alison
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Post by alison on Dec 4, 2015 16:45:02 GMT
Surprised it hasn't been posted - but there's still a few hundred ££s on a tiddler available on FS.
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LittleBear
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Post by LittleBear on Dec 4, 2015 17:21:28 GMT
Thanks alison! I got the last bit. I don't remember seeing an email about it, nor was it posted in the forthcoming loans thread on this board. |
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mikes1531
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Post by mikes1531 on Dec 4, 2015 21:00:46 GMT
Surprised it hasn't been posted - but there's still a few hundred ££s on a tiddler available on FS. Thanks alison ! I got the last bit. I don't remember seeing an email about it, nor was it posted in the forthcoming loans thread on this board. How big was the loan in total? IIRC, FS have said that they won't pre-announce any loan smaller than £1000. There's not really any point in doing that -- they'd fill instantly in seconds and many people who made a special effort to be on the website at the appointed time would end up frustrated and empty-handed. That wouldn't do FS any good at all, so I can understand their position. In fact, considering how quickly the two loans released at 1100 today were funded, it may be time for FS to increase the loan size announcement threshold to £1500 or more.
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LittleBear
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Post by LittleBear on Dec 4, 2015 21:35:25 GMT
Ah, I assumed they notified us of all loans. This one was for £1000, so that explains it. I'll have to check the site more often - just in case!
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pa
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Post by pa on Dec 5, 2015 7:36:32 GMT
Obviously it's dependent on what comes through the door and when at FS Towers, but I'm surprised that they haven't looked at packaging loans together from different borrowers.
E.g £10,000 of assorted jewellery @ 12%.
The constituents of the bundle would need to be listed so people could work out the weighting of the items in the bundle (not everyone will want to borrow the same amount, not every item will be worth the same amount) and see if they feel they are mitigating risk by spreading over more borrowers or facing a higher chance of a loss of a portion of their capital by having more borrowers in one loan.
This gives more people the chance to get in on loans - given a sensible bid restriction. It also saves them from having to deal with the frustration of those who are missing out.
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LittleBear
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Post by LittleBear on Dec 5, 2015 9:22:20 GMT
Yes, in the same way as MT and Abl offer managed 'baskets' of small loans as a single investment. It would make sense for FS to do similar if they have the flow of smaller loans to make it work.
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ablender
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Post by ablender on Dec 5, 2015 12:07:28 GMT
I currently have a limit of £25/loan. If each small loan is separate I put £25 in each that I like. If they are combined in a basket I will probably still put £25.
How can I calculate the increased/reduced risk for a basket of loans and how will it effect diversification?
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pa
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Post by pa on Dec 5, 2015 13:42:02 GMT
I currently have a limit of £25/loan. If each small loan is separate I put £25 in each that I like. If they are combined in a basket I will probably still put £25. How can I calculate the increased/reduced risk for a basket of loans and how will it effect diversification? Arithmetically it's quite simple but statistically I don't think it's possible in this case. People use risk and diversification in so many different way the terms become quite nebulous so it gets difficult to say anything without getting involved in semantics with others that use different definitions. If a loan of £1000 is made up of 10 loans of £100. 1 loan doesn't repay so you get 90% of you capital back and hope that the rest is covered by the sale of the asset (I'm ignoring the interest component for the sake of brevity). 2 loans go pop you get 80% of your capital back and hope that 20% is returned from the sale of the asset, etc, etc. Working out what percentage of the loans default isn't really possible. If we were actuaries using life span data working out life insurance premiums it would be possible. For our scenario we don't have the data to "predict" what % of loans will default - which is what people actually want to "know". The reason I mentioned jewellery in the example above as it easier to treat as one big loan, rather than lots of things that might on face value seem similar but actually are quite different. I.e. if someone doesn't pay back its quite easy to melt down and get paid for it. Melting down a car isn't really going to produce the desired result. I've often thought, even with the risk of gold prices falling further, that the FS model was quite generous to investors on jewellery, but then it takes two sides to make a trade.
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ben
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Post by ben on Dec 5, 2015 13:55:52 GMT
when they did the 3 loans yesterday i did not even see one of them must have gone that quick
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ilmoro
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Post by ilmoro on Dec 5, 2015 14:01:12 GMT
Yes, in the same way as MT and Abl offer managed 'baskets' of small loans as a single investment. It would make sense for FS to do similar if they have the flow of smaller loans to make it work. Who would be the borrower? On MT & the specific ABL loan aglomeration is done by a third party who we lend to against the basket of loans so such a approach works. FS loans are to individuals so FS would have to be the agglomerator (or involve a third party who would take a cut) and that does not fit in with their 'true' P2P structure.
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