metoo
Member of DD Central
Posts: 540
Likes: 410
|
Post by metoo on Jun 10, 2017 14:40:39 GMT
On the other hand, I'm quite happy getting double interest¹ while Collateral sort it out. Long may it continue ¹ More precisely, interest on £2x capital while only £x capital is at risk of borrower default (£2x capital is still at risk of platform failure). The COLL money should be held in a ring-fenced client account until legals are completed, so should not be at risk of platform failure until the loan is drawn down. Payment of interest would be at risk.
|
|
ali
Member of DD Central
Posts: 313
Likes: 311
|
Post by ali on Jun 10, 2017 15:02:09 GMT
On the other hand, I'm quite happy getting double interest¹ while Collateral sort it out. Long may it continue ¹ More precisely, interest on £2x capital while only £x capital is at risk of borrower default (£2x capital is still at risk of platform failure). The COLL money should be held in a ring-fenced client account until legals are completed, so should not be at risk of platform default until the loan is drawn down. Payment of interest would be at risk. The risk of platform failure is very small, but real. As you say, the money should be in a client account. However, there is always the possibility that it isn't, that COL are hacked and the money stolen, that a spear attack tricks an authorised signature to transfer the money to a thief's bank account, etc. And. yes, you're right in that the risk of losing the accrued "interest" from COL is higher since if COL were to fold we would (I believe) be unsecured creditors. These risks are small enough that I neglected them when deciding to fund the COL side of the loan from my cash pot rather than my p2p pot and I only mentioned them for completeness.
|
|
|
Post by elephantrosie on Jun 12, 2017 18:09:00 GMT
On the other hand, I'm quite happy getting double interest¹ while Collateral sort it out. Long may it continue ¹ More precisely, interest on £2x capital while only £x capital is at risk of borrower default (£2x capital is still at risk of platform failure). is thats how you feel, then you should purchase more of the loans off SM on both MT and collateral. teach me why if you have 2x quids capital invested, only x quids is in risk of borrower default? what do you mean?
|
|
|
Post by trentenders on Jun 12, 2017 18:14:56 GMT
Someone just bought all of my Bolton...
|
|
ali
Member of DD Central
Posts: 313
Likes: 311
|
Post by ali on Jun 12, 2017 18:29:29 GMT
On the other hand, I'm quite happy getting double interest¹ while Collateral sort it out. Long may it continue ¹ More precisely, interest on £2x capital while only £x capital is at risk of borrower default (£2x capital is still at risk of platform failure). is thats how you feel, then you should purchase more of the loans off SM on both MT and collateral. teach me why if you have 2x quids capital invested, only x quids is in risk of borrower default? what do you mean? I don't know why you think I should purchase more than I already have and am happy with. I have £x invested in this loan with MT and £x invested with COL (£2x total). What might happen? 1) The loan defaults at MT before COL pays them what MT are owed. COL obviously decides not to proceed and repays all its lenders. Net result: £x of my capital is potentially lost (the £x invested at MT). 2) COL decides not to proceed for it's own reasons and repays all its lenders. Net result: £x of my capital is at risk at MT. 3) COL pays MT what they are owed (the loan draws down) and MT repay all its lenders. Some time later the loan defaults. Net result: £x of my capital is potentially lost (the £x invested at COL). There may be a flaw in my logic, but I can't find it.
|
|
|
Post by elephantrosie on Jun 13, 2017 1:17:08 GMT
Sorry. When you typed 2x, i thought you meant 20 odd quids.
|
|
star dust
Member of DD Central
Posts: 2,998
Likes: 3,531
|
Post by star dust on Jun 13, 2017 7:01:52 GMT
Sorry. When you typed 2x, i thought you meant 20 odd quids. I don't think it should make any difference whether it was £2; £20; £200; £20,000 or any other (actual) amount. If a person has an amount of a loan part they are comfortable with - that is they have assessed the risk reward element and feel they have the right amount for their appetite an amount they could hold to term if necessary and it wouldn't be the end of their world if there were an unfortunate 100% loss of their capital - then they should stick with it. Too often people succumb to the temptation to hold more - as a temporary cash deposit or a quick cash- back or higher interest rate offer, and risk getting caught out. Plumbers (sorry for the AC reference that maybe not all will 'get') and illiquid SMs come to mind. I have been guilty myself of holding 'too much' on occasion, luckily I haven't got caught out yet, but it is something I generally try to avoid.
|
|
|
Post by lendinglawyer on Jun 20, 2017 15:07:18 GMT
COL loan has now drawn down, so should repay very soon I would think...
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Jun 20, 2017 15:21:36 GMT
Yes, today I'd expect. Nothing yet though.
Could have a very positive impact and not only the MT SM.
|
|
|
Post by MoneyThing on Jun 20, 2017 15:27:41 GMT
Yep - our solicitors have confirmed that they are in funds. As soon as the funds are transferred over to us I will push the buttons.
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Jun 20, 2017 16:08:42 GMT
Ed is now pressing buttons
|
|
|
Post by elephantrosie on Jun 21, 2017 15:05:59 GMT
i am pleased
|
|