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Post by zzr600 on Jun 13, 2016 13:42:16 GMT
Sub 12%? Well, assuming a Brexit trashes Sterling, then NO! Why get sub (or even 12%) returns on a currency that is rapidly devaluing?
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bernard
Member of DD Central
Posts: 66 
Likes: 24
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Post by bernard on Jun 13, 2016 14:01:29 GMT
Agree with a lot of above commnets. If it really were (say) 10% for better secured loans, then fair enough. However experience on other platforms show that what is going on here is simply a migration to MORE risky loans in a competitive marketplace (for borrowers) as platforms try to increase volume throughput at the expense of loan quality, or return on risk (seeing as the profit model of the platform is volume driven). They want to put through more loans, so they start accepting riskier loans at skinnier rates. We have already seen the migration from PBLs to DFLs. Time to look elsewhere.
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oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
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Post by oldgrumpy on Jun 13, 2016 14:03:39 GMT
Sub 12%? Well, assuming a Brexit trashes Sterling, then NO! Why get sub (or even 12%) returns on a currency that is rapidly devaluing? Because it is better than getting sub (or even 1%) returns on a currency that is rapidly devaluing! 
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Post by dualinvestor on Jun 13, 2016 14:28:16 GMT
Sub 12%? Well, assuming a Brexit trashes Sterling, then NO! Why get sub (or even 12%) returns on a currency that is rapidly devaluing? Because it is better than getting sub (or even 1%) returns on a currency that is rapidly devaluing! Although if the model suggested by some pans out (Brexit vote followed by short/medium term sterling decline in itself followed by sterling recovery) one would be better not holding sterling at all. Trouble is a)I can predict everything but the future and b) even if the scenario is right, timing.
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Post by zzr600 on Jun 13, 2016 14:40:00 GMT
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Post by dualinvestor on Jun 13, 2016 14:47:43 GMT
I presume Bitcon was deliberate
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Post by extremis on Jun 13, 2016 17:49:17 GMT
I am new at p2p lending, currently investing on just one platform. I was considering to start investing on SS, but if they lower the interest rate, i will certainly look elsewhere.
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Post by harvey on Jun 14, 2016 0:14:11 GMT
I am new at p2p lending, currently investing on just one platform. I was considering to start investing on SS, but if they lower the interest rate, i will certainly look elsewhere. Well in that case get invested now my friend because there is plenty available at 12% with quite long terms still to go. It's still 12% across the board even with the new loans launching this week.
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Post by Deleted on Jun 27, 2016 10:11:44 GMT
I think lower rates will be on hold for now.
If anything rates on all P2P sites may rise and cashback offers will increase in this period of uncertainty.
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Post by harvey on Jun 27, 2016 10:27:44 GMT
Yes.
I was thinking myself that saving stream may have to increase the rate from 12% to 13% just to keep investors interested. It's all changed in the last few days and I'm not interested in investing in property backed stuff especially London property backed stuff for 12% at the moment with all of the uncertainty thats every where you look at the moment.
I think there were some people getting a bit carried away pre brexit vote and some had seemed to have a bit too much bravado almost in a boastful way and had become somewhat complacent.People who wrote of the risks and Expressed concerns and reduced their investments got almost ridiculed as wimps by some.
But I do wonder if a temporary for one month only lifting the rate to 13% or even 14% would be what's needed to draw in more investors and get the secondary market moving and enable new loans to launch. Right now my pre fund is 0 across the board and that's how it's staying until things are a lot clearer which could be quite a long time. My guess would be a lot have the same approach and getting anything sizeable off the ground could be pretty difficult without significant incentives.
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