nick
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Post by nick on Apr 25, 2017 11:15:15 GMT
There is a simple way to check this, list a loan at the back of one of the very large sales queues after taking note of the accrued interest, leave it overnight and then cancel the sale, check the accrued interest on that loan to see if it has increased. I have done this many time in the past and the interest definitely accrues on cancellation of the sale. However, I'm not sure I've ever cancelled over a month-end period - I had always assumed that the monthly interest missed that month would be captured in the following month otherwise total interest recognised will not reconcile with interest paid as it should at month-end (unless they mess with the end dates).
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jamesc
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Post by jamesc on Apr 26, 2017 10:48:09 GMT
In my recent selling I have noticed two things that I am not aware of being brought up before.
PBL168 now has a stuck part of £115 and the DFL003 stuck part of £20 odd has still not been fixed. So rather than fixing old problems new ones are being created.
When you sell part of a loan part the remaining loan part has a loan life starting from zero, even if you had held the original loan part for a long time and therefore if you need to sell to settle a negative balance you will have to hold the new smaller loan part for another seven days before you can sell, even if the original larger loan part had been purchased months before which seems wholly unfair.
Sorry if I am covering old ground !
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mikeh
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Post by mikeh on Apr 26, 2017 11:03:14 GMT
When you sell part of a loan part the remaining loan part has a loan life starting from zero, even if you had held the original loan part for a long time and therefore if you need to sell to settle a negative balance you will have to hold the new smaller loan part for another seven days before you can sell, even if the original larger loan part had been purchased months before which seems wholly unfair.
Sorry if I am covering old ground ! I haven't noticed this. Does it always happen?
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littleoldlady
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Post by littleoldlady on Apr 26, 2017 11:30:44 GMT
So let me get this straight. Would this work if you have a loan that you would like to sell but are concerned about losing too much interest?
1) Put up most of the loan for sale, retaining 1p, and note the queue length. 2) Late on the last day of the month offer the 1p part and note the queue length. 3) If you are prepared to drop that far down the queue, plus further if others are playing the same game and beat you in step 4 then cancel it. 4) At midnight on the last day put it back on sale.
What is the best way of judging exactly when month end is triggered on Lendy's system? Keep refreshing a loan until the age increments a day? Or just watch the clock?
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mikes1531
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Post by mikes1531 on Apr 26, 2017 12:35:35 GMT
So let me get this straight. Would this work if you have a loan that you would like to sell but are concerned about losing too much interest?
1) Put up most of the loan for sale, retaining 1p, and note the queue length. 2) Late on the last day of the month offer the 1p part and note the queue length. 3) If you are prepared to drop that far down the queue, plus further if others are playing the same game and beat you in step 4 then cancel it. 4) At midnight on the last day put it back on sale.
What is the best way of judging exactly when month end is triggered on Lendy's system? Keep refreshing a loan until the age increments a day? Or just watch the clock? I'm not sure it's even that easy. ISTM that it has been suggested that the time to put a part whose sale was cancelled back up for sale is after the interest payments have been credited. Can anyone confirm whether this is correct? Or whether I'm mis-remembering and this is a red herring?
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GeorgeT
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Post by GeorgeT on Apr 26, 2017 15:10:05 GMT
Given the £millions that have been repaid to investors' accounts in the past 2 days, I'm surprised the SM isn't on fire. It's moving and I'm selling loan parts - -but not as quickly or massively as I expected.
This suggests to me that a fair bit of the repaid monies is being withdrawn from the platform and not re-invested with LfSS.
However the good news for sellers is that a proportion of it is, and queues are moving. But it seems clear that investors are being a lot more selective about what they buy than they were in the past. Reality is slowly setting in.
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vmail
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Post by vmail on Apr 26, 2017 21:46:43 GMT
They are saving their money for the 2 new loan tomorrow. New loans always upset the SM flow.
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Post by df on Apr 27, 2017 1:26:49 GMT
They are saving their money for the 2 new loan tomorrow. New loans always upset the SM flow. They would do if new loans flow is higher than the flow of capital repayments, unless there is a sufficient flow of new investors to cover the difference.
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Post by lendinglawyer on Apr 27, 2017 10:30:16 GMT
I sold my "worst" (i.e. least liquid) loan this morning in minutes - the SM has no concerns for those who hold stuff people want, only those who hold less desirable loans... What's more, my associated withdrawal was processed and in my account within an hour or so. Lendy gets enough stick on here, so I wanted to praise them where it's due. Thanks, Paul64.
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twoheads
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Post by twoheads on Apr 27, 2017 10:40:42 GMT
On Tuesday at 11:39am, the SM stood at £3.198m.
48 hours later it's Thursday at 11:39am and it stands at £1.549m.
Three big pay-outs in that time (total £6.3m) has certainly had an affect.
EDIT: But where's the remaining £4.65m of repaid capital gone?
