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Post by wiseclerk on Oct 4, 2018 15:42:07 GMT
Latest matched 5 year rate is 19.9% (no typo)!! Any chance of Poms getting in on this , say, using TransferWise? I had a nice relationship with Mintos and Latvia a year or so ago.... but I guess that's EU …. Yes, instruction here:
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gb007
Member of DD Central
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Post by gb007 on Oct 4, 2018 17:26:07 GMT
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Post by wiseclerk on Oct 4, 2018 20:54:39 GMT
Marketlend is not withholding tax. Ratesetter AUS is depending on country of residence (see above linked article).
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Post by dan1 on Jan 29, 2020 22:25:41 GMT
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Post by wiseclerk on Mar 2, 2020 20:45:43 GMT
One month rate at Ratesetter Australia peaks at 9.0% (no typo) this morning. Money on offer is exceptionally low across all terms.
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Post by ehds on Mar 26, 2020 10:27:53 GMT
Hi All,
New to the forum, first post. I’m wondering about thoughts on robustness of Aus Ratesetter business in these dark times? I have a substantial investment in the rolling 1 month market and wondering if anyone has concerns about their investments / liquidity credit risk? Like ratesetter uk, the Aus firm has a provision fund, credit risk management etc, but liquidity gets tighter as lenders withdraw investments -the ability to pull funds out gets harder - and the longer funds remain invested the higher the potential credit risk - does anyone have concerns about their investments?
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 26, 2020 11:25:45 GMT
I am only in their 30 day lending and have been steadily withdrawing for nearly 3 weeks now.
Despite my re-investments being clearly set for repayments to go into my Holding Account I have had two amounts yesterday and one today auto re-invested, against my explicit instructions.
Whether it is a glitch OR something they can do (buried in their Ts & Cs) both are very concerning and I am not happy at all. I have just sent a second strong email to them.
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Post by ehds on Mar 26, 2020 19:48:43 GMT
It is actually in their T&Cs, it’s a rolling 1 month market which means if there is no new investor to take over your portion of the loan, it continues to match to that loan at the same rate until someone takes it over. I believe this could happen at any time as opposed to you having to wait a month I.e the rollover period is just an indicative date. And this will likely happen as the liquidity returns to the market.
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Post by hovisloaf on Mar 27, 2020 8:37:30 GMT
I am only in their 30 day lending and have been steadily withdrawing for nearly 3 weeks now. Despite my re-investments being clearly set for repayments to go into my Holding Account I have had two amounts yesterday and one today auto re-invested, against my explicit instructions.Whether it is a glitch OR something they can do (buried in their Ts & Cs) both are very concerning and I am not happy at all. I have just sent a second strong email to them. Hey mate. We're in the same boat here! I've been doing the exactly the same - and two days ago what should be landing in the holding account is back in the 30 day market with a little^ next to it. Reading the fine print, the ^ means if they don't have investors ready to take over the loan - it goes back on until they do. On the bright side, it's still invested - and not everyone is going to default on loans.
I guess we just have to wait and see.
I have some coin still in the UK RS - same thing there. Reading the forum, some seem to think it's still a stronger investment than the stockmarket. Will have to wait and see for that one too. Not good for the nerves, but not much we can do about it now!
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Post by ehds on Mar 27, 2020 9:28:07 GMT
Yes it’s nerve-wrecking, it’s all about liquidity which is returning slowly, and while that’s happening, the situation is still okay.
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Post by ehds on Mar 27, 2020 9:30:49 GMT
Also if it says “pending access”, it will be returned as soon as matched, not that you will necessarily have to wait the full 1 month. But again it’s all about liquidity, which hopefully will be back to previous levels after Aus flattens the curve
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jw
New Member
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Post by jw on Mar 27, 2020 16:29:26 GMT
Hi,
I'm invested in the Australia RS too and, just today, had it reinvested automatically (and states ^ "Access pending"), although I have my instructions set for funds to go into my holding account.
