jonah
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Post by jonah on May 25, 2017 4:24:45 GMT
.... and now for your entertainment we have 2.9%, the same as rolling, is this a record? one person puts on £47 at 3% with nothing else below 3.6% and then only chicken feed below 4%, so RS addds 1263 MR orders totalling £117,854 at 2.9% Not sure on records, but this definitely looks like a trend in the monthly view... p2pindependentforum.com/post/157158/thread
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Post by newlender on May 25, 2017 5:08:37 GMT
More entertainment in the 1yr market - same phenomenon, I suspect. My repayments are accumulating nicely in my Holding Account with nowhere to go. Without MR reinvestments it's clear that the markets would be totally different. I wonder at what rates RS are lending all that cash this week.
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jimc99
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Post by jimc99 on May 25, 2017 5:35:02 GMT
Lent at 3% to 60% as loans to individuals, businesses, property developers and other lending companies. Info in the RS blurb on the Provision Fund ..... see this link.... www.ratesetter.com/invest/everyday-account/protection#popfSorry I don't know how to highlight it on my tablet! Edit...Oh, it highlights itself.
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jlend
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Post by jlend on May 25, 2017 7:33:59 GMT
It does feel a shame that rates have dropped so low for a combination of reasons. I think basically though they just aren't finding enough borrowers even at these low rates by the look of things. It does feel like they are struggling to scale up which given all their external investment is surprising.
I was one of the early registered lenders in 2010 and have seen rates go up and down over that time but nothing like this on the 1 and 5 year market.
At a average 6.3% on the 5 year on my remaining loans I'm withdrawing the money as it gets paid back.
I can't see things changing without ratesetter originating a lot more loans. They don't seem to have a problem finding lenders cash.
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nairda
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Post by nairda on May 25, 2017 7:45:30 GMT
I withdrew all my funds under the free sellout arrangement but my wife still has a few £k in the 5 year market. She is withdrawing gradually but it will be a long process and I wonder if RS is going to survive long enough for her to get her money back.
I am beginning to think it is time to bite the bullet and sell out even at a cost of about 3% according to the calculator last night. Most of her loans are less than a year old.
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r00lish67
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Post by r00lish67 on May 25, 2017 8:13:17 GMT
I withdrew all my funds under the free sellout arrangement but my wife still has a few £k in the 5 year market. She is withdrawing gradually but it will be a long process and I wonder if RS is going to survive long enough for her to get her money back. I am beginning to think it is time to bite the bullet and sell out even at a cost of about 3% according to the calculator last night. Most of her loans are less than a year old. I'm not sure anyone is suggesting that they're in particularly poor health are they, or are they? Unfavourable investor rates are bad for us, but could be absolutely dandy for Ratesetter. I would consider it a more concerning indicator if the rates suddenly shot up, indicating that Ratesetter are taking on more risky borrowers. Edit: Reading again, I can see where this concern comes from. I'm not sure we should assume RS have a loan origination problem (unless this is a data driven concern?), but simply that investor supply is (significantly) outstripping borrower demand.
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Post by gidoppp01 on May 25, 2017 8:38:48 GMT
Agree, I think there are too much money available on RS for lending but not enough diversified products to make the best of the money available.
It seems RS is not in a hurry to entice investors, more happy to charge FEEs for early SELL OUT and no incentives to attract more money. They are more happy to exploit their position on their markets. I am pretty sure once the pool is dried out, the rates will be up again, but not sure by how much.
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gnasher
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Post by gnasher on May 25, 2017 8:43:23 GMT
I do not think RS are in any kind of trouble, indeed lots of cheap money is to their advantage and YTD volume of 271M looks fine against 2016 full year of 664M.
I am very happy to let my 5 yr @ 6.2% run off and did not consider cashing in during the fee free sell out period. There did not appear to be any better risk/reward options out there as far as I could see. Still happy with that decision.
But as for reinvesting at 2.9% - hah - you must be joking!
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mary
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Post by mary on May 25, 2017 8:58:18 GMT
Cashed out 100% as all loans had ended and could not get reinvested at a reasonable rate.
On doing this I was presented with a tick box question as to why I was withdrawing, I obviously ticked "better rates available elsewhere".
Can't remember what the other options were, but my target return for none government protected investments is 5%, and it seems that those days are long gone here.
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Post by gidoppp01 on May 25, 2017 14:40:45 GMT
Latest offer from 1 borrower is 4.1%, size 14k.
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oldgrumpy
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Post by oldgrumpy on May 25, 2017 15:03:48 GMT
Latest offer from 1 borrower is 4.1%, size 14k. Convenient how two borrowers "suddenly turn up" offering 4.1% when there are no lenders offering less than 4.2%
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Post by lusitania on May 25, 2017 17:30:06 GMT
An early repayment email triggered me to check my account after several months of absence, whilst I wait for it to empty.... staggering 2% on the 1 year! Have been on RT for some time but never saw such low... just a couple more hundreds and I'll gladly say goodbye! I honestly struggle to understand how come people are offering such low level of interest!!! It's definitely below inflation and surely (surely!) you can find better in a bank.... 2% seriously?....
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Post by gidoppp01 on May 31, 2017 9:47:26 GMT
Saw the 5 year rate matched to 5% yesterday.Now last match @ 10am: 3.8%
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Post by george4064 on Jul 28, 2017 14:22:40 GMT
I have a question about the Reinvestment feature in the 5 year market (but same principle would apply to all other markets).
If there are borrowers ready to borrow at 5.0% and my re-investment rate is 4.5%, would my money be lent out at 4.5% or 5.0%?
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mary
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Post by mary on Jul 28, 2017 15:12:10 GMT
I have a question about the Reinvestment feature in the 5 year market (but same principle would apply to all other markets). If there are borrowers ready to borrow at 5.0% and my re-investment rate is 4.5%, would my money be lent out at 4.5% or 5.0%? 4.5%! RS is a business making money on the difference between what we lend at, and what borrowers pay (plus fees). If rates go too low I withdraw and place it elsewhere.
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