dzo
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Post by dzo on Mar 12, 2017 16:55:30 GMT
By a climbdown, do you mean withdrawing it and reissuing at a higher rate? Is there any precedent for that? It would be quite embarrassing for SS, but it seems like DFL017 will take a long time to fill at the current rate, especially if a lot of people fail to pay for their loan parts as some here predict. Maybe SS will fund the rest themselves to save face. I just mean withdrawing it (thus indicating that large loans are going to be hard to fill on SS at anything less than 12%). As noted in my post above there is some precedent of loans being withdrawn because they couldn't fill. A rate change has never occurred on SS (the lower rates have only been about since late last year), but cashback was applied in the early days to encourage investors. Hopefully that will happen. If this one fills, it's hard to see why SS would ever offer us 12% again.
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dzo
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Post by dzo on Mar 12, 2017 15:18:45 GMT
They need a big repayment or a climbdown on DFL017 for the SM to settle. By a climbdown, do you mean withdrawing it and reissuing at a higher rate? Is there any precedent for that? It would be quite embarrassing for SS, but it seems like DFL017 will take a long time to fill at the current rate, especially if a lot of people fail to pay for their loan parts as some here predict. Maybe SS will fund the rest themselves to save face.
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dzo
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Post by dzo on Mar 11, 2017 20:43:54 GMT
What is the interest situation with overdue loans on FS? Does it continue to accrue, or does it stop once the loan passes term?
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dzo
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Post by dzo on Mar 11, 2017 15:10:47 GMT
I plan to open one, but my circumstances and motivations are quite different. Currently I'm paying the maximum into a Help To Buy ISA to get the 25% bonus. You can only contribute £2400 a year compared to the Lifetime ISA's £4000 limit so I plan to open a LISA and transfer my HTB balance into it. A potential gotcha with LISA's is that they have to have been open for at least a year before you can use them for a deposit so I'm planning to open one on 6th April with £1 and then wait till the end of the financial year before transferring my HTB into it, just in case I decide to buy before then. Once I've used mine for a deposit, I'll have to decide if I want to open another one. I'm not keen on having my money locked away until I'm 60 as I plan to retire long before that, but, as pom points out, it would only be around 1/5th of my ISA portfolio so I'd be unlikely to need it soon anyway.
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dzo
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FundingSecure (FS) in Administration
Newbie question
Mar 3, 2017 22:31:43 GMT
Post by dzo on Mar 3, 2017 22:31:43 GMT
When you sell a loan part the buyer pays your accrued interest, then they get the full interest when the loan repays.
Let's say you invest £100 in a 12% loan. If held for the entire 6 month term you'd expect to get £6 of interest. Now let's say you decide to sell after exactly three months. In this scenario, the buyer will pay your £3 on top of the purchase price to cover your accrued interest. The buyer will then get the full £6 at the end of the loan term.
This is all separate from any extra money you get by selling at a premium.
To answer your second question, it is fastest finger first but you don't usually need to be very fast. Some loans take weeks to fill.
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dzo
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Post by dzo on Mar 3, 2017 18:15:11 GMT
Ah, would explain the reactive dump on SM. Some investors seem to be continually surprised that one day follows another.
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dzo
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Post by dzo on Mar 3, 2017 18:12:59 GMT
I don't really have an issue with SS processing deposits/withdrawals the next working day.
If you time it right (i.e. just after midnight, or first thing in the morning) it gets done the same day, and nobody can transfer money in fast enough to take advantage of the fleeting opportunities on the SS SM.
It's a shame INPL had to go though.
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dzo
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Ablrate (ABL) in Administration
16%!
Mar 2, 2017 19:48:41 GMT
Post by dzo on Mar 2, 2017 19:48:41 GMT
blender hazellendDo you two know something I don't about upcoming loans? Last I hear we were promised unspecified new loans sometime this week.
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dzo
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Post by dzo on Feb 26, 2017 14:26:54 GMT
charles, Are there any plans to lower the £5000 minimum investment? I don't see anything on your site explaining in detail how your investments are structured. Do you have a FAQ? What happens to an investment in the case of platform failure?
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dzo
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Post by dzo on Feb 25, 2017 20:00:59 GMT
PBL136 paid out just over 5m , and this afternoon's buying totalled around 300k I think it was more than that because a lot of people took the opportunity to sell as well. I sold some of PBL073 but the amount left on the SM afterwards was about the same as when I put my part up for sale.
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dzo
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Post by dzo on Feb 25, 2017 18:18:45 GMT
Someone has just bought £4,079.00 of PBL020... I just... I'm.... <speachless> Diversification. You don't want all your money in non-defaulted loans.
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dzo
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Post by dzo on Feb 18, 2017 21:11:00 GMT
It's not that they are a lower rates because of lower risk, it's simply market forces and supply and demand. In theory that should be the same thing. It goes to show that people don't know what they're investing in.
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dzo
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Post by dzo on Feb 11, 2017 10:23:52 GMT
Working on the assumption that INPL-like features are no longer possible, I'd like to see Invest Now Pay Now. You could buy a loan part and then immediately authorise payment for it via debit card or similar. Until the transaction completes the loan part is still owned by the seller, and if payment fails it returns to the secondary market.
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dzo
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Post by dzo on Feb 10, 2017 17:53:41 GMT
Maybe I'm paranoid, but I have a theory that SS sometimes display SM loans on the withdrawal page that aren't on the Available Loan section to tempt you into keeping your money invested. Maybe they reserve a certain number of "good" loan parts for this purpose.
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dzo
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Post by dzo on Feb 10, 2017 17:08:48 GMT
And yet it will surely massively favour those who have found a way to beat everybody else to a loan part, be it by legitimate means or not. Whatever that might mean. Why? (I certainly may have missed something). Surely all it does is take some of the competition out of the market (ie. those without cash on their accounts), meaning those who DO have cash standing ready should have a better chance of success. The people who able to snap up loans within milliseconds of them appearing will be confident of being able to invest deposited funds. For everyone else it is too risky because you might not get the chance to buy anything.
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