jimbob
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Post by jimbob on Oct 26, 2016 14:06:37 GMT
I assume parts still earn interest even when they're marked for sale ?
If so I'll happily leave mine up and just let them sell/pay-down.
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Post by lionelrichtea on Oct 26, 2016 16:51:36 GMT
In 10 days I've had 18 sales with 4 of them coming in the space of one hour today. Make that 8 sales today. Keep buying, whoever you are!
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r00lish67
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Post by r00lish67 on Oct 27, 2016 2:32:04 GMT
I can't match 8, but there's definitely been a flurry hasn't there. Only 57 loans available on the exchange now too, I think that was 64 a few days ago.
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ablender
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Post by ablender on Oct 27, 2016 11:14:07 GMT
I can't match 8, but there's definitely been a flurry hasn't there. Only 57 loans available on the exchange now too, I think that was 64 a few days ago. Yes. In the meantime 3 loans that I am monitoring had their SM values shooting up considerably, namely: M** C*** Ltd S***M***Ltd W**W****Ltd I was getting close to selling my parts. Now there is a larger pool. Will this help or hinder. What happens if new entrants in SM sell their parts before I do? What if in the meantime one of these loans happens to go into default?
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r00lish67
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Post by r00lish67 on Oct 27, 2016 11:25:16 GMT
I can't match 8, but there's definitely been a flurry hasn't there. Only 57 loans available on the exchange now too, I think that was 64 a few days ago. Yes. In the meantime 3 loans that I am monitoring had their SM values shooting up considerably, namely: M** C*** Ltd S***M***Ltd W**W****Ltd I was getting close to selling my parts. Now there is a larger pool. Will this help or hinder? What happens if new entrants in SM sell their parts before I do? What if in the meantime one of these loans happens to go into default? a) Hinder. b) Then you can consider yourself a victim of the opaque SM. c) Then your loan part will be defaulted, and you can consider yourself a victim of the opaque SM or blame yourself for your decision to join LC in the first place, as you prefer
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ablender
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Post by ablender on Oct 27, 2016 11:31:00 GMT
Yes. In the meantime 3 loans that I am monitoring had their SM values shooting up considerably, namely: M** C*** Ltd S***M***Ltd W**W****Ltd I was getting close to selling my parts. Now there is a larger pool. Will this help or hinder? What happens if new entrants in SM sell their parts before I do? What if in the meantime one of these loans happens to go into default? a) Hinder. b) Then you can consider yourself a victim of the opaque SM. c) Then your loan part will be defaulted, and you can consider yourself a victim of the opaque SM or blame yourself for your decision to join LC in the first place, as you prefer Thanks for your replies. re c) I do not think that I will blame myself. I have raised these issues several times here and with LC. I think there is a lot of responsibility which lays straight on LC's shoulders. After all they are the ones who know the ins and outs of their system and how their algorithm works. I am still of the opinion that this is a matter that FCA has to look into.
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KoR_Wraith
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Post by KoR_Wraith on Oct 27, 2016 12:28:44 GMT
I'm selling out as I've now passed the 12 month holding period for the summer cashback bonus.
Miraculously all of my chosen loans are default free and up to date. I considered letting them run the course but I'd only £1000 invested and it's more hassle than its worth to remember to check the account every so often.
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Post by lionelrichtea on Oct 27, 2016 12:32:27 GMT
I've had a couple of sales when there's already been almost £10k available on the loan exchange before the parts were listed. Is it just luck or what?
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adrianc
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Post by adrianc on Oct 27, 2016 13:00:40 GMT
I've had a couple of sales when there's already been almost £10k available on the loan exchange before the parts were listed. Is it just luck or what? Yep. Just luck.
