agent69
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Post by agent69 on Jan 8, 2017 9:58:22 GMT
Like many others I haven't put money into the 5 year market for many months. I'm not a fan of the rolling market, so I'm running down my RS exposure (along with TC).
I've put a bit into SS, MT and ABL, but most of my money is going into my company pension via salary sacrifice (currently up to the £40k limit). You get an immediate return of 45%, so why would you want to go anywhere else?
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Post by dualinvestor on Jan 8, 2017 13:42:01 GMT
I honestly can't understand anyone investing in 5 year loans at the present rate. Can anyone see BoE interest rates remaining at the present rates in 4 years time, or even being reduced when inflation is expected to significantly raise by a point or two due to the value of the pound being reduced. Yes I know that the money market is awash with money but doesn't this remind you of before the last crash and the consequences.
As others have said you can have money in protected bank accounts (albeit with a few DDs) at 3% so why risk money at less than 3% in RS where the protection is so much poorer? I really don't understand To be honest I didn't see them staying at 0.5% for 6 years and even less saw the next move as downward. Where they will be in five years? I don't know as Oscar Wilde (I think it was him at least) said "I can predict everything but the future."
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ashtondav
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Post by ashtondav on Jan 9, 2017 8:07:33 GMT
I don't care if they're up, down or underground. 3% is just way too low for five year risk money. If RS were to GUARANTEE returns even then 3% would be too low for me.
i will use zopa+ and to a lesser extent fundingsecure, although on the latter I do not expect to achieve their 11% target I think 7% is more realistic.
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pikestaff
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Post by pikestaff on Jan 9, 2017 8:44:55 GMT
3% is history for now. The holiday season is over and borrowers are coming back to the market. Today's MR was 4.6%. January is usually a good month for lenders and I'd expect patient lenders to be able to get well over 5%.
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adrianc
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Post by adrianc on Jan 9, 2017 9:22:57 GMT
...I'd expect patient lenders to be able to get well over 5%. 4.9% was the MR yesterday morning, so should be easy.
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ashtondav
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Post by ashtondav on Jan 9, 2017 13:51:33 GMT
Makes it even more worrying that the dumb money got lent at 3%. Luckily the dumb money will not have registered on this forum - and so remain dumb.
Tough old life, this naked capitalism.
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agent69
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Post by agent69 on Jan 9, 2017 19:30:31 GMT
Last matched up to 5%.
What's the world coming to
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Post by GSV3MIaC on Jan 9, 2017 20:00:27 GMT
/mod hat off
That's still too low to lock in for 5 (OK, more likely ~3) years, IMO, given as how it is a one sided bet - market rates go down, they refinance out of it, rates go up, and you are stuck with 5%
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ashtondav
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Post by ashtondav on Jan 10, 2017 7:19:52 GMT
My minimum is 6%. Anything surplus is withdrawn and goes into zopa+, with the aim of achieving a blended 6.3%
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trevor
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Post by trevor on Jan 30, 2017 18:27:51 GMT
Latest matched rate now 5.8
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ashtondav
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Post by ashtondav on Jan 30, 2017 22:23:13 GMT
I caved in and reduced my minimum to 5.7%. All gobbled up today.
I'm not screaming from the rafters, but I'm ordering champagne instead of that disgusting mouthwash called Prosecco....
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andyb
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Post by andyb on Jan 31, 2017 8:13:46 GMT
Do we think that rates could be improving or you think this is just a blip? I could be tempted to increase my stake if it continues to rise
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adrianc
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Post by adrianc on Jan 31, 2017 8:23:11 GMT
Do we think that rates could be improving or you think this is just a blip? I could be tempted to increase my stake if it continues to rise This morning's MR - Rolling 2.8% (with zero borrowers waiting), 5yr 4.8%... Having said that, there's <£100k waiting in the rolling below 4%.
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agent69
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Post by agent69 on Jan 31, 2017 17:43:52 GMT
For the first time in a very long time I'm fully invested, thanks to a couple of slugs at 5.8% and 5.9% in the early hours of the morning.
Currently nearly £800k of borrower offers waiting for a home, which will be well into 6% territory if it goes before tomorrows repayments arrive.
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oldgrumpy
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Post by oldgrumpy on Jan 31, 2017 17:49:46 GMT
I wonder if RS will await the morning's "first of the month" repayments so they can lend out at 5.1% or just above, rather than go up to 6%. I have a small plug from this morning sitting at £400K+ in the Q at 5.9%! I bet my for figure repayment tomorrow morning ends up about £2M back! edit Nope! They've swept out nearly all of them at rates up to 6%, including my first 5.9% smidgeon for about four months.
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