e7
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Post by e7 on Oct 27, 2016 20:04:03 GMT
If I sent my reinvestment rate ar 5% on the rolling market, is likely to b get loaned .
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Post by GSV3MIaC on Oct 27, 2016 20:05:47 GMT
Almost certainly .. the real question is 'WHEN will it get loaned' .. it may hang around for weeks before it goes. Historically rates spiked around 21st of each month, and 5% is not really that high compared to the recent past.
ooops .. i just noticed you said 'rolling', when I was thinking 5-year (or 3 year). Yes, as kev says later, it'll take a LONG time to get 5% lend on rolling, and for just 30 days (or fewer) it isn't worth it to wait for that much.
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e7
Posts: 29
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Post by e7 on Oct 27, 2016 20:26:33 GMT
Thanks for the reply, my last reinvestment was set at market rate and sadly loaned out @2.4% a bit low, any tips on rate setting for reinvestment for maximum rate with little idle time
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pikestaff
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Post by pikestaff on Oct 27, 2016 22:15:59 GMT
Because the rolling market is short term (typically 1 month) the payoff for waiting to get a higher rate is relatively small. If you have to wait more than a day per extra 0.1% you will have lost out. Personally I don't bother. My rolling money is lent at market rate. But it should not be too hard to beat the market by a tenth or two, even allowing for dead time. To get a feel for the market, look at Rate Trends here members.ratesetter.com/ratesetter_info/rate_trends.aspx (link requires you to be logged in) and also follow how the market changes during the day. Rates can be better in the evening. You can also try putting on small amounts at different rates to see what happens. Looking at the weight of money in the market it looks like a lot of lenders think the sweet spot is 3.2%, with £4.5m on offer. Only time will tell whether they are right, but I think it would be a brave person who put their money on any higher than that today.
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jonah
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Post by jonah on Oct 28, 2016 4:48:18 GMT
Or www.ratesetter.com/aboutus/statistics for the stats before logging on. 3.2 was my previous reinvestment rate but it's not gone for a few days. Manually moved rates down but reaching the point where it doesn't provide enough return for my view of the risk.
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Post by westonkevRS on Oct 28, 2016 13:33:08 GMT
If I sent my reinvestment rate ar 5% on the rolling market, is likely to b get loaned . In the rolling at 5%, almost certainly not in the foreseeable future. there's £10m ahead of you in the queue with lower rates. The other fact is that you only get the rate for typically ~30days. so the time you wait to eck out some extra bps is lost by the duration. If you look at typically rates the last year, 3%ish is more realistic. Kevin.
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