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r00lish67
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Post by r00lish67 on Oct 27, 2016 13:47:30 GMT
I've had a couple of sales when there's already been almost £10k available on the loan exchange before the parts were listed. Is it just luck or what? Yep. Just luck. Aha! I found the highly advanced system diagram LC sent us on another thread, back when they used to talk to us. They also said " Once you list a Loan Part on the Loan Exchange it is immediately available to buy by other investors. There is no FIFO bias or pro rata bias and it is as likely to be bought up by an investor as a Loan Part that had been previously listed.
Now there are a few caveats for this. For instance the Loan Part that is getting purchased is selected from at least three parts that are for sale. Thus even if there is a larger loan part available our system will always have to take bits from other loan parts not just the one larger loan part. In addition to this a minimum of £5 is taken from each of the three Loan Parts. We also never leave a loan part that is worth less then £20 on the Loan Exchange, we did this to prevent many small repayment parts being created. So...yeah, it's just luck is right Edit: I assume the investor is so thin as he's been trying to live off the returns on his LC investments.
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ablender
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Post by ablender on Oct 27, 2016 15:23:44 GMT
Aha! I found the highly advanced system diagram LC sent us on another thread, back when they used to talk to us. They also said " Once you list a Loan Part on the Loan Exchange it is immediately available to buy by other investors. There is no FIFO bias or pro rata bias and it is as likely to be bought up by an investor as a Loan Part that had been previously listed.
Now there are a few caveats for this. For instance the Loan Part that is getting purchased is selected from at least three parts that are for sale. Thus even if there is a larger loan part available our system will always have to take bits from other loan parts not just the one larger loan part. In addition to this a minimum of £5 is taken from each of the three Loan Parts. We also never leave a loan part that is worth less then £20 on the Loan Exchange, we did this to prevent many small repayment parts being created. So...yeah, it's just luck is right Edit: I assume the investor is so thin as he's been trying to live off the returns on his LC investments. Following the reasoning explained here: My parts are less than £20: So should I expect them to fly rather than be stuck in the SM? The diagram quoted above clearly shows how the guy is being offered to buy a loan part of £100 with an interest of 9.99% when if he took all of the £40 @ 11.95% and £60 @ 10.25% he would achieved an overall interest rate of 10.93%. As I understand this diagram the people with very low interest rates are benefitting from this system. And who are these people? The same people who are undercutting everyone on the PM. (Read the various other threads if you are not familiar with what happens.)
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adrianc
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Post by adrianc on Oct 27, 2016 16:22:01 GMT
As I understand this diagram the people with very low interest rates are benefitting from this system. And who are these people? The same people who are undercutting everyone on the PM. They're only benefitting in that it enables them to more quickly get shot of the parts they didn't want. At a cost of 0.5% of the part's value. I can't see how anybody would buy lousy parts on the PM just to take advantage of the SM algorithm.
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Post by GSV3MIaC on Oct 27, 2016 16:54:40 GMT
If they are the platform owner (or related party, or underwriter with a special deal) they get the loan funded at an acceptably low rate, which they can then offload (and the 0.5% comes back to them, one way or another). If the SM was actually a market they'd be stuck with the low rate part(s) forever.
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ablender
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Post by ablender on Oct 27, 2016 17:57:58 GMT
As I understand this diagram the people with very low interest rates are benefitting from this system. And who are these people? The same people who are undercutting everyone on the PM. They're only benefitting in that it enables them to more quickly get shot of the parts they didn't want. At a cost of 0.5% of the part's value. I can't see how anybody would buy lousy parts on the PM just to take advantage of the SM algorithm. Although LC deny it, I am not convinced that this applies to everybody. The reason behind my doubt is the smog screen that LC uses.
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TheDriver
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Slightly bonkers
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Post by TheDriver on Oct 27, 2016 19:14:43 GMT
At a cost of 0.5% of the part's value. Although LC deny it, I am not convinced that this applies to everybody. Why else would parts be listed on the LE as soon as they are released? It would cost most of us more than we would have gained in interest to sell anything in the first couple of weeks or so! Thus there must be someone participating with a different agenda to the majority of us.
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