nick
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Post by nick on Jun 23, 2016 12:41:06 GMT
I think we shouldn't lose sight that most loans on the platform have a maturity of 12 months or less so lending on the platform is inherently short term. Having a liquid SM is nice to have to allow earlier cash out if there is a unforeseen need for the cash and to help diversify when first investing, but should be less important than for platforms where loan terms are a lot longer. Really we should be happy and prepared to hold these loans for the full term.
I have in the past been fairly active in continually swapping out older loans for newer ones in the belief that if I don't hold a loan to maturity it can't ever default. The recent normalisation of the SM (it was far from normal previously) will make this more difficult, but it has also made me realise that I was taking on far to much concentration risk by tending to hold new loans rather than ones of all maturities. There will be a bigger cost in pursuing such a strategy going forward, ie the liquidity risk of not being able to offload a concentrated position and/or lost interest if/when queuing loans for sale. From now on I'm going to be a lot more diligent over the individual loans I invest in and will only invest if I'm happy to hold to maturity - something I had lost sight off by the previous ultra liquidity of the SM!
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Post by chrisuk on Jun 23, 2016 12:47:13 GMT
/mod hat on
Quit with the Brexit in/out arguing already .. OK? I don't care if it's rhetorical, or whimsical, just don't do it here. Thanks.
/mod hat off
Sorry Mr Mod. I shall go back to staring at the SM and weeping.
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warn
Member of DD Central
Curmudgeon
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Post by warn on Jun 23, 2016 14:09:19 GMT
I plonked a "like" on this, not because it particularly adds anything to the discussion (in which it is in abundant company), but because you didn't type "Here here".
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Post by goldservice on Jun 23, 2016 14:27:40 GMT
I plonked a "like" on this, not because it particularly adds anything to the discussion (in which it is in abundant company), but because you didn't type "Here here". Hear, hear.
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pom
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Post by pom on Jun 23, 2016 15:54:01 GMT
I plonked a "like" on this, not because it particularly adds anything to the discussion (in which it is in abundant company), but because you didn't type "Here here". Hear, hear. ...and "hear, hear" here also
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Post by Deleted on Jun 27, 2016 7:27:21 GMT
Would be good for confidence to see the amount of loans on the secondary market decrease markedly before more new loans are pre-funded.
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hantsowl
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Post by hantsowl on Jun 27, 2016 8:59:51 GMT
Would be good for confidence to see the amount of loans on the secondary market decrease markedly before more new loans are pre-funded. Hopefully this will happen at the end of the week when £1m+ of interest hits user accounts. Providing of course we don't have any new loans come up before then !!
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Investor
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Post by Investor on Jun 28, 2016 11:55:20 GMT
Would be good for confidence to see the amount of loans on the secondary market decrease markedly before more new loans are pre-funded. Hopefully this will happen at the end of the week when £1m+ of interest hits user accounts. Providing of course we don't have any new loans come up before then !! Although anyone switched on will actually not wait until Friday but will start buying today and tomorrow (depending on how far you are willing to push the system) and allow INPL to clear their debt when SS do the interest run on Friday. Anyone waiting until they have done the reconciliation on Friday will have missed out on the better opportunities available at the moment which will have been snapped up now by people who understand the system better.
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sam i am
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Post by sam i am on Jun 28, 2016 20:22:18 GMT
Would be good for confidence to see the amount of loans on the secondary market decrease markedly before more new loans are pre-funded. Hopefully this will happen at the end of the week when £1m+ of interest hits user accounts. Providing of course we don't have any new loans come up before then !! IMHO I don't think this will clear much. We just had £3m repaid from 3 loans that didn't go ahead and the effect on the SM was limited.
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jonah
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Post by jonah on Jun 28, 2016 21:11:54 GMT
Hopefully this will happen at the end of the week when £1m+ of interest hits user accounts. Providing of course we don't have any new loans come up before then !! IMHO I don't think this will clear much. We just had £3m repaid from 3 loans that didn't go ahead and the effect on the SM was limited. The SM is over a million lighter than it was. So another 1/3 or 1/2 million could go from the interest run. I agree it will take a while but assuming no new loans until September (August is usually very quiet as lawyers are on holiday, so if there isn't much in July it could be September before we get somethings) I would expect the SM to move back to famine.
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hantsowl
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Post by hantsowl on Jun 28, 2016 21:19:26 GMT
Hopefully this will happen at the end of the week when £1m+ of interest hits user accounts. Providing of course we don't have any new loans come up before then !! IMHO I don't think this will clear much. We just had £3m repaid from 3 loans that didn't go ahead and the effect on the SM was limited. The real question is how much did that £3m actually free up for reinvestment. For example, PBLs 107 and 109 show £360k and £253k available, but I put a small amount of each up for sale today and both were top of the queue and sold quickly. We have no idea how much of those 3 cancelled loans were with investors and how much was being held by SS.
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Post by GSV3MIaC on Jun 28, 2016 21:49:28 GMT
They were fairly small loans, so I expect rather more than half was allocated to investors, although some may never have funded their share. The SM is down ~£1m from its peak, so clearly =some= has been fed back in (plus maybe some new chums arriving). I admit to mixing and matching - some of the returned cash went on other loans, some went to places where the investment is less property-heavy. When the interest payment comes in, it'll depend what is available.
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boble
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Post by boble on Jun 29, 2016 8:22:07 GMT
The sure fire way to re-energise the SM is for some of the -days loans to be repaid. There are £millions tied up in these!
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goopy
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Post by goopy on Jun 29, 2016 9:01:29 GMT
The sure fire way to re-energise the SM is for some of the -days loans to be repaid. There are £millions tied up in these! The big -days loans, PBL25 + 35 are converting to DFL's. There's not that much in the rest of them.
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boble
Posts: 150
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Post by boble on Jun 29, 2016 9:22:05 GMT
The sure fire way to re-energise the SM is for some of the -days loans to be repaid. There are £millions tied up in these! The big -days loans, PBL25 + 35 are converting to DFL's. There's not that much in the rest of them. My own view is that the conversion of these to DFL's will only serve to exacerbate the position. Time will tell. I suspect that SS will have to hold the bulk of the loan; however, they will be able to comfortably do that.
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