blueninja
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Post by blueninja on Jun 15, 2017 14:46:29 GMT
If I place a loan up for sale, do I continue to receive interest, or do I stop accruing interest (as happens with Lendy)
Apologies if this is an FAQ, but I could not find in this forum or on the MoneyThing website.
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n
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Post by n on Jun 15, 2017 15:04:27 GMT
hence nearly £2m on sale
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Post by MoneyThing on Jun 15, 2017 15:04:57 GMT
If I place a loan up for sale, do I continue to receive interest, or do I stop accruing interest (as happens with Lendy) Apologies if this is an FAQ, but I could not find in this forum or on the MoneyThing website. @leopardcat is right, lenders continue to accrue interest whilst their loan parts are for sale on the SM. Whilst it would be nice to retain the interest ourselves, we don't feel this is appropriate.  I do wonder however, what effect it would have on our current SM availability if we did adopt the other approach (not that we would). Regards, Ed
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Sr. Lobo
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Post by Sr. Lobo on Jun 15, 2017 15:25:57 GMT
I do wonder however, what effect it would have on our current SM availability if we did adopt the other approach (not that we would). Looking at lendy I will say there will be no effect or maybe the unexpected, less lenders and so bigger queues.
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n
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Post by n on Jun 15, 2017 15:29:33 GMT
If I place a loan up for sale, do I continue to receive interest, or do I stop accruing interest (as happens with Lendy) Apologies if this is an FAQ, but I could not find in this forum or on the MoneyThing website. @leopardcat is right, lenders continue to accrue interest whilst their loan parts are for sale on the SM. Whilst it would be nice to retain the interest ourselves, we don't feel this is appropriate. I do wonder however, what effect it would have on our current SM availability if we did adopt the other approach ( not that we would). Regards, Ed Glad to hear it Ed. My comment was prompted by the discussions about discounts, a real marketplace etc on the dark side. I think the difference here is that the feast/famine situation is (going to be) managed by you whereas there they don't seem to be concerned and leave it for investors to sort it out themselves.
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SteveT
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Post by SteveT on Jun 15, 2017 15:33:35 GMT
I do wonder however, what effect it would have on our current SM availability if we did adopt the other approach (not that we would). On the one hand, there would probably be rather less listed for sale on the SM at any particular moment in time. On the other hand, larger new loans would likely be slower to fill in the first place, as lenders avoid taking on larger stakes than they're happy to hold to term (knowing they may face a lengthy period earning no interest as they later reduce their holding). Swings and roundabouts
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Post by MoneyThing on Jun 15, 2017 15:42:52 GMT
Good points...thanks.
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Post by GSV3MIaC on Jun 15, 2017 16:24:21 GMT
And over at the competition (L) you can watch a whole lot of parts being delisted at 23:59, so they collect interest at midnight, and then relisted again at 00:01 (mea culpa, somewhat) which amounts to 'yeah, I'd like to sell these parts but I'm not willing to take any sort of a hit to do so'. On MT I'd just leave them listed. On ABL/FC/ReBS/etc. I'd list them at some markup/down appropriate to how badly I wanted rid of them (or not) .. most things are for sale, if the price is right.
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stevio
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Post by stevio on Jun 16, 2017 21:43:04 GMT
If I place a loan up for sale, do I continue to receive interest, or do I stop accruing interest (as happens with Lendy) Apologies if this is an FAQ, but I could not find in this forum or on the MoneyThing website. @leopardcat is right, lenders continue to accrue interest whilst their loan parts are for sale on the SM. Whilst it would be nice to retain the interest ourselves, we don't feel this is appropriate. I do wonder however, what effect it would have on our current SM availability if we did adopt the other approach (not that we would). Regards, Ed A substantial amount listed might be to fund the new loans. It also gives others chance to diversify Should interest be lost, SM availability likely decrease, resulting in less diversity and less funds for new loans. At the moment where in a feast of availability across lots of platforms. CO has had a CB fuelled drive and increased rates to 14% AB also sticking with some higher rate loans, but struggling with lower rate ones FS continue substantial deal flows at substained 13% Lendy decreased rates trying to capitalise on period of famine, but at expense of losing existing customers who are now trying to head for the exit MT increased deal flow, but at expense of delaying ISA. But as in feast period, 11-12% loans not that appealing.
