madpierre
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Post by madpierre on Dec 7, 2015 10:23:21 GMT
I am also in the no need for pre-funding camp at this present stage. I am happy to continue with the 1% maximum bid system despite not always being around to get a slice of every loan but content that I have a reasonable chance when my finger is poised for action. This is also the case at FS and I would be agreeable if MT adopted their system with roll-overs to give new lenders a better chance. Pre-funding was the saviour at SS for me because they didn’t have maximum bids in place and nor at present does Ablrate, which has resulted in bidding for smaller loans being an utter shambles. A pre-funding system is to be introduced there but weighted to favour larger investors, which is not ‘fair’ in my view and I hope would never be introduced here. MT is my preferred platform because it considers all investors equally and for that earns my respect and indeed most of my funding
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adx
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Post by adx on Dec 7, 2015 12:52:26 GMT
Pre-funding was the saviour at SS for me because they didn’t have maximum bids in place and nor at present does Ablrate, which has resulted in bidding for smaller loans being an utter shambles. A pre-funding system is to be introduced there but weighted to favour larger investors, which is not ‘fair’ in my view and I hope would never be introduced here. Where does it say pre-funding will be weighted in favour of larger investors? ablrateandy's post on the 5/12/15 regarding the new container loan says it will be allocated pro rata. Did I miss something?
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madpierre
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Post by madpierre on Dec 7, 2015 13:38:30 GMT
Pre-funding was the saviour at SS for me because they didn’t have maximum bids in place and nor at present does Ablrate, which has resulted in bidding for smaller loans being an utter shambles. A pre-funding system is to be introduced there but weighted to favour larger investors, which is not ‘fair’ in my view and I hope would never be introduced here. Where does it say pre-funding will be weighted in favour of larger investors? ablrateandy's post on the 5/12/15 regarding the new container loan says it will be allocated pro rata. Did I miss something? From the statement "You will be able to “pledge” up to the amount of your Available Funds. After the pledging window is closed, Ablrate will first designate a maximum amount that any one lender can receive and secondly pro rata people based upon the amount that they were willing to commit".
Funds must already be available in your account before pledging, which naturally favours larger lenders.
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adx
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Post by adx on Dec 7, 2015 14:36:02 GMT
Where does it say pre-funding will be weighted in favour of larger investors? ablrateandy's post on the 5/12/15 regarding the new container loan says it will be allocated pro rata. Did I miss something? From the statement "You will be able to “pledge” up to the amount of your Available Funds. After the pledging window is closed, Ablrate will first designate a maximum amount that any one lender can receive and secondly pro rata people based upon the amount that they were willing to commit".
Funds must already be available in your account before pledging, which naturally favours larger lenders.
I don't see this as being 'weighted' to favour large investors. You just have to actually have the money you're pledging. Unlike SS where people game the system bidding amounts they never intend to invest. Also, the way I read the statement ' Ablrate will first designate a maximum amount that any one lender can receive' means very large bids will be capped, therefore favouring smaller investors. Don't get me wrong. I don't think either system is great. Ablrate will see lots of money being deposited and then withdrawn - if their system is not automated it will increase the work load and the possibility of mistakes. SS's original idea was better where the system actually was weighted towards the small investor, but they dropped that without notice so that they didn't p**s off some of their larger investors.
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jonno
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Post by jonno on Dec 7, 2015 14:54:44 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan"
This , I assume is a worthy attempt to reward the loyalty of early investors in Ablrate rather than trying to favour large or small investors.
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SteveT
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Post by SteveT on Dec 7, 2015 14:57:48 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan" This , I assume is a worthy attempt to reward the loyalty of early investors in Ablrate rather than trying to favour large or small investors. I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ?
