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Post by jackpease on Jun 22, 2016 7:39:18 GMT
I can't see this discussed elsewhere...
So yesterday announced FC was to get £100m bung from European Investment Bank to aid funding of small firms .... surely this'll make declining returns for us lenders decline even quicker?
Trying to avoid the usual anti-FC diatribes - I can't quite get my head round it but surely it may *seem* administratively easier for FC to squeeze out retail lenders like ourselves but if they become too reliant on bulk funding, won't they lose the external/crowd scrutiny that differentiates p2p from banks? If big players like FC don't have retail lenders, then is it not functioning as a quasi-bank but without the red tape/regulation of a bank and therefore unfairly?
Jack P
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fp
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Post by fp on Jun 22, 2016 7:46:33 GMT
£100 million is peanuts and most likely to be fed in like the current government 10%, how much is the current loan book worth?
Also seems to be coming at a rather convenient time!
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Post by GSV3MIaC on Jun 22, 2016 7:58:56 GMT
It is not peanuts vs the current loan book, and Crowd DD ended some time ago. Did y'all not notice?
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kt
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Post by kt on Jun 22, 2016 8:12:20 GMT
It is not peanuts vs the current loan book, and Crowd DD ended some time ago. Did y'all not notice? What percentage of FC lending is even P2P any more? With large institutional investors, government and other lending it seems that FC is now just another large lender.
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blender
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Post by blender on Jun 22, 2016 9:07:35 GMT
It is not peanuts vs the current loan book, and Crowd DD ended some time ago. Did y'all not notice? Agree completely. But it's not just DD. The problems with the repayment of property loans show, imo, that FC wish to provide de facto flexible length loans by managing the endings without reference to lenders or their interests. FC wish to act as the lender to their borrower customers, the real lenders treated as a source of cash with no supervision. Up to 15% fees to FC after 90 days and no penalty rate of interest for lenders speaks volumes.
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am
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Post by am on Jun 22, 2016 10:12:37 GMT
I can't see this discussed elsewhere... So yesterday announced FC was to get £100m bung from European Investment Bank to aid funding of small firms .... surely this'll make declining returns for us lenders decline even quicker? Trying to avoid the usual anti-FC diatribes - I can't quite get my head round it but surely it may *seem* administratively easier for FC to squeeze out retail lenders like ourselves but if they become too reliant on bulk funding, won't they lose the external/crowd scrutiny that differentiates p2p from banks? If big players like FC don't have retail lenders, then is it not functioning as a quasi-bank but without the red tape/regulation of a bank and therefore unfairly? Jack P Which arm of FC is to get that funding?
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oldgrumpy
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Post by oldgrumpy on Jun 22, 2016 10:16:08 GMT
£100M? Well, I suppose they had to do something, with me pulling out, and all.   |
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fasty
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Post by fasty on Jun 22, 2016 10:26:18 GMT
Well someone's gonna have to fund the loans to freshly A+ rated trumpet-crushers.
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Post by jackpease on Jun 22, 2016 11:32:06 GMT
Which arm of FC is to get that funding? No idea. I knew FC didn't have ears for listening, but i didn't know it had arms.... Do explain! J
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am
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Post by am on Jun 22, 2016 13:29:37 GMT
Which arm of FC is to get that funding? No idea. I knew FC didn't have ears for listening, but i didn't know it had arms.... Do explain! J FC operates in the UK (sterling), US (dollars) and several Eurozone countries (Germany, Holland and Spain, IIRC). I doubt that the European Investment Bank would be lending via the US arm, but it could be lending via the European arm, or both the European and British arms. Lending via the European arm is not competing with us.
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nick
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Post by nick on Jun 23, 2016 15:26:34 GMT
No idea. I knew FC didn't have ears for listening, but i didn't know it had arms.... Do explain! J FC operates in the UK (sterling), US (dollars) and several Eurozone countries (Germany, Holland and Spain, IIRC). I doubt that the European Investment Bank would be lending via the US arm, but it could be lending via the European arm, or both the European and British arms. Lending via the European arm is not competing with us. The EIB will be investing in exactly the same proportions via the SPV. I finally got round to reading the original fund prospectus (zzzzzz..) There is some interesting info in there so its worth a skim through if you find time (http://www.fcincomefund.com/media/1034/pine-valley-dated-prospectus-121115.pdf). I found the infographic below quite stark - the proportion of wholes loans (ie institutional money) rapidly growing from nothing in 1Q14 to just shy of 50% in 2Q15. If the trends continues at this rate, the retail proportion will become very marginal. I'm sure others have analysed the loan book in detail, but the graph was quite striking....  ![]()
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Post by GSV3MIaC on Jun 23, 2016 16:35:19 GMT
This is not really hot news, which is why we all departed (you didn't also hit the fact that much of the 'retail' is actually autobodged grannies, which just might as well be the investment trust for all the DD that gets done).
FC lost interest in all but the biggest of the BHs some considerable time ago.
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Post by Deleted on Jun 25, 2016 23:53:00 GMT
No idea. I knew FC didn't have ears for listening, but i didn't know it had arms.... Do explain! J FC operates in the UK (sterling), US (dollars) and several Eurozone countries (Germany, Holland and Spain, IIRC). I doubt that the European Investment Bank would be lending via the US arm, but it could be lending via the European arm, or both the European and British arms. Lending via the European arm is not competing with us. I very much doubt EIB will invest in/with a UK company after Brexit. Much more likely it will be via the Eurozone countries...
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nick
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Post by nick on Jun 28, 2016 19:14:33 GMT
It will be interesting to see what happens with this. The transaction has already closed so I'm not sure it can be subsequently canned, but its difficult to see any further investment by the EIB. The EIB does have a mandate to invest outside the EU, but its non EU lending objectives are very different.
Interesting to see that the fund itself has held up very well in the carnage. I had expected a marked fall given general expectations of higher credit risk from a tougher UK economic backdrop......
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