ali
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Post by ali on Sept 13, 2016 17:37:04 GMT
So, invoices MJC-2819/2820/2821 were insufficiently funded. What does that mean (apart from the obvious!). Do we get another chance to add more money (I'll have some more cash available in the morning, perhaps others are in the same position)? If not, can I use the money currently tied up in this for invoice 4401 whose auction ends around lunch time tomorrow?
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Post by buttchopf23 on Sept 14, 2016 6:38:46 GMT
first investly will try to extend the auction, but that's up to the customer. if it's not Extended, the funds will then be released, but up until then, your funds are blocked (as are mine)...
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ali
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Post by ali on Sept 14, 2016 6:47:06 GMT
first investly will try to extend the auction, but that's up to the customer. if it's not Extended, the funds will then be released, but up until then, your funds are blocked (as are mine)... Many thanks. Much appreciated.
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Post by buttchopf23 on Sept 14, 2016 7:06:32 GMT
you're welcome
the invoice auction has now been extended for 24hours, hopefully we can fund the invoice with a reasonable interest rate.
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ali
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Post by ali on Sept 14, 2016 7:10:20 GMT
you're welcome
the invoice auction has now been extended for 24hours, hopefully we can fund the invoice with a reasonable interest rate. Yes indeed. I've transferred a (little bit) more money into Investly ready to make my small contribution.
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Post by buttchopf23 on Sept 14, 2016 9:41:41 GMT
and going down... if there is no better opportunity I will withdraw my funds and invest it in saving stream.
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ali
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Post by ali on Sept 14, 2016 9:45:21 GMT
and going down... if there is no better opportunity I will withdraw my funds and invest it in saving stream. I'm hoping there are going to be a number of other invoices in the next few days. Time will tell...
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Post by buttchopf23 on Sept 14, 2016 9:58:45 GMT
Me too, but I'm not convinced this would help at all. I guess it would attract more funds and rates go down..
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ali
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Post by ali on Sept 14, 2016 10:35:21 GMT
Me too, but I'm not convinced this would help at all. I guess it would attract more funds and rates go down.. Well, rates would stabilise. What's happening at present is people are worried that they will have cash sitting on the platform earning nothing and so want to get it lent, almost at any rate. If we could have confidence that another auction was always just around the corner then I think people would be more prepared to say: "That's too low, I'll wait for the next one". What level the rates will eventually settle at is a much harder question, of course.
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Post by buttchopf23 on Sept 14, 2016 12:00:28 GMT
For an example you can check the eur invoice situation. There is too much liquidity and although volumes are increasing, most auctions go well below 10%.
I hope my prognosis is wrong on this.
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ali
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Post by ali on Sept 14, 2016 12:26:57 GMT
For an example you can check the eur invoice situation. There is too much liquidity and although volumes are increasing, most auctions go well below 10%. I hope my prognosis is wrong on this. gpwm. If it goes the same way, I'll either be picking up the occasional outlier or have decided it's not worth the effort. Edit: One little complication. I see that some of the EUR invoices have a PD of 1% which would make sub-10% invoices more attractive. I'll have to do some calculations should such an invoice be offered in GBP.
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Post by buttchopf23 on Sept 14, 2016 15:05:42 GMT
Would be appreciated if you could share your calcs once finished. Thanks
Btw, it seems that there is no difference in risk assumed in the eur invoices by the investors. You can see 1%pd invoices going for 10%, 8%pd for 8% etc... it seems money has to be invested at any cost and risk.
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ali
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Post by ali on Sept 14, 2016 22:15:39 GMT
Would be appreciated if you could share your calcs once finished. Thanks Btw, it seems that there is no difference in risk assumed in the eur invoices by the investors. You can see 1%pd invoices going for 10%, 8%pd for 8% etc... it seems money has to be invested at any cost and risk. I've put together a spreadsheet to play with the various parameters and see what the effect on the yield would be. Please note that this is full of assumptions, many of which I've just made up and could give completely the wrong impression. No guarantees about my maths, either. If kristjan wants to put me straight on anything, I'm all ears: yield.ods (49.77 KB) I was surprised how little difference to the yield the default rate makes. Perhaps our European friends are more clued up than we had thought.
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Post by kristjan on Sept 16, 2016 9:10:40 GMT
I'll have a look at your table in a few days. I've done some data analysis as well and concluded that the auction close rate is most closely linked to the size of the invoice. Currently we are working on a new version of our website but once that is live (late autumn), we will start work on improving the autobidder (which will allow to use the rating as a filtering agent). All of your comments and improvement suggestions are welcome, of course.
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Post by kristjan on Sept 21, 2016 6:24:12 GMT
I tried opening it, but Excel said it was unrecoverable content (i.e. unreadable). Just by glancing at the recent auction data, though, it is clear there is lots of money in search of yield and this has pushed a lot of auctions to close at 8%. We've also signed up a lot of new customers (8 new customers have sold their invoice this month). The recent increase in available invoices has been larger than the increase in investor funds, which is a positive sign for investors looking for higher yields going forward.
When analysing the bids across insolvency probabilities and credit ratings, it makes more sense to look at the debtors' rates first and only then the sellers' rates. The seller's rate is important for recovery in case of a default and recourse.
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