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Post by extremis on May 11, 2017 18:34:16 GMT
Well, it would be great to have portfolio priorities. I am constantly deactivating - reactivating my portfolios in order to get the loans i want, but with priorities i think much less management would be necessary.
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Post by extremis on Apr 11, 2017 15:32:39 GMT
What about the other way round? Will there be any change (after Brexit) for European investors currently investing, or planning to invest in UK based p2p platforms?
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Post by extremis on Mar 16, 2017 15:20:20 GMT
What happened to the loans list? I am not registered with Twino, yet i used to be able to see the loans offered. But not anymore. I was thinking about moving some money from Mintos to Twino, since Mintos buyback guaranteed loan interest rates have recently plunged, but i am not so sure interest rates will be any better in Twino. What are the current rates for short/medium term loans (<12 months)? Is there sufficient supply?
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Post by extremis on Mar 12, 2017 18:11:46 GMT
Mogo's car loans without buyback guarantee (along with Hipocredit loans) still offer a decent interest rate. The problem is, of course, the high risk associated with them. The risk is partly mitigated by collateral, but LTVs are usually too high and collateral's (vehicle) value quickly depreciates with time (not to mention ridiculously high collection costs). I think Mogo should provide us with more information on the borrowers' financial state. At the very least, income, total liabilities and occupation should be listed. Nord Lizings provides such info and even Banknote that offers buyback guaranteed loans gives some information on borrowers' financial state.
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Post by extremis on Mar 12, 2017 15:14:58 GMT
Robocash seems very interesting; unlike some other platforms where the owner(s) is well hidden, with Robocash not only we know exactly who is behind it, but he is very responsive to investors' questions/comments too. I think that's important for building the necessary trust. Also, they offer loans in countries not usually served by other p2p platforms. Maybe it is too early to join (i would like to see some statistics and financial reports first), but it is definitely in my watch list.
Just a question out of curiosity though: why the platform is based in Latvia? AFAIK, they are not issuing any loans or having any other business in Latvia. As a matter of fact, in the last couple of years there are many p2p lending platforms based in Latvia, is a particular reason for it? Don't get me wrong, (for some inexplicable reason) i have always loved Latvia, it is just that i don't understand how it has suddenly evolved into the Mecca of p2p lending.
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Post by extremis on Mar 2, 2017 0:32:14 GMT
I was expecting a hike, but not by that much and not so soon. So those 17%'ers now look more like 10% over a single year. And that is without taking into account the (likely) depreciation of GEL against EUR. I had suspected that from the beginning, so i resisted the temptation to make a currency exchange and buy those 17% Georgian loans.
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Post by extremis on Feb 18, 2017 23:16:07 GMT
Well, there are several Georgian personal loans with 16% interest rate, but these are in GEL, not EUR. Then, of course, there is the currency risk. Also, supply of Georgian personal loans seems to be rather low these days.
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Post by extremis on Feb 18, 2017 16:00:59 GMT
The only issue you might run into, if you're UK-based, is transferring money cheaply to Twino. If you are going to invest in Euros, you should open an account with Revolut and probably another account with PaySera which will give you a Euro IBAN account of your own (after you've verified your account). Revolut provide the interbank currency exchange rate for free (except at weekends, when you will pay a 0.5% contingency charge, so exchange sterling to Euro on a weekday). From Revolut you can send the Euros for free to your PaySera account. From PaySera you can send the Euros on to Twino for a €0,50 charge (if memory serves me), and Twino will see the Euro transfer as coming from an account in your own name. Is Paysera safe to use? I have seen some terrible reviews on Trustpilot: www.trustpilot.com/review/www.paysera.comThey advertise a 0.2EUR fee for outgoing transfers. Also, are you sure Twino accepts money sent from a Paysera IBAN account? I asked Investly about this some time ago and they replied they are not sure they can accept money from Paysera even if a personal IBAN is used (they recommended a normal bank wire transfer).
