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Post by failedtheturingtest on Jul 30, 2017 16:20:23 GMT
Look like an awful lot of investors have sold out Nobody has actually sold out yet. It will still be a few weeks before RS actually start putting the loans up for sale and closing accounts. So I think any rate movements that anyone is seeing now must be just normal fluctuations. Possibly some people are making different decisions based on the knowledge that the sell-out is coming, but at this point nothing has actually been sold.
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elsee
Member of DD Central
Retired:D
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Post by elsee on Jul 30, 2017 17:27:33 GMT
... I think that deserves some credit, appreciation and dare I say loyalty. Agreed. For what it's worth (not that anybody cares) I'm withdrawing simply as a free and (near-)instant way to get at my six-figure investment, which is predominately in 5-Year. Time marches on, circumstances change, and fast access becomes very attractive. With any luck, a good proportion will be heading straight back into Rolling. Be careful, if you have any contracts below £10 they will close your account to complete your sell-out.
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Post by squeezedmiddle on Jul 30, 2017 22:06:16 GMT
I studied all the options today... decided to set everything to Auto Withdrawal on RS and sent the bail out e-mail. I plan to start using other P2P platforms and signed up for ArchOver, Assetz Capital and Octopus Choice today.
I think it's good to spread the risk and see how RS evolves over the next few months.
For me this was a 50:50 decision. I just got the feeling that the pooling of risk meant there was no incentive to be in the short term markets and I had shortened from 3 years to 1 year to rolling for personal reasons.
I liked ArchOver because you could see clearly where you were investing.
Octopus because the rate is decent and they argue the loans are backed by physical assets.
Assetz Capital, I'm still figuring out.
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clay
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Post by clay on Aug 2, 2017 18:13:42 GMT
After thinking it over for a fortnight, I'm jumping ship. It's not so much the specifics of the "bombshell", but rather an accumulation of things over the years. Ratesetter's not what it was when I signed up (and certainly not what I thought it was), and I don't think the reward justifies the risk, even for my 6%+ loans on the 5 year markets (soon to become 3% loans on the Rolling market ). What tipped me over the edge was the realisation that if I wasn't invested in RS right now and someone offered me the chance to buy my current RS portfolio, there's no way I'd take them up on the offer.
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nairda
Member of DD Central
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Post by nairda on Aug 2, 2017 19:19:33 GMT
I considered cancelling my sellout but fortunately sanity prevailed. Apart from everything else, I just can't cope with the volatility of RS interest rates. I don't want to spend all my time waiting for a peak to make an investment. Just look at the 5 year rate over the last 24 hours or so, absolutely ridiculous.
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Post by WestonKevTMP on Aug 3, 2017 8:51:08 GMT
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Post by fiatlender on Aug 3, 2017 8:55:58 GMT
I suspect that FCA authorisation will shortly follow. Perhaps September or October 2917..... I cant wait that long. Do you think there is any chance it may be earlier than this?
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macq
Member of DD Central
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Post by macq on Aug 3, 2017 8:57:34 GMT
Thanks for the pointer & info hopefully you got the year wrong but just imagine the interest compounded spotted crossed with Fiatlender
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agent69
Member of DD Central
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Post by agent69 on Aug 8, 2017 18:03:13 GMT
I emailed RS on 26th July requesting a cash out. Just received a reply saying my request will be processed (whatever than means) within 30 working days.
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alender
Member of DD Central
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Post by alender on Aug 10, 2017 9:23:36 GMT
Interesting and informative article on the Bad Loans from 4th way. www.4thway.co.uk/candid-opinion/fact-check-ratesetter-hit-80m-struggling-loans/A couple of interesting quotes for the article It became clear to RateSetter that VTG was not monitoring the scale of the Adpod loan properly. So RateSetter took on the Adpod loan so that it could manage it better for itself. So, rather than lending to VTG and VTG lending to Adpod, RateSetter's individual lenders were lending directly to Adpod on this loan. Now, RateSetter also owns Adpod due to its difficulties in repaying. If RateSetter owns Adpod, and lenders using RateSetter are lending to Adpod, it means that RateSetter lenders are now actually lending to RateSetter. This is not supposed to happen in P2P lending. Interest rates have plummeted, meaning there is less interest to cover any losses if the reserve fund proves insufficient. RateSetter's five-year lending account was paying up to 6.7% two years ago. It's now down to an average of just 4.36% over the past three months. Intense competition in lending to individuals has led to too many loans in the wider personal loans market – a lending bubble. This has pushed interest rates down across the market. The Financial Conduct Authority is concerned – and I think rightly. In addition, RateSetter allows its inexperienced lenders to set the interest rates, with no minimum rates – at least none allowing any large margin of safety that have been apparent to 4thWay so far.
