elliotn
Member of DD Central
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Post by elliotn on May 8, 2017 2:38:21 GMT
IMO the main reason for the absence of defaults so far is MT's DD. It also the cause of a relatively slow deal flow compared to other platforms that will lend to anybody because after all it's not their money. However no doubt there will be a default one day. There have been loans not re-paid according to the original loan agreement - standard definition of default and default interest of 18% has been passed on to lenders - but what I like about MT is the clear renewal/extension/BPF buybacks that allow investors to make an informed choice as to whether they would like to extend beyond the agreed repayment date unlike, say, FS which keeps you captive in their overdue loans (even Ly lets you (try to) sell from their late book).
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fogey
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Post by fogey on May 8, 2017 18:56:32 GMT
IMO the main reason for the absence of defaults so far is MT's DD. It also the cause of a relatively slow deal flow compared to other platforms that will lend to anybody because after all it's not their money. However no doubt there will be a default one day. There have been loans not re-paid according to the original loan agreement - standard definition of default ... So when is a default not a default ? When it is on MT ?
I am still relatively new to p2p and also MT, but here things seem to be rather different. There seems to be an incredible sense of optimism and euphoria that pervades everywhere. Loans that repay early are a disappointment and those that are extended ad infinitum are seen to be manna from heaven. Sudden sinkholes appearing at the foundations of a development site that appears to be far behind the expected schedule, talk of key planning officers not being available for some time, thereby causing further delays .... are all very trivial matters that can be disregarded. There have recently been a few mutterings around some of the more recent offerings, particularly about the validity of the VRs but nothing seems to register here as a potential problem in waiting.
The secondary market appears to be used as a form of day to day banking by some, who decide to drop in the odd few 10k that is hanging around over a bank holiday weekend or overinvest in the next new loan that becomes available as a short term parking arrangement for the following new loan.
This all reminds me of the final phase of a very long bull market where the rule is ... "if it moves then buy it " which translates here to .. " if it appears on the secondary then buy it"
So is it just me that has a very slanted view here or does anyone else feel as I do ?
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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 May 8, 2017 21:31:11 GMT
There have been loans not re-paid according to the original loan agreement - standard definition of default ... So when is a default not a default ? When it is on MT ?
I am still relatively new to p2p and also MT, but here things seem to be rather different. There seems to be an incredible sense of optimism and euphoria that pervades everywhere. Loans that repay early are a disappointment and those that are extended ad infinitum are seen to be manna from heaven. Sudden sinkholes appearing at the foundations of a development site that appears to be far behind the expected schedule, talk of key planning officers not being available for some time, thereby causing further delays .... are all very trivial matters that can be disregarded. There have recently been a few mutterings around some of the more recent offerings, particularly about the validity of the VRs but nothing seems to register here as a potential problem in waiting.
The secondary market appears to be used as a form of day to day banking by some, who decide to drop in the odd few 10k that is hanging around over a bank holiday weekend or overinvest in the next new loan that becomes available as a short term parking arrangement for the following new loan.
This all reminds me of the final phase of a very long bull market where the rule is ... "if it moves then buy it " which translates here to .. " if it appears on the secondary then buy it"
So is it just me that has a very slanted view here or does anyone else feel as I do ?
The loans werent defaults, they were extensions issued as new loans, and all lenders had the option to exit without use of the SM.
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fogey
Posts: 171
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Post by fogey on May 9, 2017 2:22:46 GMT
IMO the main reason for the absence of defaults so far is MT's DD. It also the cause of a relatively slow deal flow compared to other platforms that will lend to anybody because after all it's not their money. However no doubt there will be a default one day. There have been loans not re-paid according to the original loan agreement - standard definition of default and default interest of 18% has been passed on to lenders - but what I like about MT is the clear renewal/extension/BPF buybacks that allow investors to make an informed choice as to whether they would like to extend beyond the agreed repayment date unlike, say, FS which keeps you captive in their overdue loans (even Ly lets you (try to) sell from their late book). "The loans werent defaults, they were extensions issued as new loans, and all lenders had the option to exit without use of the SM."
So is there something about the way that MT handles this sort of situation, where a loan avoids the standard definition of default because of the options it provides lenders ? Does this make MT loans inherently less risky to lenders compared to the other platforms (especially the ones highlighted above ) ?
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archie
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Post by archie on May 9, 2017 6:19:04 GMT
There have been loans not re-paid according to the original loan agreement - standard definition of default and default interest of 18% has been passed on to lenders - but what I like about MT is the clear renewal/extension/BPF buybacks that allow investors to make an informed choice as to whether they would like to extend beyond the agreed repayment date unlike, say, FS which keeps you captive in their overdue loans (even Ly lets you (try to) sell from their late book). "The loans werent defaults, they were extensions issued as new loans, and all lenders had the option to exit without use of the SM."
So is there something about the way that MT handles this sort of situation, where a loan avoids the standard definition of default because of the options it provides lenders ? Does this make MT loans inherently less risky to lenders compared to the other platforms (especially the ones highlighted above ) ?
Nobody is forced to keep the loan if it extends. This loan obviously had the penalty rate included so in a way it was re-paid according to the agreement. In this case the delay wasn't the fault of the borrower, it was the fault of their bank.
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