SteveT
Member of DD Central
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Post by SteveT on Oct 31, 2016 10:54:58 GMT
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Post by betterthanworking on Oct 31, 2016 10:58:53 GMT
I expect one of those extremes will have more availability than the other.
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r00lish67
Member of DD Central
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Post by r00lish67 on Oct 31, 2016 11:27:12 GMT
I expect one of those extremes will have more availability than the other. Yep, we'll all be hoovering up those 4.9% (well 3.9% really) A+ unsecured agricultural loans - can't wait. I guess they're raising most of the D+E term rates due to their anticipation of defaults increasing then? Certainly not due to lack of lender demand at current rates!
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adrianc
Member of DD Central
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Post by adrianc on Oct 31, 2016 11:29:42 GMT
Oh, how tempting! I think I might just transfer all the money I've withdrawn recently straight back in!
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jcm9000
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Post by jcm9000 on Oct 31, 2016 11:32:06 GMT
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acky
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Post by acky on Oct 31, 2016 11:32:26 GMT
Oh, how tempting! I think I might just transfer all the money I've withdrawn recently straight back in! Please do .... and buy all the bargain deals I have on the SM! You know you want to!
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jamesc
Member of DD Central
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Post by jamesc on Oct 31, 2016 11:35:09 GMT
I know a lot of people on here don't care for FC but surprised not more reaction as most sites reducing rates and these are significant increases particularly to D & E, whats the implications for the SM for existing loans ? Why are they doing this because the increases are significant in some areas ? Will they really be able to get loans away above 20% except to the most basket cases of basket cases ?
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adrianc
Member of DD Central
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Post by adrianc on Oct 31, 2016 11:43:10 GMT
I know a lot of people on here don't care for FC but surprised not more reaction as most sites reducing rates and these are significant increases particularly to D & E, whats the implications for the SM for existing loans ? Those loans where the new rate would be higher won't be so tempting on the SM. Those loans where it would be lower will sell better. Discount/premium can, of course, be deployed to help sales. I think the most interesting thing is the way this is being sold as being off the back of more accurate loanbook stats. So while we've been whinging that A+/A have been getting riskier, the stats apparently suggest they're overpriced and are safer than we thought. Meanwhile, at the other end, the Es are even more toxic than we were expecting... I wonder what the expected default rate over five years is for those 21.9% return loans...? <holds nose>
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bigfoot12
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Post by bigfoot12 on Oct 31, 2016 11:54:02 GMT
So A+/A/B down, C meh, D/E up. So for in October that would be ~84% of loans lower (~93% size weighted) and 7.5% of loans higher (~4% size weighted). [NB these numbers are approximate I'm not sure if they include today's loans.]
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Oct 31, 2016 12:40:09 GMT
Mmm! Most of AC's upcoming list offers rates similar to FC's new (after 1% fee deduction) A+/A band loans, but with (usually) solid security, plenty of information.
One of AC's recent better risk lower rate (?) has gone bad so far.
I prefer to be with AC than FC these days for mid-rate risk - better recovery prospects overall.
As for FC's idea of what is an A+/A/B risk, I mustn't say what I think of that here - (four letters, anagram of a fish). A B band loan went bad recently after less than one repayment! (Evidence that F band is required?) Lowering rates for FC's quality of risk banding, as well as taking 1% cut out of even the 4.9% deals, is hardly lender friendly.
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acky
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Post by acky on Oct 31, 2016 13:10:44 GMT
6 month "A+" amortising unsecured loan at 4.9% less 1% fee. So I risk £100 of my capital on an unsecured loan with the prospect of making a return of £1.14 over 6 months! Is this some kind of joke?
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Post by Deleted on Oct 31, 2016 13:12:29 GMT
Interesting email, I've read through the comments attached and people are generally p$$$$$d off. I added my own comments to see if FC's other behaviour, kicking complainers off any discussion is actually true. I await there response with interest.
Speaking of interest, I see that management fee element has not been mentioned, so I'm assuming it continues at roughly 15-18%.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
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Post by Neil_P2PBlog on Oct 31, 2016 13:25:15 GMT
Have any personal investors had any luck getting access to the API?
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Post by slumberingaccountant on Oct 31, 2016 13:41:58 GMT
6 month "A+" amortising unsecured loan at 4.9% less 1% fee. So I risk £100 of my capital on an unsecured loan with the prospect of making a return of £1.14 over 6 months! Is this some kind of joke? Quite. After taking a few losses a year back i have switched to property only. Reasonably happy if these remain at 8-10%. cant see why anybody would invest in an unsecured A+/A loan at these rates, its madness. Surely the rates at the low end should be what the market will pay- are FC saying that businesses are not taking up loans because they are too expensive ?
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dandy
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Post by dandy on Oct 31, 2016 13:59:06 GMT
from my very limited understanding, Zopa recently sold securitised about £150m of loans at rates of ~ 2% (1.5% plus libor) - so there must be huge money out there for super prime loans
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