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Post by extremis on Feb 13, 2017 9:40:55 GMT
JamesFrance, i find it annoying too, but what can we really do? It is a free market after all. Of course it is good to see that most investors do not buy at very low rates, but there will always be some inexperienced ones that do (lets hope they only cover a small part of the loans issued). And loan originators want to profit from them. In the long run p2p rates will go down, as more and more investors join the party. If this is accompanied with lower risk (stricter p2p regulations, larger platforms and loan originators, a compensation scheme for p2p perhaps?) then it is just fine imho. But what we see right now is that rates are constantly getting down while the risk remains roughly the same. We should all put our personal limit and stick to it and not be fooled by those loan originators tricks.
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Post by extremis on Feb 12, 2017 16:12:33 GMT
I prefer the loans with buyback. Sure, but personal loans interest rates are in free fall these days.. Would you still buy loans with buyback guarantee if they only have 1 digit interest rates?
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Post by extremis on Feb 3, 2017 13:15:39 GMT
Yes, they can do it and they will (maybe already have) possibly do it to benefit from the declining interest rates. However, i don't think it is a major issue for personal loan originators (like Creditstar) since personal loans are mostly ultra short term. Also, personal loans have high default rates, so originators will exercise their buyback obligations anyway. It would make more sense for mortgage loans (or maybe car loans) to profit from reduced interest rates since these are usually long term. I remember, in the beginning there were Hipocredit loans with 18-19% interest rates and 10+ years duration. If such loans are bought back and re-issued with a couple of years paying history will easily get filled at much lower rates. (Hope loan originators will never ever read this thread).
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Post by extremis on Feb 1, 2017 22:00:32 GMT
We need more data on loans without buyback guarantee. Exactly. Information on buyback loans is not very important, but on loans without buyback is crucial. I have already asked Mintos and their reply was that Loan Originators do not provide any additional information. Well, Nord Lizings does provide some additional information on borrowers: monthly income and liability. This is a most welcome addition from Nord Lizings. Of course, they could also give information on borrower's family status, number of working years, education, etc. But it is certainly a step towards the right direction and towards 'real' p2p as mentioned elsewhere in this forum. The only problem is interest rates that are quickly declining. I would expect 15% AND as much additional information on borrowers as possible for non buyback guaranteed loans, or 12%+ for buyback guaranteed loans.
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Post by extremis on Feb 1, 2017 13:38:32 GMT
AND long term, i may add. Anyway, it is always good to have a new Loan Originator on Mintos platform; hopefully someone will find their loans attractive and get a piece of them.
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Post by extremis on Jan 28, 2017 21:10:43 GMT
However, I think the statement about it being utterly a claim against the company, is false. Unless the contracts and terms written up by the platforms are not legally binding. I'm not an legal expert so can't make any claims on this though. If we assume that the contracts and ToUs are legally binding, then as mentioned earlier, Twino claims that you will start receiving the full interest rate if the company goes bankrupt, so in essence what matters, is the underlying credit risk as well as the platform risk. In Mintos however, the last information I heard was that you will continue having same interest rate and difference will be used for collections/other fees. So in that case I think they're partially right, the originator risk is the main risk to look out for. However, even here, the loans are supposedly yours in most cases and not assets in bankruptcy, so the credit risk plays a role as well. I think the point here is not whether the contracts are legally binding or not. Let's assume they are and the loans are really ours in case of a loan originators default. Let's also assume that the borrowers learn that the loan originator has defaulted and think they can get away without paying, so they stop making any future payments. What then? According to Mintos a third party will take over. Here comes the critical question: what will they do? If they receive a loan book with 10K loans with outstanding principal 50-100E each will they take all 10K borrowers to the court? If that was even possible, why the loan originators do not take this course of action? As far as i understand loan originators basically write off any debt covering their losses from the huge spreads on performing loans. Is there any reason at all to believe that this third party will have the expertise and resources needed to do any better in case the borrowers stop making any payments? My point is legal matters is one thing but what happens in practice is another. ps. Excellent paper, i totally agree that we take a far too great risk for the rewards. But what else is there? Investing in stock market is also risky for inexperienced investors, while banks offer virtually zero rewards today and are not as safe as they used to be anymore.
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Post by extremis on Jan 25, 2017 22:19:02 GMT
They supposedly changed the structure in a way that you have the claim against the specific loan even in case of bankruptcy. Not really sure how watertight that structure legally is though in the bankruptcy process. I'm not a legal expert. Does this also apply to Banknote? I thought it only affects Hipocredit
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