SteveT
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Post by SteveT on Apr 26, 2017 13:20:21 GMT
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SteveT
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Post by SteveT on Apr 26, 2017 13:38:33 GMT
It is just fine the way it is (In my opinion), and I see no incentive for SS to implement it. One obvious potential incentive for Lendy is to reduce the perpetual overhang of Defaulted / Interest Accruing parts currently listed with limited prospects of selling. And I doubt people would be as keen to exit unimpaired loans with 100/80/60 days remaining if they knew there was a viable route to sell later, albeit possibly at a discount if needed. Long-term, barely changing availability across a growing list of impaired loans is hardly a great advertisement for new lenders.
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Post by easteregg on Apr 26, 2017 14:40:06 GMT
Funding Circle permit +/- 3% to the headline rate, but that would effect the AER by more or less than this figure depending on the term remaining. I can see the benefits to permit selling at a premium or discount especially when demand is high or low, or if lenders want to sell quickly, but I can also agree with the comment that it should be kept simple.
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Post by Butch Cassidy on Apr 26, 2017 14:49:15 GMT
No thank you It is just fine the way it is (In my opinion), and I see no incentive for SS to implement it. The KISS Principle  Whilst I subscribe to the above, I would have no objection to allowing discounts, as it enables lenders to liquidate a position more quickly than otherwise if the need arises rather than being locked in as at present, but CERTAINLY NO PREMIUMS.
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mary
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Post by mary on Apr 26, 2017 14:50:41 GMT
No thank you It is just fine the way it is (In my opinion), and I see no incentive for SS to implement it. The KISS Principle Agreed. Simplicity is best.
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SteveT
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Post by SteveT on Apr 26, 2017 15:54:18 GMT
I don't think a discount is going to persuade investors to invest in defaulted loans/ Interest Accruing loans, and if they do, then there is that uncomfortable feeling that a certain party is being taken advantage of.Are you worried on behalf of the buyers or the sellers? There are some on the defaulted list that I'd happily buy into at the right discount. The funny thing about a free market is that it finds its own level of fair exchange. It's a bit of a nonsense that a brand new 365 days 12% part and a defaulted -243 days 12% part must both be priced the same, and no surprise that one goes in seconds whilst the other has zero takers!
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Post by Deleted on Apr 26, 2017 16:24:12 GMT
I'm in favour of par-only for simplicity sake as well
But if we do go down the premium/discount route, please please please keep the increments large.
None of that +/- 0.0616524% nonsense, where people can undercut or outbid each other by fractions of a penny
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GeorgeT
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Post by GeorgeT on Apr 26, 2017 16:25:11 GMT
No. Status quo please.
I avoid complicated platforms.
I'm only still here, despite all the shortcomings, because of the simplicity of using the platform. If it became all about premiums and discounts I'd likely leave. I would guess others would to. That would ultimately damage everybody's interests.
Be careful of what you wish for.
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SteveT
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Post by SteveT on Apr 26, 2017 16:32:32 GMT
Why is it nonsense? There is only one contract, with the rate agreed when the loan goes live. I guess this all goes back to the "expect to hold to term" that I often preach about, and I would argue that a discount/ premium system would mask this line of thought, and thus investors invest thinking they can simply exit at any time. So would you extend your logic to stopping trading in corporate bonds, government debt and other fixed interest securities (at anything other than Par)? The coupon on a bond or gilt is fixed at launch but many other factors affect the price at which it may be bought and sold over its term. Out of interest, do you hold all your Lendy loans to term then, or just make sure to sell them on before the exit queues form?
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lobster
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Post by lobster on Apr 26, 2017 16:46:51 GMT
No thank you It is just fine the way it is (In my opinion), and I see no incentive for SS to implement it. The KISS Principle I think it should be implemented, then those who wish to utilise it can obviously do so. For those who wish to "keep it simple", no problemo - just ignore the option.
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elliotn
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Post by elliotn on Apr 26, 2017 16:49:47 GMT
I may have to abstain simply because of the days I lose each month reconciling FS & abl to cash may prejudice my voting ( ablrate is appalling as the data isn't even provided on the website but requires sifting through a morass of emails). At best just discounts like AC for genuine sellers rather than BHs hording the best loans and listing at hiked prices (as will presumably happen on the premium generators sold yesterday) - perhaps once a loan has gone overdue to help recycling if their are risk appetites out there willing to take it on. |
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mary
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Post by mary on Apr 26, 2017 16:51:12 GMT
Why is it nonsense? There is only one contract, with the rate agreed when the loan goes live. I guess this all goes back to the "expect to hold to term" that I often preach about, and I would argue that a discount/ premium system would mask this line of thought, and thus investors invest thinking they can simply exit at any time. So would you extend your logic to stopping trading in corporate bonds, government debt and other fixed interest securities (at anything other than Par)? The coupon on a bond or gilt is fixed at launch but many other factors affect the price at which it may be bought and sold over its term. Out of interest, do you hold all your Lendy loans to term then, or just make sure to sell them on before the exit queues form? No, we let our pension funds trade such things as a complex part of the asset mix to achieve balanced returns. Most people on P2P are part timers, and there are already plenty of platforms offering the complexity you desire, so simple, easy to understand is also a key selling point and why I'm part invested here.
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dovap
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Post by dovap on Apr 26, 2017 16:55:29 GMT
daft idea but if there's margin to skim a bit more they'll prob give it a whirl
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dzo
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Post by dzo on Apr 26, 2017 20:51:18 GMT
I like premium/discount on FS, but it does make things more complicated.
Lendy's at-par SM worked very well until recently. The new IOA/SBL/IA/DEF system is clearer, but it seems to make people keener to offload their old loans.
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blueninja
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Post by blueninja on Apr 26, 2017 22:31:44 GMT
Keep it simple that's one of the attractions of the Lendy platform. There are other sites like FS if you want that style of SM.
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