gnasher
Member of DD Central
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Post by gnasher on Feb 20, 2017 10:26:02 GMT
Just changed my vote from 'staying put' to 'other' where other will be mainly Octopus Choice for the moment. Would put more into MT but rate of investment is a major limiting factor.
I have been a very happy RS investor for 5 years, but I will now go into run off and auto withdrawal. The Password fiasco was the final straw, but lower rates, PF coverage and all that blurgy purple yuch website (no I have not got over it yet!) were already making me less happy with the amount that I had in RS.
My 5yr loans at 6%+ still look good to me, so I see no need to take the free sell out offer. Not sure what else I would do with the money right now.
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r00lish67
Member of DD Central
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Post by r00lish67 on Feb 22, 2017 16:17:25 GMT
I'm marginally staying put with my 6.2% mix of 3-year and 5-year, mostly out of inertia and lack of other places that I'm willing to move to (having recently exited SS, my investment in other places have become a little over-concentrated already for my liking).
However, on reflection, these changes do now put me off investing in Ratesetter any further. Before, I felt that RS would be rather incredibly keen to avoid a resolution event, and so I could treat my portfolio return as basically 'the return', whilst still acknowledging a small risk of catastrophe.
Now, I feel like whatever rate I achieve must be tempered by the much more likely possibility of some interest/capital loss. On other platforms I lend at 10-14%, and also expect that, so plan for an approx 7% return net. So here the best I'll achieve in current market conditions in 6% and with that a lock in for 5 years, and my plan would be for what? 2? 3%? Hmm...not convinced.
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teddy
Posts: 214
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Post by teddy on Feb 22, 2017 17:00:33 GMT
However, on reflection, these changes do now put me off investing in Ratesetter any further. Before, I felt that RS would be rather incredibly keen to avoid a resolution event, and so I could treat my portfolio return as basically 'the return', whilst still acknowledging a small risk of catastrophe. Now, I feel like whatever rate I achieve must be tempered by the much more likely possibility of some interest/capital loss. On other platforms I lend at 10-14%, and also expect that, so plan for an approx 7% return net. So here the best I'll achieve in current market conditions in 6% and with that a lock in for 5 years, and my plan would be for what? 2? 3%? Hmm...not convinced. This is precisely the reason I've sold up for free at RS. My 5 year average rate was 6.2% which was reasonable when the PF was in a healthy state and there was no possibility of capital loss. Now, the PF coverage is down by 50% in the last 3 years, the company's clearly on skid row, and I'm being threatened with haircuts. The problem is, if RS goes down the tubes, I fear for the rest of the p2p sector.
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Post by GSV3MIaC on Feb 22, 2017 21:09:46 GMT
/mod hat off
I resemble that remark, but also influenced by the disappearance of the 3 year market, the impossibility of setting 'fire and forget' reinvestment at 'MR with a floor of x%', which YR used to do for me, and the fact that the sell out costs on my 5 year portfolio were looking increasingly stupid (turned out to be 6.5% of what I had left, which was only earning 6.x% anyway .. differential rate claw-back on what has already been repaid). Then there's the 'no longer engage on the forum', and the new login nonsense, and the increasing incidence of unhelpful early repayments and .. and .. it was fun while it lasted but it isn't the same old RS that I signed up for. Maybe if the ISA ever appears and I can reliably get 4% tax free on rolling ...
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Post by WestonKevTMP on Feb 23, 2017 8:07:43 GMT
Now, the PF coverage is down by 50% in the last 3 years, the company's clearly on skid row, and I'm being threatened with haircuts.... If the forumites don't mind, I would like to counter this, which I consider to be slightly scary hyperbole. Agreed I'd like the Provision Fund to be bigger. However the coverage ratio is a forecast, it's worth noting that the Provision Fund has clean assets of over £22m and an income stream from historic bad debt. This is the largest fund globally, by nearly double. And in terms of "skid row", jeez. Platform has been going for 7 years and has still delivered every penny to every lender every day. That's an impressive record and should deserve some trust. To date that's £63m in lender interest. They are now matching record loans of around £60m monthly and growing. They've lend £1.75b and received back over £1b. Lending money is easy, RateSetter have proven they usually make good lending decisions and they can get it back as well. No-one has been "threatened" with a haircut. They are rightly putting the correct governance around the fund to cater for any potential eventuality. That's sensible, and should be expected of a more mature platform. And I suspect there will more news in 2017 that will further strengthen the platform robustness. So please, if you want to leave then make use of the very generous fee-free offer. I appreciate this hasn't gone smoothly for all, but the general feedback I'm reading is that they are doing a good job in the circumstances. Considering this is a one-off and not BAU. Rant over, Kevin.
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Post by ruralres66 on Feb 23, 2017 10:22:02 GMT
Thanks for your view and for your confidence in RS. It will help me make my decision as to a free bail out or not!
Listening to the financial news, their is little honesty and transparency let alone any capacity to influence other "conventional" financial products, so all in all, "alternative" finance does provide lenders and borrowers with some choice and it adds some competition into the market to challenge the big banking monoliths!
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