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Post by MoneyThing on Jun 15, 2017 18:57:55 GMT
Well written & thoughtful piece written here by wiseclerk. Regards, Ed |
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Post by wiseclerk on Jun 16, 2017 7:52:22 GMT
Thx, Ed
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SteveT
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Post by SteveT on Jun 16, 2017 8:27:41 GMT
Good article, but I'd suggest there's another (simpler?) explanation and potential "fix". In recent weeks, the balance between loan supply and demand on the platforms mentioned has swung significantly towards over-supply. There have been very few sizeable redemptions / repayments but a steady flow of large new loans to be filled (or large additional tranches in existing development loans), causing the SMs to balloon. The other factors mentioned by wiseclerk (defaults, reduced liquidity, etc.) certainly exacerbate the issue and make lenders disinclined to increase their net P2P exposure. However, a few substantial repayments and a few weeks without large new launches would quickly see the balance change again (it's low single digit % of the total loan books either way). The question in my mind is whether the expansion of large development loans, requiring steady feeding with additional tranches, will see the traditional August / September "loan famine" consigned to history. I guess we'll know in 3 months' time! |
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Post by Deleted on Jun 16, 2017 8:58:48 GMT
Yep, I'm not sure the problem is mainly on the demand side. The Lendy and MoneyThing loan books are at or close to their largest ever sizes. Personally, I'm not investing more simply because I'm maxed out on both already.
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mary
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Post by mary on Jun 16, 2017 9:04:06 GMT
Well written & thoughtful piece written here by wiseclerk . Regards, Ed Excellent food for thought. I think the point regarding lack of IFSA's and increasing sell pressure very relevant. It will be interesting to see what effect the imminent large repayment on MT has on that SM, and how much moves off platform.
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mikeh
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Post by mikeh on Jul 2, 2017 8:38:00 GMT
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daveb4
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Post by daveb4 on Jul 3, 2017 5:31:29 GMT
Hopefully the normal 6 weeks of summer (holidays not necessarily weather) will slow down the new loans and with luck some redemption's bringing some normality back to the platforms.
I certainly believe some movement is linked too many individuals maxing out on individual large loans and maxing out on platforms. we definitely need some repayments and debatebaly more people into the marketplace.
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