A proposal to help liquidity on the SM

SS claims it goes into the provision fund. I would be happy with discounts so that people that want to sell can. Rather then people that buy more then they want hold for  alittle bit and then sell it on.

Before thinking about ways to add liquidity, maybe we need to look at what's on the SM and why.

Firstly, why is there so much on the SM?
I'd have thought by not accruing any interest this would have discouraged investors putting loans up for sale, especially where there's a long queue and relatively little movement. In fact by leaving these stuck on the queue we are in fact adding to the illiquidity.

So why is it there? Possible options include (but not limited to)
Investors have over-stretched. Until recently prefunding was somewhat of a game and I'm sure some people got horribly stung.
Worries about the economy. I think we all know what I'm talking about. Where is George anyway?
Worries about the platform. *cough* Garden centre *cough*.
Supply outstriping demand. 9 london properties, hints at big things coming next week.
Numerous payments due. Hints at things coming next week...
The new seven day rule. Possibly forcing a clear out of older loans.
People are unaware about the non-interest. I see in another thread there's a discussion about this very point. Warning message seems clear to me. You don't.

Second question to consider is in who's interest is it to get the market moving. I remember only a month ago when people on this forum were moaning about the SM being barren (yes, I was probably one of them), that would have been a big hinderance to attract new investors and so SS must be relatively comfortable with the current situation. And to immediately contradict myself, having a highly liquid market was surely a good USP for SS. 

Next, what should be considered as an appropriate sale time for a loan. Sure its nice when you can offload in seconds, but the flip side of this is the inability to buy stuff that you want.

So then, suggestions about actions. Its been mentioned about discounts - I can see the attraction, but if people are genuinely worried about extending their commitments at the moment are they going to change their mind for just a small percentage? On another site I've seen stuff with the discount applied effectively just acting as a mechanism to push up the sale queue, isn't this kind of devaluation going to mean that eventually you'd only ever be able to sell if you gave a discount. With all loans at the same interest rate the incentive to buy a loan at full price isn't as attractive as a discounted one.

Maybe some kind of buyback scheme from SS, whereby they would purchase the loan back at either a fixed discounted price or at the sacrifice of all outstanding interest? I haven't done my sums here, or have any idea about the financial practicality from SS perspective (I doubt they would be too pleased if they had to buy back the whole of the current SM - actually thinking about it, this is a silly idea)

SS subterfuge. If "someone" were to buy all the loan parts and slowly release them back onto the market in drips and drabs we investors might then beleive that the market is liquid again, regain confidence, and carry on as before. Again, I don't know anything about the financial feasibility of this (legal or moral for that matter). 

Well that was a longer post than I intended. I was originally just going to post "dunno" 

I think the main reason is indigestion from the £12m of London property loans, only £8m or so of which were soaked up by loose capital .. and (here I go again) with no balancing mechanism, the SM is only stable in two states - 'impossible to buy' or 'impossible to sell' .. we flipped to the second state (and once people figured that out, they added more to the queues, since they were probably overweight in many loans on the assumption they could 'fix it later'). Some folks have indeed been under the illusion that they could extract their cash whenever they needed it, and are now trying to make it so (with limited success). SS adding new loans, and releasing unpaid-for parts (from the overhang on the £12m) just adds to the problem (or apparent problem, since the SS parts are not really in the queue, although they look like they are).

At least with selling you CAN sit in an orderly queue (with buying it was FFF stampede .. imagine if selling was equally convoluted).

I agree. SS was inconsiderate at best in placing 9 heavy London loans all at once.
The money side suffered a lot and new joiners are still slowly buying the reamaining parts of it, letting the rest a bit underfunded. To this add the Brexit and the fear sent out to many and here we are.

Nothing on the supply price will ever help this moving.
The only solution is to have more money coming in (i.e. new joiners) and wait wait wait a bit before releasing anything else on the primary market.
Put every new deal on hold for two weeks and things will improve a lot on the SM (specially if a repayment or two finally materialise).

Oh, i don't know about nothing helping - I suspect a 5% cashback on new funds would fix the problem right smartly. 8>. Would get some from me, at least.

I think the present massive liquidity comes about when a bunch of sheep have a nasty shock. Anyone who has driven behind an animal transporter knows exactly what i mean.

Soon they will calm down and move on.

The parenthesis of those comments on this P2P board are factually incorrect.

I have taken the time to go back and review the previous posts made by Saving Stream;

p2pindependentforum.com/user/143/recent?page=3

I quote the following, as well as highlighting and underlining the relevant section;