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Post by wiseclerk on Jan 19, 2016 10:15:07 GMT
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SteveT
Member of DD Central
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Post by SteveT on Jan 19, 2016 10:22:18 GMT
I think the fixed pre-fund allocations apply on loans up to £1m, not £500k
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 19, 2016 10:41:51 GMT
Great update wiseclerkYou don't talk much about the SM; is it something you avoid in favour of pre-funding, or are you finding it too hard to invest via the SM?
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webwiz
Posts: 1,133
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Post by webwiz on Jan 19, 2016 10:48:52 GMT
Those of us who have been with SS for over a year and have well diversified portfolios are in quite a nice place. Interest earned already covers one total loss (very unlikely to happen IMO) or several partial losses. With the PF as a buffer it will take a major disruption to put us in a worse position vis a vie a traditional account.
E.g. WWIII, asteroid impact, JC becoming prime minister ....
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SteveT
Member of DD Central
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Post by SteveT on Jan 19, 2016 10:51:16 GMT
Those of us who have been with SS for over a year and have well diversified portfolios are in quite a nice place. Interest earned already covers one total loss (very unlikely to happen IMO) or several partial losses. With the PF as a buffer it will take a major disruption to put us in a worse position vis a vie a traditional account. And our only interest in the SM is to recycle older loans for new!
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Post by wiseclerk on Jan 19, 2016 11:01:53 GMT
Great update wiseclerk You don't talk much about the SM; is it something you avoid in favour of pre-funding, or are you finding it too hard to invest via the SM? Actually I used the secondary market nearly exclusively as a seller not a buyer. I never had to wait long to invest my cash in new loans on the primary market. Sometimes I invested a large chunk in just one new loan just to get it invested. Once the next loan launched I sold part of the first loan (which sometimes was only a few days old) and reinvested it in the new loan to achieve better diversification. I realize it is more difficult if you start just now with SS or want to invest large amounts but I actually had no problems to invest my deposits quickly
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Post by wiseclerk on Jan 19, 2016 11:02:51 GMT
I think the fixed pre-fund allocations apply on loans up to £1m, not £500k I am pretty sure it was 500K. Are you sure? Or did they change it again sometime from the original announcement and I missed it?
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SteveT
Member of DD Central
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Post by SteveT on Jan 19, 2016 11:05:36 GMT
I think the fixed pre-fund allocations apply on loans up to £1m, not £500k I am pretty sure it was 500K. Are you sure? Or did they change it again sometime from the original announcement and I missed it? It was £500k when they were capping pre-fund requests at £20k. However the post that announced the new "bottom up" fixed allocations for small loans stated £1m
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 19, 2016 11:25:52 GMT
Great update wiseclerk You don't talk much about the SM; is it something you avoid in favour of pre-funding, or are you finding it too hard to invest via the SM? Actually I used the secondary market nearly exclusively as a seller not a buyer. I never had to wait long to invest my cash in new loans on the primary market. Sometimes I invested a large chunk in just one new loan just to get it invested. Once the next loan launched I sold part of the first loan (which sometimes was only a few days old) and reinvested it in the new loan to achieve better diversification. I realize it is more difficult if you start just now with SS or want to invest large amounts but I actually had no problems to invest my deposits quickly Thanks wiseclerk some good advice I started in December last year, and I must admit that between then and now I was able to invest my money fairly quickly on the SM, with help from some quick hands & luck (even with botgate going on). However; now the SM is becoming harder to invest in, I think other new members should take note from your article (your strategy in particular) that SS is a long term investment that requires time to build a portfolio (primarily via pre-funding), and that they can’t just expect to invest their lump sum on the SM immediately
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Post by wiseclerk on Jan 19, 2016 14:01:15 GMT
It was £500k when they were capping pre-fund requests at £20k. However the post that announced the new "bottom up" fixed allocations for small loans stated £1m Thank you! Have corrected that in the article.
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Post by savingstream on Jan 19, 2016 17:20:35 GMT
Thank Wiseclerk, very interesting article. We are very pleased to have you on board.
With reference to comments about investing via the SM, it is primarily there for the purposes of providing an easy 'out' rather than 'in' and in our humble opinion does that job very very well. Most people do not want to sell their holdings as they are becoming increasingly confident in our ability to protect and grow their investments.
For the 'in' the best route to invest is as Wiseclerk said, buy in to the larger/new loans to get invested then sell to diversify if the opportunity presents itself.
We are taking on staff to seek further loan opportunities whilst also maintaining a very tight underwriting policy. Pipeline coming through the system is looking incredibly strong with another loan agreed today and instructed with the solicitors and another 2 probably being instructed before the end of the week.
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