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Post by closetotheedge on Oct 10, 2016 8:39:33 GMT
Thank you to all of the contributors to this thread over the last week. The indignation has been very entertaining. I too have many suspicions but mine are mostly about grip on reality that some RS users seem to have.
I use the 5 year along with the rolling/monthly. Strangely enough I put money I am happy to tie in for 5 years in the 5 year option and money I may want sooner in the rolling/monthly option. I never used the 3 year option as the demand seemed very low so I considered the wait to lend too long. I think this low demand from borrowers might have been the actual reason for its demise but this would obviously ruin the conspiracy theories.
Just my opinion but I can see very little reason why financial institutions of any kind should provide access at all to investments made for a set period. Perhaps in the event of say serious/terminal illness or injuries which give rise to the need for access to funds otherwise not required. This however could be dealt with on a case by case basis by written communication.
Anyway back to the conspiracy theorists........
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Post by jackpease on Oct 10, 2016 9:08:49 GMT
Anyway back to the conspiracy theorists........ Indeed - I definitely think that there's a conspiracy - Ratesetter wants to make profit - outrageous - it's only us investors that are supposed to make a profit... More seriously, it is not clear how a buyout formula could be transparent given it must react to changing future rates. Jack P
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alender
Member of DD Central
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Post by alender on Oct 10, 2016 9:41:13 GMT
Anyway back to the conspiracy theorists........ Wow, who would have thought that RS investors expect the sell out rules of their contracts should be the rules that were in place when that they took out the contracts and the rules for sell out are clearly explained, it is all a conspiracy!
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Post by ruralres66 on Oct 10, 2016 9:55:18 GMT
Anyway back to the conspiracy theorists........ Wow, who would have thought that RS investors expect that the sell out rules of their contacts should be the rules that were in place when that they took out the contracts and the rules for sell out are clearly explained, it is all a conspiracy! I think you are missing the point, there is not necessarily an expectation that "the sell out rules of their contacts should be the rules that were in place when that they took out the contracts"- not at all!
I suggest that as the business RS develops and evolves, there comes a point where the old rules are more a hindrance (to all) than an asset. If you don't fully understand the rules in the first place, or at a current point, you can't show due diligence in your decision making- because you lack confidence in the model and exercise caution or withdrawal. That was the position I found myself in, in August and I knowingly took the hit, and I moved on.........
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alender
Member of DD Central
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Post by alender on Oct 10, 2016 10:11:45 GMT
The point as I see it is that when you take out a contract it is based on a set of rules, those rules should not be changed except with the agreement of all parties. RS can change the rules but only for new contracts, no investor should take a hit because RS retrospectively changed the rules.
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Post by misotu on Oct 10, 2016 12:42:15 GMT
Anyway back to the conspiracy theorists........ Indeed - I definitely think that there's a conspiracy - Ratesetter wants to make profit - outrageous - it's only us investors that are supposed to make a profit... More seriously, it is not clear how a buyout formula could be transparent given it must react to changing future rates. Jack P No-one objects to RS making a profit. That would be silly, wouldn't it Jack? I'm not sure why you think buyout formula transparency is a problem. When you choose the sellout option, a charge is calculated comprising fees and interest clawback. Asking for a detailed statement at that point, showing how the figure is reached, including the interest rates used and the dates over which said rates have been applied, is hardly unreasonable, is it? And it's perfectly practical. There is obviously a problem here when RS state that "average" rates are calculated for sellout in an email that links to a blog stating that a "snapshot" rate will be used. There's obviously a problem when they give the impression that selling 5-year money after 4 years would be based on the 3-year rate but then in response to a direct written question say in fact it'll be 75% 3-year and 25% 1-year rate. Wanting clarity, consistency and transparency hardly equates to objecting to RS making a profit, does it now?
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warn
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Curmudgeon
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Post by warn on Oct 10, 2016 15:07:57 GMT
...it is not clear how a buyout formula could be transparent given it must react to changing future rates. I'm not sure that the formula itself would necessarily change as rates change -- just the daily variable inputs to the formula. Perhaps RS could publish the probably lengthy and complex (pseudo-)code for the formula. That could have the dual positive effects both of demonstrating complete transparency, and also of shutting everyone up while they attempted to build a tracking spreadsheet. Win-win.
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Investboy
Member of DD Central
Trying to recover from P2P revolution
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Post by Investboy on Oct 11, 2016 12:30:24 GMT
Oh... if only RS had SM...
I guess there will be plenty of people to buy ones 5yr contracts at the past (6.5+% rates) even paying the premium so the seller would not loose out but could even gain.
My dream continues...
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Post by ruralres66 on Oct 11, 2016 12:33:21 GMT
Sorry to be ignorant, but what is SM?
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Post by westonkevRS on Oct 11, 2016 12:33:30 GMT
Oh... if only RS had SM... I guess there will be plenty of people to buy ones 5yr contracts at the past (6.5+% rates) even paying the premium so the seller would not loose out but could even gain. My dream continues... You can't have them, first dibs on sell-out is one of the few employee lender benefits....
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registerme
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Post by registerme on Oct 11, 2016 14:08:58 GMT
Sorry to be ignorant, but what is SM? Typically used to refer to a "secondary market" a la most other platforms (but to be fair, not, I think, Zopa, which is the most directly comparable with RS).
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Post by ruralres66 on Oct 11, 2016 14:27:11 GMT
Thanks! I obviously have so much to learn not being involved with others save RS and Zopa!
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