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pickles
Member of DD Central
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Post by pickles on Aug 22, 2017 19:45:40 GMT
Maths question:
Background
I'm at the back of the queue for the sell-out having put my request in on the last day. There are 29 days until I get the £100 bonus for being in for a year. Knowing my luck the account will be closed on day 28.
I have about £9000 left in the five year with four years to run.
Question
Would I be better off selling the standard way and taking the cost of early redemption, or taking the free sell-out and probably losing the £100?
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Post by dan1 on Aug 22, 2017 19:59:49 GMT
Maths question:BackgroundI'm at the back of the queue for the sell-out having put my request in on the last day. There are 29 days until I get the £100 bonus for being in for a year. Knowing my luck the account will be closed on day 28. I have about £9000 left in the five year with four years to run. QuestionWould I be better off selling the standard way and taking the cost of early redemption, or taking the free sell-out and probably losing the £100? Take the free sell-out I'd guess. Can you get an estimate for the sell-out fee done the normal way (I've just sold out so I can't log in to check!)? Average sell-out fee is 2.47% according to the info on their site, that's over double your £100 bonus. Assuming your rate is 5% you're earning about £37.50 per month.
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Post by stevepn on Aug 26, 2017 8:51:23 GMT
This could be the most interesting event in P2Ps history and how it plays out is going to be very interesting - thankfully from the side lines! Personally I think that offering this sellout is a big gamble for RateSetter unless they have someone with alot of capital underwriting the buyout. I suspect a large number of people have taken them up on the offer. I decided against cashing because mysteriously most of my 5 yr loans suddenly got paid back early and my biggest 3 yr loan finishes next year in January and after that it is all shrapnel paying out about £0.50-£2.50 a month but totaling about £120 a month so it will be to a lot of different borrowers. I am also sure that some of the higher paying shrapnel will get repaid back early.
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Post by diversifier on Aug 26, 2017 16:35:26 GMT
This could be the most interesting event in P2Ps history and how it plays out is going to be very interesting - thankfully from the side lines! Personally I think that offering this sellout is a big gamble for RateSetter unless they have someone with alot of capital underwriting the buyout. I suspect a large number of people have taken them up on the offer. I think (and now hope) that a large number of people *have* taken the offer. I've noticed something interesting on the "rate trends". It seems that the weekly lending volume has dropped from a fairly consistent £12M per week to £7M per week, for the last four weeks. When RS did exactly what they said they had, stopped a major lending outlet, and also sold to external finance, their sales volume seems to have dropped by 40%. If the same amount of investor money were chasing 40% less loans, rates would fall through the floor. So, if RS have judged their communication and action exactly right, they can get exactly 40% of investors to leave, and keep rates approx constant. This will leave an overall smaller but fitter platform. For me, it's: continue to hold 5-yr at older decent rates; don't reinvest (with a barge pole) until we see how this pans out; hopefully reinvest after some (possibly wild) swings in rate over the next couple months. I *still* think there's a possibility of a liquidity shock on Rolling, but I don't care personally as I don't see a solvency risk.
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Post by beeje13 on Aug 26, 2017 17:22:25 GMT
This could be the most interesting event in P2Ps history and how it plays out is going to be very interesting - thankfully from the side lines! Personally I think that offering this sellout is a big gamble for RateSetter unless they have someone with alot of capital underwriting the buyout. I suspect a large number of people have taken them up on the offer. I think (and now hope) that a large number of people *have* taken the offer. I've noticed something interesting on the "rate trends". It seems that the weekly lending volume has dropped from a fairly consistent £12M per week to £7M per week, for the last four weeks. When RS did exactly what they said they had, stopped a major lending outlet, and also sold to external finance, their sales volume seems to have dropped by 40%. If the same amount of investor money were chasing 40% less loans, rates would fall through the floor. So, if RS have judged their communication and action exactly right, they can get exactly 40% of investors to leave, and keep rates approx constant. This will leave an overall smaller but fitter platform. For me, it's: continue to hold 5-yr at older decent rates; don't reinvest (with a barge pole) until we see how this pans out; hopefully reinvest after some (possibly wild) swings in rate over the next couple months. I *still* think there's a possibility of a liquidity shock on Rolling, but I don't care personally as I don't see a solvency risk. If they wanted to get rid of 40% of lenders why have they continued offering bonuses to new customers? Also afaik they stopped (or at least started winding down) wholesale lending before the revelation of RS buying companies up. As this is not P2P it needed to change to get FCA authorisation.
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