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elliotn
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Post by elliotn on Jun 17, 2017 3:09:36 GMT
A substantial amount listed might be to fund the new loans. It also gives others chance to diversify Should interest be lost, SM availability likely decrease, resulting in less diversity and less funds for new loans. I come at this from the opposite angle. When there is less SM availability the implicit desirability leads to FFF on any loan parts up for sale and increases your speed of sale. The current glut may delay purchases if you think you can dip in whenever you want and it may also discourage re-selling for new loans if you think you will not quickly sell. Also, looking at the active investors on here, it would appear many see the SM as a proxy for confidence in the platform, so long queues may discourage new investors. On a personal level, I've recently doubled my platform cap after selling out of Ly but if I am unlikely to sell because of enhanced interest paying queues, I'm more likely to sit out new loans as I'm already at my max. On a macro level, we can see the current imbalance between lender and borrower demand across many platforms which is most likely a reaction to a recent increase in origination (MT, Col, Ly) and political/economic uncertainty regardless of the type of SM (interest accruing on MT/interest lost after month end on Ly/non-par on AC). MT will have taken note that FS has bucked this trend by bringing in external ISA funds and this could certainly shake up the couple of million on the SM in the 2nd half of the year (and even Bolton could halve it on, er, Monday  ).
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GeorgeT
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Post by GeorgeT on Jun 17, 2017 10:47:45 GMT
Reduced liquidity is catching but the position on MT is exaggerated because you keep getting your interest while it's up for sale so ,and I've done it myself, you stick something up for sale thinking I wouldn't mind having a little bit less of that and you aren't really keen to sell it but if you do all well and good you will invest it in one of the loans you are a bit lighter in.
A SM that pays interest encourages more shuffling of an investors pack within the same platform because there is no financial penalty in trying to improve your portfolio by having a little bit less of this and a little bit more of that it etc etc
Now the scales have tipped and I have more invested on this young, well run, default free platform than on the older L one and interest on loan parts for sale is just one of 15 reasons I could give for this.
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Post by GSV3MIaC on Jun 17, 2017 12:07:47 GMT
On the topic of 'parts for sale', my account is failing to show anything under the 'for sale' tab, although 'my loans' (correctly) shows me there are several for sale. Is it just me, or is there some more general malfunction? Maybe I have exceeded some limit somewhere (or maybe the site has, overall?). Obviously you cant test this for me unless you actually have some for sale! 8>.
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SteveT
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Post by SteveT on Jun 17, 2017 12:24:50 GMT
On the topic of 'parts for sale', my account is failing to show anything under the 'for sale' tab, although 'my loans' (correctly) shows me there are several for sale. Is it just me, or is there some more general malfunction? Maybe I have exceeded some limit somewhere (or maybe the site has, overall?). Obviously you cant test this for me unless you actually have some for sale! 8>. Mine is fine, although that page always default sorts by "Asset details" (Z-A) so has to be re-sorted by "Unsold" to bring any that are for sale to the top. MoneyThing, could the "For Sale" page be set to sort by "Unsold" (high to low) instead?
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n
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Post by n on Jun 17, 2017 13:39:15 GMT
Shoot me down in flames but wouldn't you expect the 'For Sale' tab under 'My Loans' to only show parts for sale and not also those already sold? (That is where I go to see anything I have up for sale, but then sort by 'Action' to get those actually for sale to the top.) (I have nothing for sale at the moment.)
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Post by GSV3MIaC on Jun 17, 2017 14:08:26 GMT
Yes, the fact it shows 'already sold' as well is a second order issue (but right now mine shows nowt, so I guess it is just me. Maybe I overflowed their buffer .. I have sold quite a few over the year or so I have been with them). Another bug I have pointed out to Ed is that if you go to the 'my loans' page, and you have more than 1 page full, then the 'sort by' (eg amount for sale) only sorts the content of the page you are looking at .. you can sort page1 by 'amount for sale' and you can sort page 2 by 'amount for sale' but you can't get the whole lot sorted that way with just the 'top for sale items all on page 1. At least I can't. Was not an obvious issue until I had >1 page of parts.
update: The lack of a 'for sale' tab was entirely my fault - at some point I'd asked (manually) for a sort on some field which didn't actually correspond to anything, and the website remembered that sort for ever more (until I asked for a saner one). Thanks to Ed (well The Shuang really) for pointing out my problem!
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).