c88dnf
Member of DD Central
Posts: 364 
Likes: 266
|
Post by c88dnf on Apr 10, 2016 15:59:51 GMT
Something unusual appears to have happened to Ratesetter's loan book in the last week or so. In the week to April 9th, the amount on loan appears to have reduced by £6.8 million, though I should add that the amount on loan remains at a robust £575 million. I haven't seen any reduction in RS's loan book over the last two years, so it's a very unusual event. Anyone have any inklings why? westonkevRS ? The data I'm using is from my tracking spreadsheet attached to this post. Columns Z and AC of the second tab are the relevant ones. They use Ratesetter's statement of the amount on loan on its wesbite (click Ratesetter Info/ Provision Fund). P2P lending stats.xls (110.5 KB) |
|
|
|
Post by westonkevRS on Apr 10, 2016 20:18:17 GMT
Very observant, I have to say. Yes we did receive payment back from one of our commercial partners. But I'm not going to go into detail of why for commercial reasons - except to say that all is good and the early repayment was more than welcome as most of the fees (including to the Provision Fund) had been paid.
Kevin.
|
|
|
|
Post by westonkevRS on Apr 10, 2016 20:31:29 GMT
Interestingly we are getting very close to that half-way point where we've had more money paid back (£563,941,569) than it outstanding (£575,228,849). This to me as a risk manager is quite exciting, as Rhydian is fond of saying - "it's easy to lend money, far harder to get it back!").
Noting also that the Provision Fund has had to step-in for less than 50% of contributions. And we have a mature "cleaned" book and many PF owned loans are paying regular repayments. "Fortuitous Recoveries" as I understand accountants call it. Portfolio behaviour to date could have been better, I'm never satisfied, but all in all a reasonable performance.
Kevin.
|
|
c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Apr 11, 2016 11:31:25 GMT
Interestingly we are getting very close to that half-way point where we've had more money paid back (£563,941,569) than it outstanding (£575,228,849). This to me as a risk manager is quite exciting, as Rhydian is fond of saying - " it's easy to lend money, far harder to get it back!"). Noting also that the Provision Fund has had to step-in for less than 50% of contributions. And we have a mature " cleaned" book and many PF owned loans are paying regular repayments. " Fortuitous Recoveries" as I understand accountants call it. Portfolio behaviour to date could have been better, I'm never satisfied, but all in all a reasonable performance. Kevin. Many thanks for your quick responses Kevin. I wish another leading lender was as open and communicative as Ratesetter.
|
|
am
Posts: 1,495
Likes: 601
|
Post by am on Apr 11, 2016 18:10:46 GMT
Noting also that the Provision Fund has had to step-in for less than 50% of contributions. Kevin. That seems to be saying that approaching 50% of loans run into problems (even if it's just the borrower forgetting to make his monthly payment). That seems rather high, so I assume that I misunderstand. Could you clarify please.
|
|
|
|
Post by GSV3MIaC on Apr 11, 2016 19:00:58 GMT
I believe he means that, having collected £x as provision fund contributions on loans A-Z, he has (so far) had to pay out £x/2 on those loans (or rather "the ones of those loans which have gone bad"). I'm sure he'll be along to correct us if necessary later.
|
|
|
|
Post by westonkevRS on Apr 11, 2016 20:32:32 GMT
Noting also that the Provision Fund has had to step-in for less than 50% of contributions. Kevin. That seems to be saying that approaching 50% of loans run into problems (even if it's just the borrower forgetting to make his monthly payment). That seems rather high, so I assume that I misunderstand. Could you clarify please. Crikey, I hope not. We are a prime lender! I mean of the Provision Fund contributions, we've had to use less than 50% despite getting half the money back. And this ignores any future income on loans already booked from ongoing payments or default recoveries, and a cleaner book.
|
|
