ganymede
Member of DD Central
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Post by ganymede on Apr 5, 2017 7:33:47 GMT
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Post by d_saver on Apr 5, 2017 8:13:03 GMT
"A spokesperson said that the platform plans to reduce its average investor returns, so that it can lower the rates it offers borrowers and originate more loans. This in turn would help Lendy continue to grow and remain profitable, the spokesperson added."
So, much smaller return to investors for same risk (or increased risk given new loans and state of economy and likely opt-in to all loans), yet SS makes more money. I'm totally on board with that...
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vmail
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Post by vmail on Apr 5, 2017 8:14:19 GMT
Not read the article, but will these bonds dry up the SM at a discounted rate and Lendy keeps the extra interest?
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Post by d_saver on Apr 5, 2017 8:18:44 GMT
Not read the article, but will these bonds dry up the SM at a discounted rate and Lendy keeps the extra interest? I guess these may apply to a different class of investor. But, given the oversubscription of loans (200% as they state), surely a portion of all loans will in the future be reserved against the bonds being issued. I would imagine this would make direct allocations even smaller. If they are mixing the loans that is. They would also have to purchase off the SM in order to diversify their initial bond portfolio? It'll be interesting to see more detail of how it will all work when they launch. How the liquidity will work, etc. There must be some cash backing and added liquidity to it, as "the bond notes will allow clients to invest as much as they want at any given time"
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hazellend
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Post by hazellend on Apr 5, 2017 8:32:38 GMT
Unfortunately, I think this is the end of days for those that post on these forums as most of us would not invest at such low rates. Maybe if it was 100% backed by a provision fund?
Although I prefer Moneything and ABLrate, I am sure they will end up with similar offerings as they need to grow.
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Post by d_saver on Apr 5, 2017 8:45:57 GMT
I was thinking much the same. I really regret allowing work to dominate practically every hour of my waking life for 3 years until last summer, thus being very late to the P2P party whilst running 100k in a pathetic savings account. Same regrets, but for longer 
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twoheads
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Programming
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Post by twoheads on Apr 5, 2017 8:51:58 GMT
So, much smaller return to investors for same risk (or increased risk given new loans and state of economy and likely opt-in to all loans), yet SS makes more money. I'm totally on board with that... I would expect the risk to be lower because someone 'in the know' at Lendy should be managing these bonds to keep them in long term good quality assets (much the same as many on this forum mitigate the P2P risks).
What is a worry for me is that the managed bond fund could take priority over regular investors when purchasing on the SM. For example, it would be easy for the Lendy bond fund to automatically purchase any loan part sales without them ever appearing on the SM.
P.S. Does anyone know how to add a word (such as 'Lendy') to the forum spell checker?
EDIT - I see the spell checker is local to my browser... my problem... I'll find the solution.
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SteveT
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Post by SteveT on Apr 5, 2017 8:58:26 GMT
The article opens with "Peer-to-peer property specialist Lendy is launching its first-ever bond, looking to entice less proactive fixed-income investors by providing indirect exposure to whole loans."
The mention of "whole loans" leads me to think that the bonds will be holding different loans from those listed on the platform, probably smaller ones at lower rates.
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mikeh
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Post by mikeh on Apr 5, 2017 9:11:04 GMT
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 5, 2017 9:37:21 GMT
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r1200gs
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Post by r1200gs on Apr 5, 2017 9:54:36 GMT
"A spokesperson said that the platform plans to reduce its average investor returns, so that it can lower the rates it offers borrowers and originate more loans. This in turn would help Lendy continue to grow and remain profitable, the spokesperson added." So, much smaller return to investors for same risk (or increased risk given new loans and state of economy and likely opt-in to all loans), yet SS makes more money. I'm totally on board with that... Yep. It is all about the money. More loans, more money for Lendy. Ths is just another sign that Lendy couldn't care less about investors or the risks that they pass on to the investors, as long as they are sending money. Lendy/ Investor relationship must be at an all-time low, and news articles like this just keep stoking the fire. I honestly feel like Lendy are taking Investors for granted - However, I don't think they are going to hang around while the rate plummets and the risks continue to be the same This investor won't be hanging around. My investment has increased recently as I see 12 percenters on the SM that I am happy with and that others seem to be not bothering with because they aren't going to be around long. Once they are gone though, AND with my new UK residency opening up a whole new bunch of investing options, it's inevitable that I'll be going elsewhere. 7 percent at 70 percent LTV? Really?
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seeingred
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Post by seeingred on Apr 5, 2017 10:12:16 GMT
"7 percent at 70 percent LTV? Really?"
When you factor in dodgy valuations, 7% at 100% LTV.
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Balder
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Post by Balder on Apr 5, 2017 10:12:38 GMT
Perhaps this is instead of them doing an IFISA - which I suspect would be at this type of rate 5%.
You can get a 2 year bond with Dolphin Trust (asset backed, 20 year track record) paying 10% interest paid every 6 months - or even 5 year interest paid at term 12% pa.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 5, 2017 10:25:21 GMT
I like yer style seeingred ...................................  |
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r1200gs
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Post by r1200gs on Apr 5, 2017 11:19:02 GMT
"7 percent at 70 percent LTV? Really?" When you factor in dodgy valuations, 7% at 100% LTV. I'll be happy to take your word for it. At that rate, I wouldn't even bother doing any DD.
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