limit of exposure? You are not. I guess we all are.
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Post by Deleted on Nov 13, 2015 10:00:21 GMT
I have hard rules. 1) Total P2P to be invested 5% of capital. 2) Upper limit for each portal (~ 1/4 of total) assuming I have 6 portals 3) Aiming for each loan to be 1% of total but prepared to go to 2% if a big deal, especially if government backed loans (so turbine cash flows are great even with George (44 as the DT keeps reminding me) in the Treasury). 4) Slightly worried by the borrower across two portals issue, but as long as only occasionally not too worried 5) Individual company borrowing over multiple loans limited to 5% (hence Ed's hunt for new partners is key) 6) Some portals are now past it and in cash-out. Don't get too attached to anyone, when they don't want your business or do things that make you worried, walk. Still not worried about SM for deals <= roughly 1 year. Only feel the need for SM over 5 year loans. One thing I would caution is. "Write down your rules". If you don't then you don't have a plan. P@@@ poor planning leads to P@@@ poor execution. One thing this forum does for me is to challenge my thinking and helps me firm up the rules each time, so thanks guys and gals.  |
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pom
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Post by pom on Nov 13, 2015 10:00:45 GMT
I'm not too concerned yet as so far I've not been able to invest as much as I'd like to in the platform anyway....and at the moment it's mostly external factors stopping me invest a slightly larger stake in the recent loans (waiting for a property exchange/complete that's taking long enough to start making me nervous about committing too much more to p2p until I'm sure it's really going to happen). I hope that will sort itself out, and that by the end of the year I'll have reached the goal I had in mind for MT and will then may be be thinking about rebalancing a bit within the platform - so here's hoping the SM proves good! But even if it doesn't prove as liquid as we all expect, MT is currently only 7% of my overall p2p.
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SteveT
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Post by SteveT on Nov 13, 2015 10:54:05 GMT
MT is currently 12% of my P2P portfolio so I'm happy to see that grow towards my 25% maximum. Currently I'm up at 35% in SS, which is too high but FC's unexpected withdrawal from competitive P2P lending and the lack of sensible new loans elsewhere has forced my hand short-term.
Although obviously MT remains one of the smaller players, I feel it's also one of the most professionally run. I like the way it genuinely responds and adapts (quickly!) to lenders' requests and issues. For as long as this can be sustained, MT deserves to continue to grow exponentially.
As several people have commented already, the set-up of the latest loan auction makes it inevitable there'll be a late scramble to invest as soon as it looks likely / certain to fill. I suspect we may see a slightly different approach adopted in future as MT adapts to find the optimal solution.
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james
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Post by james on Nov 13, 2015 13:07:56 GMT
Has your exposure to MT changed? It varies significantly depending on the state of investments in other P2P as a percentage but as a raw number it's growing slowly. How did you evaluate your limit of exposure? Flexibly and strongly based on how survivable a total loss would be for my financial plans, weighted in part by relative returns and what those may do to improve the overall risk/reward picture. That is, more on capacity for loss than risk tolerance. As a percentage of total P2Pit's currently high but as a percentage of total investments it's under 10% and that's within my own risk tolerance and loss capacity for a single place risk exposure. Until SIPP and/or ISA investing is in place my MoneyThing investing is pretty much capped with only gradual increases periodically happening. This is also influenced by the VCT season that requires me to make funds available outside P2P for VCT purchasing. I'm likely to be quite unusual because I'm now anticipating placing something over 80% of my total investable money into P2P during the next year. That requires very careful attention to capacity for loss issues.
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ablender
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Post by ablender on Nov 13, 2015 13:20:41 GMT
I am still concerned about how I can keep diversity if ISA regulations do not allow us to split our allowance on many platforms.
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SteveT
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Post by SteveT on Nov 13, 2015 13:31:25 GMT
I am still concerned about how I can keep diversity if ISA regulations do not allow us to split our allowance on many platforms. Simply invest progressively over multiple years and choose a different platform for your Iffy-ISA each year.
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ablender
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Post by ablender on Nov 13, 2015 13:56:07 GMT
I am still concerned about how I can keep diversity if ISA regulations do not allow us to split our allowance on many platforms. Simply invest progressively over multiple years and choose a different platform for your Iffy-ISA each year. Will I loose the ISA status on the first one when the year is over?
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SteveT
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Post by SteveT on Nov 13, 2015 14:12:04 GMT
Simply invest progressively over multiple years and choose a different platform for your Iffy-ISA each year. Will I loose the ISA status on the first one when the year is over? No
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james
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Post by james on Nov 13, 2015 14:41:25 GMT
I am still concerned about how I can keep diversity if ISA regulations do not allow us to split our allowance on many platforms. Under current rules: For money paid in during previous tax years you can move, split or combine it into an unlimited number of places and move it between them as often as you like. If you have £100,000 of past year money you can split it into 1,000 pieces going to different ISAs if you want. Then you can swap them all and after that you can combine them all into s a single place again if you like. Whenever you like. Want to put past year money into one or two P2P platforms and new year money into a second or third? No problem, provided the usual rules apply to the P2P ISA. For money paid in during the current year you are limited to having it in a maximum of one cash ISA and one stocks and shares ISA at once, ignoring the JISA as well niche case. You can move all of the cash ISA money, all of the S&S ISA money if you want but it must be all of the money paid in during the current tax year, you're not allowed to leave some behind. HMRC recently clarified that closing the account being moved from is not required, transferring out all of the current year money will suffice. If the opportunity is not taken to introduce more flexibility for current year money in the P2P ISA you will be restricted to using one ISA manager for the P2P money. However, this is one ISA manager, not one ISA account, and an ISA manager is permitted to offer many accounts. You're allowed to open say a hundred different accounts if the ISA manager allows this. For example in a cash ISA you might have fixed, variable and mortgage saving ISA accounts, all having some current year money and completely within the rules because all three accounts are with the same ISA manager. There is at least one firm that is planning to be an ISA manager that will allow investing with multiple P2P platforms from within that ISA, just as it is routine today for S&S ISA to allow investments in lots of different funds and fund houses.
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nsinvestor
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Post by nsinvestor on Nov 17, 2015 14:45:04 GMT
With the recent bigger loans, there is the opportunity to invest extremely heavily if you so wish, compared to the previous smaller loans Additionally, the loans are for large amounts to only a handful of borrowers, so recently diversification has become tricky. However these are asset backed with individual assets, so only a small collection of lenders is less of a concern than the asset security itself I appreciate the opportunity that Ed/MT has brought to the table, but it does leave me wondering how much I should expose myself too The short time in business, lack of provision fund, no (current) secondary market puts me off compared to some other P2P's. However I have been impressed with the default rate, initial low LTV and Ed's openness to give the lender what they want. I am am sure I am not the only one with this quandary and wondered what others thoughts are? Has your exposure to MT changed? How did you evaluate your limit of exposure? I've been looking at MT to give me some more platform diversification within the secured commercial sector (I invest through SS and Ablrate in the 0-12 month maturities). The jump from upmarket pawnshop type loans to multi-million land/development lending is a very big step that concerns me. Having said all of that, I am going to invest in the new MT282 loan on the basis of slightly irrational logic. My opinion is that if everyone hesitates and waits for the platform to gain a broader investor base/have greater liquidity/have more loans for diversification, it will never get there. It benefits us all to have a wide choice of strong platforms, so I will accept a higher risk than usual in the interests of contributing (hopefully) to the growth and maturity of MT.
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