I was wondering if you could shed some light to my questions below...
1) Does it mean that as soon as there are lenders available in the 1 month market, my loans can be taken over and my funds returned to my holding account?
2) I checked the liquidity in the one month rolling market and there seem to be lenders in across the spectrum of % from 2.8% all the way to 9%, totalling more than one million (which is above their replacement fund buffer of $300k), so I dont understand why my funds are not returned to my holding account but instead reinvested.
3) Does the replacement lender's interest rate (new "matched lending") have any bearing on whether my loan can be taken over by the new lender's funds? i.e. Do they have to be the same as my current interests rate as what I've got? What if it's higher or lower, does that have any bearing on whether my loans will be taken over and my funds returned to my holding account?
Thanks so much.
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Post by ehds on Mar 28, 2020 1:57:34 GMT
Hi I’ll try and answer as best as I can with the information they have given me ( we have to assume they are being honest and transparent here, so that’s the caveat with my responses):
Quite simply, if your funds are “access pending”, they are effectively in a queue ( similar to RS uk) - there is currently only one queue and that’s for the 1 month rolling market ( I was told no queues for 3,5,7 yr markets).
So while it appears your funds are rolled over for another month, technically they will be released as soon as there is an investor ready to replace you. So that release is totally dependent on the new investors coming in - BUT, those new investors must be above the $300k cap, so say there are $310k of new investors, my understanding is $10k goes to the queue to release those waiting release. Also your funds will be released by a new investor irrespective of your/their asking rate.
The $1.4m depth in the 1m rolling INCLUDES pending access so it’s a big deceptive in the sense that you can’t really tell new from existing investors - I understand however that they are building functionality to show you where you are in the queue which will be damn good to soothe our crazy nerves at the moment!
While I’m nervous and I have a huge amount to lose trust me, I am also fairly happy with how much transparency they are providing ( when asked), so hopefully they are being honest. They also seem to be taking sensible steps to stem the flow of funds out, and while I’m not happy about the queue, I also understand it’s an orderly exit which protects the business and in turn investors funds.
I have also been monitoring the provision fund, because while our funds are in the queue we are exposed to credit risk I.e potential borrower defaults, the good news so far ( again this assumes the data on the site is correct), the PF has increased $50k in three days, and my understanding is that they are increasing the borrowers payments into the PF which is starting to address potentially higher default rates, I have also been monitoring the % in arrears that’s still pretty stable. Obviously this picture may change as more workers are stood down, but again as long as the PF continues to increase at a greater rate than borrowers in arrears, our funds are somewhat safe.
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Post by ehds on Mar 28, 2020 2:05:14 GMT
And while it’s hard to say don’t panic, because I have had moments, I’m still going to say it, don’t panic, so far they seem to have a reasonable plan in place to return investor funds albeit at a slower rate. Someone in one of the uk threads likened the current rush to pull out funds as equivalent to the bog roll madness, and we know that’s somewhat abated as people have a better sense of where we are going with the virus and as our confidence grows in the measures the government is implementing - the stimulus packages are definitely going to help.
I was also told they are still seeing a lot of new investors, but this needs to keep growing above the cap for movement in the queue. Remember that they are still offering better rates than the banks and most people are avoiding the stock market like the plague.
So don’t panic ( yes easier said than done!)
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jw
New Member
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Post by jw on Mar 30, 2020 1:31:22 GMT
Hi ehds,
Thanks so much for the reply. I really appreciate it. It all sounds consistent with what I've been hearing as well.
So, what happens when new investor funds consistently sit below $300k as they are continually taken up by higher borrowing demands? Does that mean that the access queue doesnt move?
It's great that I found this forum to connect with fellow RS investors in Australia. I'll be keen to hear any progress on your end if you don't mind, and I'll write here as well if I have any updates on my end. Do you know any other places where there are up to date discussions on RS Australia?
Thanks.
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