Greenwood2
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Post by Greenwood2 on Jan 22, 2017 8:30:12 GMT
I found the original discussion about how the rates are defined, I don't know how to link to it but it starts at the second post on the 'Investment Performance - targetting 7.0%...' thread. In the third post (Jul 27th 2016) Steve Findlay replies to me explaining the rates as I described above (and there is further discussion). I don't know if anything has changed since then, clarification from Steve would be helpful.
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Post by wickedxuk on Jan 22, 2017 8:39:49 GMT
I found the original discussion about how the rates are defined, I don't know how to link to it but it starts at the second post on the 'Investment Performance - targetting 7.0%...' thread. In the third post (Jul 27th 2016) Steve Findlay replies to me explaining the rates as I described above (and there is further discussion). I don't know if anything has changed since then, clarification from Steve would be helpful. You mean this post: Greenwood2 I've started with some screenshots and descriptions first, to hopefully make things clearer: Rate on Detailed Loan TablesThis is the Gross interest rate paid by the Borrower. This is displayed to give an indication of the underlying credit risk. As the note says, it is before any Third Party Platform fees. We have received a separate request from another to add a column with the rate net of Third Party Platform fees - and we will do this. Rate on Summary DashboardIn the centre of your summary dashboard there is a "currently earning" rate: This is an estimation of the current net return you are earning across your investments (before accounting for our 1.0% fee and your tax), based on the weighted average of the interest rates net of any Third Party Platform fees. Accrued interest in your Returns statementThis is the interest that is due to you, net of third party platform fees, across all of your investments, since the last loan repayment date for each loan - each loan will repay on different days in the month, but most will repay something in the month (only a very few have interest rolled-up). This is an estimate, but is a good proxy for amounts that should convert into "Paid interest" for the period you have held each investment to date. Your questions
Hopefully (1) and (2) are covered by the above. Please let me know if not. Re (3) - for losses, from the outset, we modelled 0.5% to 2.0% (based on the type of loan); but we have seen less than 0.03% losses to date (and even this small amount is still in recovery). Third Party fees: these are accounted for in the headline figure. Four platforms out of 20 that we currently use charge investor-sided fees. In most cases these are 0.5-2.0%; but the largest fees are with MarketInvoice ( see page 12 of their Investor FAQs pdf). We consider Third Party Fees a zero-sum-game though, as those with higher fees for the investors are generally delivering higher interest rates (for comparable credit) to the investors. You are correct it does say weighted average. stevefindlay can you clarify as we seem to have conflicting information on what the headline rate is. Personally, it should always be a weighted average. Otherwise it is meaningless.
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Greenwood2
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Post by Greenwood2 on Jan 22, 2017 8:45:20 GMT
Also importantly after 3rd party platform fees, so only BM fees need to be taken off the headline rate.
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Post by stevefindlay on Jan 23, 2017 20:40:09 GMT
To clarify:
1. The headline rate on your summary dashboard is an average of the rates on your loans after third party platform fees. But before the 1% BondMason fee.
2. The loan rates on your long loan list are before third party platform fees (and our fees). This is so you can see the headline risk on each loan.
We are currently developing both of these pages, with improvements being rolled out over the next few weeks. So you'll start to see some changes. All aimed at improving visibility of your performance etc.
Please head over to the 'BondMason would be better if...' thread to add any suggestions. As ever, all comments gratefully received!
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Greenwood2
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Post by Greenwood2 on Jan 23, 2017 20:51:18 GMT
Is 1. the weighted average or a simple average?
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Post by wickedxuk on Jan 23, 2017 21:19:19 GMT
Is 1. the weighted average or a simple average? In case he doesn't see this thread again without a tag stevefindlay
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Post by stevefindlay on Jan 23, 2017 21:40:54 GMT
Is 1. the weighted average or a simple average? In case he doesn't see this thread again without a tag stevefindlayShould be weighted average.
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Post by wickedxuk on Jan 23, 2017 21:58:09 GMT
In case he doesn't see this thread again without a tag stevefindlayShould be weighted average. Should be or is? I asked over email and got simple average as the answer...Sorry to be awkward but on my (wifes) account as I've drip fed and the % investment amount structure you use has varied the investment amounts over my investments at different rates throughout. Sour the results would actually be very different.
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Liz
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Post by Liz on Jan 23, 2017 23:18:30 GMT
Should be weighted average. Should be or is? I asked over email and got simple average as the answer...Sorry to be awkward but on my (wifes) account as I've drip fed and the % investment amount structure you use has varied the investment amounts over my investments at different rates throughout. Sour the results would actually be very different. Somebody bang the figures into a spreadsheet, then we will know for sure. Easily done, I do it to get a weighted average return on another platform that doesn;t provide any statistics.
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Greenwood2
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Post by Greenwood2 on Jan 24, 2017 6:48:26 GMT
You actually can't check it because we don't know the individual platform fees which are taken off in the headline figure, but are included in the individual rates.
Edit: This is one reason I queried the definition of the rates in the first place. I couldn't get figures to agree whatever I did.
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Post by stevefindlay on Jan 24, 2017 8:24:23 GMT
I will double check with the tech team this morning - it will be weighted average (if it isn't already).
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oldgrumpy
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Post by oldgrumpy on Jan 24, 2017 14:47:35 GMT
Big move today raises my deployed cash to 98.7% , and that was just after I placed another £300 in my account. Very good BM - keep it above 96% consistently from now on and I might stop being grumpy (with you).
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jan 24, 2017 16:55:25 GMT
Nothing since 19/1 for me. Stuck at 50%.
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oldgrumpy
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Post by oldgrumpy on Jan 24, 2017 17:08:01 GMT
Nothing since 19/1 for me. Stuck at 50%. I'm totally bemused by the allocation "algorithms". Can't understand why I got some on 20th and 24th so I went 91.4% >> 96.7% >> 98.7% but you didn't move. Is it because I am still under £10K invested I wonder. (edit: ah, but before that I'd had nothing since 13th)
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adrianc
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Post by adrianc on Jan 24, 2017 17:30:59 GMT
Nothing since 19/1 for me. Stuck at 50%. I'm totally bemused by the allocation "algorithms". Can't understand why I got some on 20th and 24th so I went 91.4% >> 96.7% >> 98.7% but you didn't move. Is it because I am still under £10K invested I wonder. (edit: ah, but before that I'd had nothing since 13th) Nothing here since seven allocations on the 20th - now at 66%.
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