dandy
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Post by dandy on Mar 6, 2017 9:57:27 GMT
Remember the golden rule of high-return P2P: Anything over 7%ish should be assumed to tend towards 7% over the long term.Interesting way of looking at it. I imagine it will be much lower moving forward, sub 5%
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dandy
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Post by dandy on Feb 10, 2017 9:26:07 GMT
Sounds like a terrible plan
Might be ok if platforms could opt in/out but if all platforms are forced in then rates would dwindle to barely above base rate
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dandy
Posts: 427
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Post by dandy on Feb 10, 2017 9:21:40 GMT
When it comes to the fund being under-funded, the cuts are percentage-based. A person receiving 6% is going to lose 3% of their return while one receiving 4% is only going to lose 2%. Just because they lent at different times one is made to pay more than the other even though the one paying more has loans that are placing a lower cost burden on the protection fund. It's a fundamentally unfair approach. Thanks james - but is this part actually confirmed? If so I agree it is unfair and deductions should be proportionate to investment not rates received. i.e. if investor A has £10,000 (at 6%) and investor B has £10,000 (at 4%) - then they should both have the same £ amount deducted. So if £100 contribution was needed from the two of them it should be £50 each not £66/£33.
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dandy
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Post by dandy on Feb 10, 2017 9:15:12 GMT
Sorry if this has been asked before but what is the term of any investment on Octopus Choice. I understand that funds are spread over a number of available loans but are these all for different lengths? If so, what is the longest term I could be tied in for? Also is there any fee to sell loans?
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dandy
Posts: 427
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Post by dandy on Feb 9, 2017 9:36:26 GMT
the chart is great and would be a good addition but my understanding is that we have all this info already positive day loans = interest still held from draw down/agreed extension negative day loans = SS paying interest I don't think you can guarantee it's that simple. I think it is subject to the odd outlier perhaps - and that SS includes SSBL I suppose
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dandy
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Post by dandy on Feb 9, 2017 9:14:49 GMT
the chart is great and would be a good addition but my understanding is that we have all this info already
positive day loans = interest still held from draw down/agreed extension
negative day loans = SS paying interest
default loans = no one paying interest
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dandy
Posts: 427
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Post by dandy on Feb 9, 2017 9:05:44 GMT
Whilst I understand the angst over these changes there seems to be a lack of fundamental tenet of investing. Your reward should be commensurate with your risk. Right. And that's why the correct strategy is to take this sell out offer. Then if you still want to be invested there, reinvest in new loans.The reason for this is the change in risk. If you have an old loan book, you've already lived through the time of high default rates and are now in the low rate period. This change will force you to take cuts due to the new and higher default rate loans, both due to them being new and to RateSetter increasing the overall risk level over time. Those with an extensive older loan book should be rejecting the increase in their risk level by taking the offer. I do not understand this. If you have existing loans at say 6%+ why would anyone want to sell out for free and then reinvest at 3-4% on newer loans? There is no difference in risk to lenders (between new/old loans) as risk is covered by the PF in first instance and where PF is depleted all lenders are pooled anyway. So surely it is like for like except for the rate. What am I missing?
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dandy
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Post by dandy on Feb 6, 2017 12:52:25 GMT
i think crowdstacker is what the FCA are getting at here. Raising £10m secured against £50m of assets. cough cough. misleading is putting it mildly
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dandy
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Post by dandy on Feb 1, 2017 21:55:24 GMT
if its conspiracy theories we are going with then how about all negative loan 'interest payments' are funded by and wrapped within a well diversified portfolio paying 6% kind of like a synthetic CDO2
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dandy
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Post by dandy on Jan 26, 2017 18:03:01 GMT
what are the classic and access rates changing to?
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dandy
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Post by dandy on Jan 25, 2017 12:35:20 GMT
New pipeline PBL - M*******, B********** Security : £460,000 Loan : £322,000 Rate : 8% LTV : 70% Term : 6 days (think that might be a mistake...) And DFL009 - Tranche 4 (£200,186) guess the mini bonds are rolling in ... weeeee
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dandy
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Post by dandy on Jan 23, 2017 10:08:52 GMT
if the investment is EIS (which it is) the valuation is effectively much less as you get 30% of your investment back through tax relief - for a start this reduces the implied valuation by 30%
you then get further tax relief if you "lose" the other 70% (company folds etc) of up to 45%.
so if you invest via EIS in a company that ends up failing you get back ~ 65% back in total
so if welendus has a valuation of £4m under EIS then you are effectively buying in at at £2.8m and possibly less (depending how the company fares) and PROVIDED you have sufficient tax bill to fully cover any relief - you also pay no CGT on any gains
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dandy
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Post by dandy on Jan 20, 2017 10:50:15 GMT
EasyMoney. com
"whenever you want"*
*in normal market conditions
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dandy
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Lendy (L) in Administration
Mini bond
Jan 18, 2017 14:36:11 GMT
Post by dandy on Jan 18, 2017 14:36:11 GMT
hi jonno I understood it is a 6% three year bond with interest paid quarterly this seems like Wellesley model in reverse (rates wise) Where did you read this? someone mentioned it to me but I cant find details on the website so cant be sure
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dandy
Posts: 427
Likes: 341
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Lendy (L) in Administration
Mini bond
Jan 18, 2017 14:18:18 GMT
Post by dandy on Jan 18, 2017 14:18:18 GMT
hi jonno I understood it is a 6% three year bond with interest paid quarterly this seems like Wellesley model in reverse (rates wise)
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