|
|
Post by wiseclerk on Feb 16, 2016 12:32:38 GMT
|
|
sl75
Posts: 2,092 
Likes: 1,245
|
Post by sl75 on Feb 16, 2016 13:13:34 GMT
Regarding your headline... don't you mean "second" - Assetz Capital has had it's Quick Access Account for quite a while already. ... or did you set your threshold for "major" in order to exclude them?
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Feb 16, 2016 13:20:56 GMT
Regarding your headline... don't you mean "second" - Assetz Capital has had it's Quick Access Account for quite a while already. ... or did you set your threshold for "major" in order to exclude them? I would think the latter as assetz would not be classed as a major one currently
|
|
|
|
Post by propman on Feb 16, 2016 13:54:59 GMT
Thanks for that. I fail to see how removing fees increases liquidity, it just makes accessing that liquidity cheaper. It does gloss over the reality that there may be no liquidity! Also, IIRC, the complaints about the cost of sellout were after repayments had been made and this does not apply to the Monthly Market.
|
|
alender
Member of DD Central
Posts: 957
Likes: 647
|
Post by alender on Feb 16, 2016 15:27:53 GMT
Thanks for that. I fail to see how removing fees increases liquidity, it just makes accessing that liquidity cheaper. It does gloss over the reality that there may be no liquidity! Also, IIRC, the complaints about the cost of sellout were after repayments had been made and this does not apply to the Monthly Market. It turns it into 2 day access fund but with the possibility of a lock in. The quick access side could temp people who may need the cash quickly or those who wish to place funds in the month market ready to transfer to a longer term if/when rates rise. Howerver it looks like it is aimed at the instant access ISA.
|
|
spiral
Member of DD Central
Posts: 909
Likes: 456
|
Post by spiral on Feb 16, 2016 15:47:59 GMT
It turns it into 2 day access fund The website says "Same-day funds in bank account" but more importantly, do you have to match someone at the same rate? If not, how do you compensate the buyer if the sold out rate is lower than the buyers rate. I assume RS take that risk. I suspect, if demand is high, this could well turn into a fixed rate product rather than a market place whereby RS say the rate is x.x%, take it or leave it.
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Feb 16, 2016 16:21:40 GMT
The website says "Same-day funds in bank account" but more importantly, do you have to match someone at the same rate? If not, how do you compensate the buyer if the sold out rate is lower than the buyers rate. I assume RS take that risk. I suspect, if demand is high, this could well turn into a fixed rate product rather than a market place whereby RS say the rate is x.x%, take it or leave it. The change is "live" but they have not changed the lenders' agreement yet. I assume there has to be a buyer - unless they are using the PF for this  . If RS are taking the risk, I expect they will widen their margin to compensate. I agree that the market might well become fixed rate. Until it does, the big question is how many lenders will sell if today's market rate is above what they are currently earning, then immediately buy back? If there is nothing to stop this, and a lot of people do it, it could be expensive for RS. I will test this out and report back. Edit: There is nothing to prevent it, and I have just done it for a small amount.
|
|
alender
Member of DD Central
Posts: 957
Likes: 647
|
Post by alender on Feb 16, 2016 18:06:39 GMT
It turns it into 2 day access fund but more importantly, do you have to match someone at the same rate? If not, how do you compensate the buyer if the sold out rate is lower than the buyers rate. I assume RS take that risk. I suspect, if demand is high, this could well turn into a fixed rate product rather than a market place whereby RS say the rate is x.x%, take it or leave it. Is this a change as it takes 2 business days to get money from my holding account to my bank account after I have requested the transfer? I assume you can instantly move money from 1 month to holding account.
|
|
|
|
Post by propman on Feb 16, 2016 19:14:36 GMT
Thanks for that. I fail to see how removing fees increases liquidity, it just makes accessing that liquidity cheaper. It does gloss over the reality that there may be no liquidity! Also, IIRC, the complaints about the cost of sellout were after repayments had been made and this does not apply to the Monthly Market. It turns it into 2 day access fund but with the possibility of a lock in. The quick access side could temp people who may need the cash quickly or those who wish to place funds in the month market ready to transfer to a longer term if/when rates rise. Howerver it looks like it is aimed at the instant access ISA. But presumably you lose the interest on your funds, so only worth doing if the rate changes a lot or on the first day or 2. ie instant access on the loss of all interest!
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Feb 17, 2016 14:56:32 GMT
But presumably you lose the interest on your funds, so only worth doing if the rate changes a lot or on the first day or 2. ie instant access on the loss of all interest! No loss of interest. I received accrued interest on my test transaction yesterday.
|
|
investibod
Member of DD Central
Posts: 288
Likes: 152
|
Post by investibod on Feb 17, 2016 16:14:17 GMT
Based on what I have read so far, let me pose a hypothetical scenario.
You invest a lump of money in the market at the best rate you can get on a particular day - say 3.1%.
A week later, you see that you could get 3.6% for money invested on that day.
You cash out your 3.1% investment and immediately re-invest at 3.6%
So do a bunch of other people who also decide they can get a better rate.
Obviously I am simplifying regarding what rates you think you can get, but the principle is the same.
Is there anything to prevent you from doing this?
Will RS be absorbing the 0.5% difference in rates and if so how long will they be prepared to do this?
Any downside for you as an investor to taking these actions?
|
|
Investboy
Member of DD Central
Trying to recover from P2P revolution
Posts: 564
Likes: 201
|
Post by Investboy on Feb 17, 2016 16:48:46 GMT
I'll be cheering when they do the same on 1yr, 3yr and 5yr markets too.
Monthly market is very liquid and I can wait 30 days to access my funds. But sometimes one can't wait 1-5 years. So removing fees from longer markets would be a real progress.
Step in the right direction alas small.
|
|
|
|
Post by jackpease on Feb 17, 2016 17:25:18 GMT
I'll be cheering when they do the same on 1yr, 3yr and 5yr markets too. Monthly market is very liquid and I can wait 30 days to access my funds. But sometimes one can't wait 1-5 years. So removing fees from longer markets would be a real progress. Step in the right direction alas small. But if you removed fees from the longer market it wouldn't be a longer market??? Jack P
|
|
|
|
Post by Deleted on Feb 17, 2016 18:02:04 GMT
I'll be cheering when they do the same on 1yr, 3yr and 5yr markets too. Monthly market is very liquid and I can wait 30 days to access my funds. But sometimes one can't wait 1-5 years. So removing fees from longer markets would be a real progress. Step in the right direction alas small. But if you removed fees from the longer market it wouldn't be a longer market??? Jack P Most other P2P platforms have more established secondary markets, where a loan of any length can be sold at a premium or at the original rate. If exit fee's remain as they are Rate Setter will start to lose lenders to other sites that offer more flexibility.
|
|
adrianc
Member of DD Central
Posts: 9,014
Likes: 4,825
|
Post by adrianc on Feb 17, 2016 18:14:58 GMT
Most other P2P platforms have more established secondary markets, where a loan of any length can be sold at a premium or at the original rate. If a 5yr loan could be sold on at a premium or, indeed, at a fairly small discount or more - then what would be the point of the 3yr, 1yr and monthly markets?
|
|
.
