ablender
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Post by ablender on Oct 25, 2016 11:57:16 GMT
I have just received an email from lendingcrowd about this new partnership. I do not know what to do of this news. Does this mean that there will be someone else who would bid large amounts of money to lower the average and kick out individuals off their bids? Does this mean that we will see some transparency applied to the SM? Can some one explain? lendingcrowd perhaps!! |
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adrianc
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Post by adrianc on Oct 25, 2016 12:13:22 GMT
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pauls
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Post by pauls on Oct 25, 2016 12:33:11 GMT
At least it seems there is a (good) future for the platform.
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ablender
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Post by ablender on Oct 25, 2016 12:34:24 GMT
At least it seems there is a (good) future for the platform. I wish I can be so sure about the loans.
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annie
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Post by annie on Oct 25, 2016 20:39:09 GMT
Does this mean that there will be someone else who would bid large amounts of money to lower the average and kick out individuals off their bids? This is my concern too - we need these institutional lenders to take up any shortfall on loans but they shouldn't be allowed in the lower percentiles. We are accepting risk on p2p and that has to be recognized at a fair rate.
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Post by GSV3MIaC on Oct 26, 2016 15:53:17 GMT
/mod hat off.
Depends how it is done - the 'BBB take 10% of everything' (sometime 20%) on FC was only slightly damaging. The institutional BHs throwing £8k bids into particular loans, or (later) taking out 'whole loans' (but only if they fancied them) was a major factor in FC spiralling down the plughole, as far as I am concerned.
At least we don't have people soaking up large chunks at high rates and trying to flip for a profit (mostly because the LC SM is hideous unsuited to that game).
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TheDriver
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Post by TheDriver on Oct 30, 2016 9:02:41 GMT
Does this mean LC are retrenching to Scotland, as the SIB will not be sending finance south of the border? May not be a bad idea, as none of their defaults are (currently) in that area.
Disappointingly, when I tried to book onto one of the SIB seminars linked from the Events page I just got an error.
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TheDriver
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Post by TheDriver on Nov 12, 2016 9:55:10 GMT
Looking at the announcement in more detail raises the following issues:
1. I presume that " . . . . has agreed to invest £2.75m in LendingCrowd." should read "through".
2. If the £2.75m is to stimulate £35m of loans it will represent about 8% participation, similar to the usual 10% BBA on FC
3. £35m is about 5 times LC's loanbook over the last 2 years, much of that outside Scotland, which would suggest a decade-long initiative - an unlikely timescale!
4. 8% of base-rate funding isn't going to help LC much - typically needs more like 80%!, although hopefully (for the platform) some existing large-lenders will continue
5. There's a new big-hitter on the block - Scotch Mist Financier - bidding 20 - 50% of recent Scottish-only loans. Although that seems a major proportion for public funds and their activity began a month before this announcement, there has been no recent sign of another significant investor.
Conspiracy theory or coincidence?
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TheDriver
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Post by TheDriver on Dec 12, 2016 21:00:50 GMT
Well, the bank is certainly getting thru some funds - at this rate it will miss the £35M lending stimulus by some margin, and with 50% funding will barely make it half way to double figures; less than 20% of target!
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