peteuk
Member of DD Central
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Post by peteuk on Jul 20, 2017 22:13:24 GMT
As i see it p to p in its fairly short life has gone through phases on different platforms at different times if you look at lendy at the moment while it was expanding quickly everyone was gaming the system selling short dated then buying long dated those days are gone, with a lot of people with there money stuck in sales queues at the moment earning no interest, more fool them, they should put in the effort and invest in loans that they believed were sound and to term. They must be worried to keep there money there endlessly , the only winner is lendy who do not have to pay any out in the sales queue. At the moment MT is flavour of the week , they seem to be about a year behind in the cycle, but given two or three defaults or problems the SM will sieze up just the same. So all i can say is if you are going to invest, invest not game
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 20, 2017 22:28:33 GMT
As i see it p to p in its fairly short life has gone through phases on different platforms at different times if you look at lendy at the moment while it was expanding quickly everyone was gaming the system selling short dated then buying long dated those days are gone, with a lot of people with there money stuck in sales queues at the moment earning no interest, more fool them, they should put in the effort and invest in loans that they believed were sound and to term. They must be worried to keep there money there endlessly , the only winner is lendy who do not have to pay any out in the sales queue. At the moment MT is flavour of the week , they seem to be about a year behind in the cycle, but given two or three defaults or problems the SM will sieze up just the same. So all i can say is if you are going to invest, invest not game Yes, and unfortunately, now when you may have a genuine need to sell, you'll have been scuppered by The Gamers.
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freddy
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Post by freddy on Jul 21, 2017 3:50:50 GMT
Although I recognise the issues that selling short and buying long can create on a SM, i don't consider this gaming a system. Sure good DD should allow you to hold a loan to term but getting your money released a month or two before maturity with a better opportunity to reinvest long with less competition is not a terrible strategy and obviously works for some. It's one of many approaches to P2P lending but hardly Gaming.
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elliotn
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Post by elliotn on Jul 21, 2017 6:04:10 GMT
Deal flow is a bit up and down so one risk of selling before term is staying invested and losing diversification and missing out on the bulk of a renewal (and possible extension rate increase). Everyone selling out at the same time would obviously reduce SM liquidity and could undermine the strategy.
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daveb4
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Post by daveb4 on Jul 22, 2017 6:33:29 GMT
If a loan outstanding 12 months you have 365 days of risk (company going down). if you keep to last day and everything has been fine it is only one day of risk and you have earned 12 months of interest? This is what P2P is about, balancing risk. Not sure the logic totally works but I will put it out there!
Agree with fact there is some logic to cash out short term and invest long term to keep cash invested.
Developments risk is usually at start and end - keep an eye on updates and increase/reduce as and when (some sites better than others with this) - care here though as usually if not good update surprise everyone does the same thing!
Time - If experienced and diversified well into good loans should be able to let things run. If not experienced and totally scattergun then risk higher on defaults and possibly worth some more proactive trading, this takes time and therefore you could just let things run and 'hope' you have some luck on your defaults.
Deal flow can be up and down - eg next two months and Christmas with solicitor/valuer/builder holidays based on past experience (no guarantee of future performance!), deals will probably be fewer, more cash around especially 1st monthly and therefore secondary markets will probably (again) start reducing as spare cash needs to be used. March, lots on secondary market as swapping between ISA's etc so bad to sell and good to buy. April good to sell as lots people buying to put into new ISA's.
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