dandy
Posts: 427
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Post by dandy on Jul 18, 2017 13:48:24 GMT
I was wondering what they would do with their recent £13m raise ... not sure what the £12m issue is but would seem that RS covering it (whatever IT is!) is very much in investors favour. £12m is a big price to pay to maintain that no investor has ever lost a penny www.p2pfinancenews.co.uk/2017/05/30/ratesetter-artemis-woodford/
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 18, 2017 13:52:00 GMT
No email for me either. I must admit my curiosity is piqued. I wonder why they should email some investors and not others? Perhaps it is because I am only in the 5 year market and have only been withdrawing for many months. That's what I am doing. My email said that one or more of my loans is matched with one or more of the listed borrowers.
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clay
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Post by clay on Jul 18, 2017 13:54:34 GMT
What I'm most concerned about is Ratesetter itself borrowing money from the markets, and that's effectively what's happening here. If they've taken over A Ltd entirely then the £8.5m in debt owed to Ratesetter Lenders is sat on their balance sheet, and I feel like that crosses a line.
I'm also a little confused as to whether the £8.5m is included in the £31m that the VSL/VCL loans are "secured" against.
My gut reaction is to get out, although I said that last time and in the end didn't bother.
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jlend
Member of DD Central
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Post by jlend on Jul 18, 2017 13:56:40 GMT
No email for me either. I must admit my curiosity is piqued. I wonder why they should email some investors and not others? Perhaps it is because I am only in the 5 year market and have only been withdrawing for many months. I'm in the rolling market and didn't get any email. Maybe it's for people in the 1 year market? It's strange they haven't emailed everyone because it seems like quite big news. Applies to everyone by the look of things: "We are giving everyone, not just the lenders who are matched to these specific borrowers, the opportunity to review their investment, as all investors are exposed to the performance of the loan book as a whole. Our records show that today (18th July) you are matched to a loan with one of these borrowers. The Provision Fund effectively spreads each lender’s risk across the whole loan book, you are exposed to the performance of the book as a whole - not that loan specifically.
If you would like to sell out of your investment with RateSetter without incurring a fee, please email us at investoroption@ratesetter.com. This offer will last for one month, from 18th July to 17th August 2017. We would like to point out that sell-outs are always subject to there being other funds in the market to replace funds withdrawing from loan contracts."
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Post by argh on Jul 18, 2017 14:32:25 GMT
I just received the email from RS. I'm not matched to these borrowers. Probably being sent in batches with people who did have these loans receiving email first.
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Post by takeshi on Jul 18, 2017 14:39:16 GMT
I was wondering what they would do with their recent £13m raise ... not sure what the £12m issue is but would seem that RS covering it (whatever IT is!) is very much in investors favour. £12m is a big price to pay to maintain that no investor has ever lost a penny www.p2pfinancenews.co.uk/2017/05/30/ratesetter-artemis-woodford/ I don't think there is a £12m loss as such - there was a £12m loan to this company, this has subsequently been paid down to £8.5m, and continues to decline monthly. Should there be any loses RS will settle them rather than the PF??
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elsee
Member of DD Central
Retired:D
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Post by elsee on Jul 18, 2017 14:39:28 GMT
I didn't take the previous "get out of RS free card" but I think that I will this time. A lot of my 6.2% loans finish next year so I'm much more tempted this time around too.
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jcb208
Member of DD Central
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Post by jcb208 on Jul 18, 2017 14:49:56 GMT
I'm tempted as well but still averaging 6.1% in the 5 year market and already over my investment limit in property so need to think where I will invest If I decide to bale out
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Post by hammerman on Jul 18, 2017 14:51:02 GMT
It seems like RS have made some very poor lending decisions. Companies go bust all the time but to lend that amount of money and 2 years later be in a position where they've had to take over the company to save face and not unsettle investors is worrying. There is inherently risk in any lending but investors must surely feel uneasy at the level of exposure to a handful of companies here.
You have to worry about what would happen in a tanking economy, if the PF was wiped out by just a couple of poorly judged loans then it would be utter carnage if the regular smaller loans were defaulting more regularly also?
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nairda
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Post by nairda on Jul 18, 2017 15:08:19 GMT
Mrs N has been running her account down for some time due to the high sellout fees. Although she has quite a few loans at 6% we think it is sensible to take advantage of this free sellout offer. Our trust in Ratesetter has been badly shaken of late and this latest little fiasco is the final straw.
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 18, 2017 15:13:51 GMT
I think that I will move my RS money to Archover, 6%-9%, 1-3 years, secured and insured or secured and assigned, and according to the homepage "No Borrower defaults, No late payments and No losses". Downsides are minimum £1k per loan and quite a few loans to the same companies and so not easy to get diversified.
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Post by bracknellboy on Jul 18, 2017 15:14:12 GMT
Assuming I am reading this correctly: "....As lending this amount to a single business was outside RateSetter’s credit policy and was an exceptional case,"
looks rather worrying. Governance anyone ? Or am I misinterpreting ?
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dermot
Member of DD Central
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Post by dermot on Jul 18, 2017 15:15:11 GMT
If there is no effective impact on borrowers, one wonders why this is on offer.
It may be just an excuse to get rid of those of us receiving 6%+ to bail out in favour of new lenders willing to lend at under half that.
Staying in is very tempting for diversification reasons, but pulling the lot out, and splitting between cash and higher return p2p platforms would give the same effective return with a rather different safety profile.
I'm minded to stay in, but will give it some thought. I do still like the automatic weekly repayment option, which is very convenient for income supplementation - given no small amount of laziness on my part.
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pablo77
New Member
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Post by pablo77 on Jul 18, 2017 15:35:49 GMT
Hey!
Could you copy me this email plz as I haven't got it yet?
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bramhall17
Member of DD Central
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Post by bramhall17 on Jul 18, 2017 15:36:54 GMT
I'm predominantly enjoying 6%( 5Y) so minded to stay in . RS is only some 20% of my P2P portfolio and I certainly don't want any more property project risk and my Funding Circle strategy of bias towards half paid back B2B loans seems to be holding up with net 5--6 % overall. However, with an uptick in the delinquency rate I don't want to invest more there. Cash with inflation at circa 3% is not attractive -- so not that many options, given I'm already heavily invested in equities and corporate/infrastructure bonds.
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