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r1200gs
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Post by r1200gs on Apr 27, 2017 10:57:01 GMT
I sold my "worst" (i.e. least liquid) loan this morning in minutes - the SM has no concerns for those who hold stuff people want, only those who hold less desirable loans... What's more, my associated withdrawal was processed and in my account within an hour or so. Lendy gets enough stick on here, so I wanted to praise them where it's due. Thanks, Paul64 . If my loans sold in minutes, I would be questioning my reasons for selling them. Of course, if you need the money for other reasons and don't have the problem of having too much idle money (!) then you need never hold anything other that the very best loans. For some of us, me certainly, I have to balance the certainty of cash losing value in the bank with the risk of lending here, and that includes investing in loans that would appear less than ideal. If I didn't do that, the money makes less or nothing. If my loans takes a few days to sell, which has been the case with 145, that's fine with me compared to getting less or nothing on my money. Tell me, what are you going to do with the money that you released from your desirable loans? Where have you found that is better than a desirable, presumably 12 percent loan on LfSS?
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acky
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Post by acky on Apr 27, 2017 10:57:19 GMT
Given the £millions that have been repaid to investors' accounts in the past 2 days, I'm surprised the SM isn't on fire. It's moving and I'm selling loan parts - -but not as quickly or massively as I expected. This suggests to me that a fair bit of the repaid monies is being withdrawn from the platform and not re-invested with LfSS. However the good news for sellers is that a proportion of it is, and queues are moving. But it seems clear that investors are being a lot more selective about what they buy than they were in the past. Reality is slowly setting in. I am not at all surprised the SM isn't on fire. I'm afraid the landscape has changed, probably permanently. The SM is no longer sufficiently liquid to attract risk-averse investors to keep large amounts on the platform. Time was that I was piling as much cash as I could onto the platform, but not anymore. As well as long, slow-moving queues, even on some of the 12% loans, I think the level of "default" loans is now putting people off, as is the proliferation of sub-12%, even sub-10%, loans. The IOA/SBL/IA/DEF coding, while great for transparency, does rather highlight overdue loans which no-one really took notice of in the past. I track the SM on a daily basis - there was a big increase in availability ahead of the capital repayments over the last few days. The level of the SM this morning was then only back to where it was 8 days ago (£1.8m) and substantially higher than it was in the early part of the month. We may see another rise in availability ahead of the month-end interest payment. Another member comments that people are holding back cash for the two loans going live today - yes to some extent I'm sure, but one is a very small 9%-er and the other a large 10% loan at 70% LTV, which I don't think is going to prove very attractive. And there are (almost) always loans in the pipeline. I think a lot of money is leaving the platform, which saddens me as Lendy (when it was SS) was my favourite platform, but now sadly it is not.
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Post by lendinglawyer on Apr 27, 2017 11:23:07 GMT
I sold my "worst" (i.e. least liquid) loan this morning in minutes - the SM has no concerns for those who hold stuff people want, only those who hold less desirable loans... What's more, my associated withdrawal was processed and in my account within an hour or so. Lendy gets enough stick on here, so I wanted to praise them where it's due. Thanks, Paul64 . If my loans sold in minutes, I would be questioning my reasons for selling them. Of course, if you need the money for other reasons and don't have the problem of having too much idle money (!) then you need never hold anything other that the very best loans. For some of us, me certainly, I have to balance the certainty of cash losing value in the bank with the risk of lending here, and that includes investing in loans that would appear less than ideal. If I didn't do that, the money makes less or nothing. If my loans takes a few days to sell, which has been the case with 145, that's fine with me compared to getting less or nothing on my money. Tell me, what are you going to do with the money that you released from your desirable loans? Where have you found that is better than a desirable, presumably 12 percent loan on LfSS? Yup, I wanted cash to pay for something (I've been running my current account tightly for years!) and decided given current state of the SM and my overall holdings in Lendy that the right place to get it from was Lendy. Regrettably I don't have a sexier investment to head for, it's some very boring home improvements... A few days is absolutely no concern either. I think some people are too quick to worry when they can't sell immediately. Of course, if you can have the luxury of immediate sale that's great but it should never be expected or relied upon.
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Liz
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Post by Liz on Apr 27, 2017 12:35:52 GMT
On Tuesday at 11:39am, the SM stood at £3.198m.
48 hours later it's Thursday at 11:39am and it stands at £1.549m.
Three big pay-outs in that time (total £6.3m) has certainly had an affect.
EDIT: But where's the remaining £4.65m of repaid capital gone? The 4.65m is either gone/waiting to go into new loans with most of it going off platform.
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littleoldlady
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Post by littleoldlady on Apr 27, 2017 13:41:03 GMT
On Tuesday at 11:39am, the SM stood at £3.198m.
48 hours later it's Thursday at 11:39am and it stands at £1.549m.
Three big pay-outs in that time (total £6.3m) has certainly had an affect.
EDIT: But where's the remaining £4.65m of repaid capital gone? The 4.65m is either gone/waiting to go into new loans with most of it going off platform. Yes, but not necessarily permanently off platform. The overdue loans are certainly scaring off some investors, but if few or none of these turn into defaults where lenders lose money then funds will return to platform. Otherwise the SM will freeze solid and the very existence of the platform will be in question. It all comes down to the loss levels, and time will tell.
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