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Investor
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Post by Investor on Dec 7, 2015 14:58:37 GMT
which is not ‘fair’ in my view
Would be interested in forum members definition of fair. As an example, if someone bids £500 on a loan and I bid £100. on launch if there is only £500 available should I get my £100 and the other chap get £400 (seems simplistically fair), or should they get £416.66 and I get £83.33, which means we have both got an identical size proportion of what we wanted, we have both then been treated identically fairly or unfairly depending on how much water you have in your glass. Seems to me that 'fair' can mean a different thing depending on each individuals personal circumstances. Don't ever forget that the larger investors are critical to many of the P2P sites to keep their deal flow moving and many of those investors will quickly move elsewhere if they are getting £100 slices on £10,000 pre-bids, due to smaller investors getting 'fair' treatment. Once they have moved on the smaller investors can then enjoy the slow prolonged death of their favourite P2P site which can no longer operate cost effectively churning out small loans to small investors without the larger financial backing they previously enjoyed. One day there will be a book called 'The History of P2P Lending' and some of the examples of this that we have previously seen will be available as bedtime reading. It's a fine balance for sure, but think Ablrate are probably treading the line in the 'fairest' way possible
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Investor
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Post by Investor on Dec 7, 2015 14:59:47 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan" This , I assume is a worthy attempt to reward the loyalty of early investors in Ablrate rather than trying to favour large or small investors. I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ? You want to be rewarded twice!!
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SteveT
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Post by SteveT on Dec 7, 2015 15:07:28 GMT
I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ? You want to be rewarded twice!! At least!
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madpierre
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Post by madpierre on Dec 7, 2015 15:09:31 GMT
From the statement "You will be able to “pledge” up to the amount of your Available Funds. After the pledging window is closed, Ablrate will first designate a maximum amount that any one lender can receive and secondly pro rata people based upon the amount that they were willing to commit".
Funds must already be available in your account before pledging, which naturally favours larger lenders.
I don't see this as being 'weighted' to favour large investors. You just have to actually have the money you're pledging. Unlike SS where people game the system bidding amounts they never intend to invest. Also, the way I read the statement ' Ablrate will first designate a maximum amount that any one lender can receive' means very large bids will be capped, therefore favouring smaller investors. Don't get me wrong. I don't think either system is great. Ablrate will see lots of money being deposited and then withdrawn - if their system is not automated it will increase the work load and the possibility of mistakes. SS's original idea was better where the system actually was weighted towards the small investor, but they dropped that without notice so that they didn't p**s off some of their larger investors. Precisely
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ablender
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Post by ablender on Dec 7, 2015 15:12:41 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan" This , I assume is a worthy attempt to reward the loyalty of early investors in Ablrate rather than trying to favour large or small investors. I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ? Will you be selling something else?
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jonno
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Post by jonno on Dec 7, 2015 15:14:59 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan" This , I assume is a worthy attempt to reward the loyalty of early investors in Ablrate rather than trying to favour large or small investors. I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ? No On the other hand, if you'd like to buy my loan parts at about a 30% premium PM me. That way, we'll both feel warmly rewarded.
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SteveT
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Post by SteveT on Dec 7, 2015 15:15:35 GMT
I was an "early investor" but accidentally sold my stake on the SM (honestly, I didn't want to sell but someone bit at a daft price). Will I be rewarded .... ? Will you be selling something else? I can do you a bit of amortising energy-from-waste loan at a "dodgy discount" if you like? [This conversation really should migrate to the Ablrate board!]
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ablender
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Post by ablender on Dec 7, 2015 15:17:15 GMT
ABLrate have their own problem with regard to SM.
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adx
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Post by adx on Dec 7, 2015 15:23:13 GMT
In actual fact, neither of you are quoting Andy's email accurately in its entirety.He actually states: "_ _ the allocation will be based upon a pro rata of pledges but there may be a slight bias towards investors in the maturing loan" I deliberately didn't include that part as I didn't consider it relevant to the overall policy of 'fair' distribution of loans in general and also the bias being 'slight'. It would also tie in with the whole 'Auto renewal unfair on new investors?' thread with existing investors getting preferntial (if only slight) treatment. Personally, I think the people who risked their money and made the loan work the first time around should be rewarded, and I'm saying this as someone who has annoyingly just missed out on a renewal on FS by nano seconds.
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