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Post by yoica on Jul 29, 2017 6:04:43 GMT
And why do you think Eurocent got in trouble? We don't have details, but the borrowers not replaying their loans is most likely a large part of the reason. If they are not repaying their loan to Eurocent do you truely believe you will get something after Eurocent goes bust? On paper you are correct in saying that having a claim directly to the borrower is better, even for unsecured loans. In practice I have serious doubts you'll notice any difference between the 2 constructions.
That is the reason I'm saying the risks aren't that different.
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Post by rahafoorum on Jul 29, 2017 6:29:36 GMT
And why do you think Eurocent got in trouble? We don't have details, but the borrowers not replaying their loans is most likely a large part of the reason. If they are not repaying their loan to Eurocent do you truely believe you will get something after Eurocent goes bust? On paper you are correct in saying that having a claim directly to the borrower is better, even for unsecured loans. In practice I have serious doubts you'll notice any difference between the 2 constructions. That is the reason I'm saying the risks aren't that different. Investors from Trustbuddy have received recoveries because they have claims on the loans and the loans are not assets in bankruptcy. Without that claim, I wouldn't be too sure they'd be getting that money because the company can have other liabilities as well.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jul 31, 2017 22:48:18 GMT
On longer term BB loans, those who don't pay tend to default early and those that pay for a while tend to continue to pay. This means that when the loans cycle through you tend to get a good proportion of loans that are repaying and have already made several payments while the poor ones disappear. This is reflected in my current Lendo portfolio, although it is not as stable as it looks because 30% of the current are fairly new and part of the BB cycling:
Current 57
1-15 Days Late 4
16-30 Days Late 1
31-60 Days Late 1
In the old structure at least you would end up with a decent proportion of claims that stand a chance of continuing to pay. I'm exiting Lendo and have disabled my auto investor. The question for me is whether to sell the existing ones and lose the 1%, let it run down or something in between. The longest ones are 11 months and the average is around 7 months.
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Post by mopcku on Jul 31, 2017 23:03:06 GMT
On longer term BB loans, those who don't pay tend to default early and those that pay for a while tend to continue to pay. This means that when the loans cycle through you tend to get a good proportion of loans that are repaying and have already made several payments while the poor ones disappear. This is reflected in my current Lendo portfolio, although it is not as stable as it looks because 30% of the current are fairly new and part of the BB cycling: Current 57 1-15 Days Late 4 16-30 Days Late 1 31-60 Days Late 1 In the old structure at least you would end up with a decent proportion of claims that stand a chance of continuing to pay. I'm exiting Lendo and have disabled my auto investor. The question for me is whether to sell the existing ones and lose the 1%, let it run down or something in between. The longest ones are 11 months and the average is around 7 months. This is very interesting conclusion which i didn’t thought of and it also brings new interpretation of the differences between BB and PG in the Twino case.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Jul 31, 2017 23:16:05 GMT
A missing piece of vital information for me is whether this structure affects the existing claims. From the blog it seems to indicate that it doesn't. If that's the case I'd be happy to let it run down on its own because my weaker loans will disappear pretty quickly. I think I'll email them to check.
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kulerucket
Member of DD Central
Posts: 336
Likes: 93
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Post by kulerucket on Aug 1, 2017 7:20:56 GMT
FYI
Mintos Support: "These changes will apply only to loans which will be listed on our platform after 3rd August. All the rest loans has the same structure and assignment agreements."
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Post by sansin on Aug 13, 2017 12:53:31 GMT
Lendo's equity and Non performing ratio (both in amount and percentage)?
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