boble
Posts: 150 
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Post by boble on Jun 22, 2016 20:38:57 GMT
Until a few days ago, I was able to use SS pretty much as a one day notice deposit account, which has been great as my business sometimes demands short notice access to significant funds. I have now had to rethink this, as currently quick sales on the SM can't be relied on; the net result of which is that I won't be able to invest as much on the platform. For now at least, the platform has a completely opposite form of illiquidity than that experienced by many of us over the last few months. Hopefully, the liquidity on the platform will eventually mature into a reasonably consistent level.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 22, 2016 20:51:56 GMT
Until a few days ago, I was able to use SS pretty much as a one day notice deposit account, which has been great as my business sometimes demands short notice access to significant funds. I have now had to rethink this, as currently quick sales on the SM cant be relied on, the net result of which is that I won't be able to invest as much on the platform. For now at least, the platform has a completely opposite form of liquidity than that experienced by many of us over the last few months. Hopefully, the liquidity on the platform eventually mature into a reasonably consistent level. Sorry, but you simply shouldn't view SS as an instant savings account regardless of whether or not the SM is liquid. Don't get me wrong, it's nice when the SM is liquid, but at the flip of a coin it can (and has and will again) turn static, and as such, you should invest in the platform (and each individual loan) with the view that the SM is static... or better yet that it doesn't exist. Don't invest in SS if you need quick access to your money. If you do, Santander 123 is best suited to your needs 
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boble
Posts: 150
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Post by boble on Jun 22, 2016 21:40:54 GMT
Until a few days ago, I was able to use SS pretty much as a one day notice deposit account, which has been great as my business sometimes demands short notice access to significant funds. I have now had to rethink this, as currently quick sales on the SM cant be relied on, the net result of which is that I won't be able to invest as much on the platform. For now at least, the platform has a completely opposite form of liquidity than that experienced by many of us over the last few months. Hopefully, the liquidity on the platform eventually mature into a reasonably consistent level. Sorry, but you simply shouldn't view SS as an instant savings account regardless of whether or not the SM is liquid. Don't get me wrong, it's nice when the SM is liquid, but at the flip of a coin it can (and has and will again) turn static, and as such, you should invest in the platform (and each individual loan) with the view that the SM is static... or better yet that it doesn't exist. Don't invest in SS if you need quick access to your money. If you do, Santander 123 is best suited to your needs I'll consider myself told off, however, the amounts I sometimes need quick access to reprisent only between 5% and 10% of my total investment, which overall increases with frequent regularity.
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Post by gent2012 on Jun 22, 2016 21:51:06 GMT
A valid point, but the platform has to acknowledge the laws of supply and demand. By warning of the release of 9 loans valued at over £12m, the secondary market seems to have released funds to accommodate. We now have several million available, with some loans having such high amounts for sale that they are unlikely to be cleared for weeks.
Even as someone who limits my funds in each loan, there's no point putting old loans up for sale when they'll stop earning interest immediately and could take a month or so to sell. So I won't invest in new loans until my funds are likely to come available - I'm in no hurry to sell but like many, I suspect, I have a limit to how much cash I can commit. So, for slightly different reasons than the OP, I've changed my perspective towards SS.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 22, 2016 21:51:32 GMT
Sorry, but you simply shouldn't view SS as an instant savings account regardless of whether or not the SM is liquid. Don't get me wrong, it's nice when the SM is liquid, but at the flip of a coin it can (and has and will again) turn static, and as such, you should invest in the platform (and each individual loan) with the view that the SM is static... or better yet that it doesn't exist. Don't invest in SS if you need quick access to your money. If you do, Santander 123 is best suited to your needs I'll consider myself told off, however, the amounts I sometimes need quick access to reprisent only between 5% and 10% of my total investment, which overall increases with frequent regularity. Maybe I was a tad harsh; I certainly didn't intend on " telling you off" .It's your capital, and you know what you can risk, and how much you need day to day. My point is that with SS you should invest with the mindset that accessing your money early may be hard in the event that the SM is static, and as such you should only invest what you won't need quick access to.
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boble
Posts: 150
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Post by boble on Jun 22, 2016 22:00:41 GMT
I'll consider myself told off, however, the amounts I sometimes need quick access to reprisent only between 5% and 10% of my total investment, which overall increases with frequent regularity. Maybe I was a tad harsh; I certainly didn't intend on " telling you off" .It's your capital, and you know what you can risk, and how much you need day to day. My point is that with SS you should invest with the mindset that accessing your money early may be hard in the event that the SM is static, and as such you should only invest what you won't need quick access to. I agree, and that was the point of my original comment. I will now have to hold funds back, which would otherwise have nestled from time to time in SS.
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treeman
Member of DD Central
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Post by treeman on Jun 22, 2016 22:04:07 GMT
I've always wondered if the midnight SM spike was largely people maxing returns on 'short-term' investments - quite tempting when everything and anything was snapped up in double quick time .........
Recent events and platform changes have made for a rather different environment.
No doubt many are having a bit of a re-think of their whole SS strategies !
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boble
Posts: 150
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Post by boble on Jun 22, 2016 22:08:39 GMT
A valid point, but the platform has to acknowledge the laws of supply and demand. By warning of the release of 9 loans valued at over £12m, the secondary market seems to have released funds to accommodate. We now have several million available, with some loans having such high amounts for sale that they are unlikely to be cleared for weeks. Even as someone who limits my funds in each loan, there's no point putting old loans up for sale when they'll stop earning interest immediately and could take a month or so to sell. So I won't invest in new loans until my funds are likely to come available - I'm in no hurry to sell but like many, I suspect, I have a limit to how much cash I can commit. So, for slightly different reasons than the OP, I've changed my perspective towards SS. I certainly agree with your point about placing part loans on the SM when there is little to no prospect of an early sale. The platform is a moving feast and no doubt many of us will need to revise our SS investment strategies accordingly.
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Post by chrisuk on Jun 22, 2016 23:38:06 GMT
I too have reached my investment limit and will not be investing any more money until I can sell my older loans. I never expected the SM to be 'liquid' all of the time, but I never expected it to 'dam up' either. Shame really.
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NSFW
Posts: 118
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Post by NSFW on Jun 22, 2016 23:50:58 GMT
Hasn't worked out too badly for me as I've been able to sell parts of existing loans and end up with equal amounts in each loan, plus invested in new ones and older ones that used to disappear or not appear on the SM at all. Just waiting on 3 parts to sell now and I'm sorted.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 22, 2016 23:55:14 GMT
I too have reached my investment limit and will not be investing any more money until I can sell my older loans. I never expected the SM to be 'liquid' all of the time, but I never expected it to 'dam up' either. Shame really. I wonder if you see the Catch-22 situation that SS have now gotten themselves into? Current & new investors are perhaps avoiding SS because they see that the liquidity has now gone, but ironically SS need those investments for the SM to become more liquid...
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tombraider
Member of DD Central
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Post by tombraider on Jun 23, 2016 0:15:12 GMT
I was hoping that the loan repayments would balance loan releases to stop the static loan amounts eg the farmland tranches but looks like the 5 million due to repay has been put back so we may well have a static SM for a while.... In time when loans are released at a similar rate to being paid off hopeful the fluidity will return where the older loans can be sold. Until then it's time to hold tight and unfortunately I'll not be able to pre fund.....
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Post by bluechip on Jun 23, 2016 0:25:20 GMT
I'm looking forward to some mergers in this sector. It's annoying having to move money between platforms to catch the "hot" one, or as the OP says having to constantly be on the ball with changes happening with platforms almost over night, which makes you have to adjust your short/medium term strategy. Assetz has a lot of people moving their funds out at the minute, in a few weeks it will probably be winging it's way back over (or not). The SM chocker block on SS, in a few weeks it will be back to screaming at the stupid picture game. It's all to be expecting in a new-ish sector of course, but it will be good for us investors when we can have some sort of reliability/consistency. It's all very ad-hoc and reactive at the minute with the higher interest platforms, which suits some people, but I'm spending too much of my time managing multiple platforms now. Not bitching really, but I share empathy with Boble. I have so many thousands in the ether at the minute, all of which is not gaining interest, chasing deals like a kid playing kiss chase! God help us if we go on holiday for a few weeks  ! |
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mack
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Post by mack on Jun 23, 2016 6:28:54 GMT
I did mention it changes the dynamics and the London loans were too large and would change the platform.
Whilst not advertised Saving Stream themselves were happy it was a sellers market and it actually encouraged the growth. Surprised they did not realise the liquidity was actually a key feature and should be encouraged. With a flowing pipe line anyone can get invested and diversified over time.
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archie
Posts: 1,838
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Post by archie on Jun 23, 2016 7:15:24 GMT
A valid point, but the platform has to acknowledge the laws of supply and demand. By warning of the release of 9 loans valued at over £12m, the secondary market seems to have released funds to accommodate. We now have several million available, with some loans having such high amounts for sale that they are unlikely to be cleared for weeks. Even as someone who limits my funds in each loan, there's no point putting old loans up for sale when they'll stop earning interest immediately and could take a month or so to sell. So I won't invest in new loans until my funds are likely to come available - I'm in no hurry to sell but like many, I suspect, I have a limit to how much cash I can commit. So, for slightly different reasons than the OP, I've changed my perspective towards SS. I certainly agree with your point about placing part loans on the SM when there is little to no prospect of an early sale. The platform is a moving feast and no doubt many of us will need to revise our SS investment strategies accordingly. It's not always clear whether a loan will sell quickly unless you try it. Lender sale parts are queued before SS sales so the real queue (for the newer underfunded loans) might be a lot shorter than it initially appears. I've placed a few trial sales on the market then looked at where they are in the queue, easy to cancel the sale if the queue really is large. It might also be useful if they showed a total sold for each loan in the previous 24 hours.
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