dzo
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Post by dzo on Apr 26, 2017 21:20:22 GMT
This is true on every platform. Smaller loans suffer from a lack of supply, but there are plenty of people who want a little bit of every loan. Good point, and not something I'd considered.
Although, when 'buying the market' then I'd expect the investment in each loan to be in proportion with the loan size. Perhaps they're limited by the minimum pre-fund or similar.
I can't imagine there are many people trying to accurately track the market, but there's probably quite a lot who want to buy the same fixed amount of every loan that meets their criteria.
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dzo
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Post by dzo on Apr 26, 2017 20:51:18 GMT
I like premium/discount on FS, but it does make things more complicated.
Lendy's at-par SM worked very well until recently. The new IOA/SBL/IA/DEF system is clearer, but it seems to make people keener to offload their old loans.
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dzo
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Post by dzo on Apr 26, 2017 20:37:43 GMT
At the moment, for the available 12% loans with positive term (all now less than 80 days), it seems to be the smaller loans are now the most popular.
This is true on every platform. Smaller loans suffer from a lack of supply, but there are plenty of people who want a little bit of every loan.
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dzo
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FundingSecure (FS) in Administration
Launch of IFISA
Apr 26, 2017 20:11:48 GMT
Post by dzo on Apr 26, 2017 20:11:48 GMT
I would prefer not to have funds sitting idle To try to combat this, I was wondering if there was a limit to the number of ISA transfers you can make from previous years allowances, say from a cash ISA to a IFISA? My theory being to transfer funds as and when they were needed Obviously I would try not to abuse the system to cause excessive admin for a platform, but would say once a month transfers be allowable? I realize that some IFISA's are not flexible and plan for this Thanks! This is why flexibility is a much bigger benefit than most people seem to realise. Imagine if you'd transferred a lot of money into a hypothetical Money Thing ISA earlier this year. It would have been sitting idle for months.
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dzo
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Post by dzo on Apr 26, 2017 20:04:22 GMT
You can do that anyway with DFL tranches. Just sell the old tranche before you have to pay for the new one. Do you know that works as fact? In the days of INPL on the SM, I inadvertently bought something that I already had my full exposure too. I didn't realise until the following day when reconciling my account but I couldn't sell the bit I bought due to the 7 day rule so sold some of my already held loan part. At the end of the month, I didn't receive double interest for that loan for that day, the system somehow identified that I'd bought and sold parts in a loan that wasn't fully paid for and subsequently reduced my interest payment for those unpaid parts. I've never gone as far as to check for double interest. I just assumed it was paid.
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dzo
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Post by dzo on Apr 26, 2017 6:11:02 GMT
They need to ensure there are people around to fund things - there is nothing wrong with buying loan parts and planning to sell them on - it is the nature of the beast, the risk being you are going to get stuck with them at some point. Why would Lendy care how people run their accounts? If you are allowed, say, 48 hours to pay for your loans you could churn loan parts with a negative balance during busy go live periods and earn interest without paying for them. You can do that anyway with DFL tranches. Just sell the old tranche before you have to pay for the new one.
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dzo
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Post by dzo on Apr 25, 2017 17:51:32 GMT
Jake Wombwell-PoveyI don't know if I should be interested in Goji or not because there is so little information on your website! How do your bonds work? Do you have different levels of risk with different rates? What are investors rights if the underlying loans default? What happens if Goji goes out of business? Does your IFISA have any fees? Is it flexible? Why should I pick Goji over the alternatives?
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dzo
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Post by dzo on Apr 23, 2017 15:07:43 GMT
I think basic common sense says that HMRC are unlikely to tolerate it. Otherwise it would be possible set up a platform for the sole purpose of abusing the loophole - imagine FS but with bids as well as offers and no limit on discounts. If FS are liable, as Liz says, maybe we should all be making hay while the sun shines, but I wouldn't want to take the risk.
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dzo
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Post by dzo on Apr 23, 2017 14:16:50 GMT
fundingsecureCould you tell us what your understanding of this issue is? Is it ever okay to buy your own loan parts? Have you considered the possibility of people using this as a way to boost their ISA allowance?
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dzo
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FundingSecure (FS) in Administration
Launch of IFISA
Apr 23, 2017 14:04:04 GMT
Post by dzo on Apr 23, 2017 14:04:04 GMT
I wished FS had just not allowed members to buy their own loans, it would have simplified things. Or if they agreed with HMRC that we could buy our loans, they should have said so. This could be one big mess. I agree that if they have advice from HMRC saying its alright they should tell us. It surely can't be within the rules though because that would mean there's no longer any ISA contribution limit.
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dzo
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Post by dzo on Apr 23, 2017 13:57:50 GMT
Agreed. The people doing this are being very silly - they'll be lucky if FS don't report them to HMRC. Aren't FS at fault for not telling members as ISA manager that they can't buy their own loans? FS could be in the sh*t here not members, who don't have contact with the FCA and can't be expected to know the ins and outs of ISA rules? You buy a S&S ISA of Cash and you follow the rules you are told, you don't go to HMRC to do intensive research to check your ISA manager is correct.Buying ones own loan parts at par or 4% pis the same crime. Buying ones own loan parts at par or 4% discount is the same crime as buying at 4% premium. I'd say people who are blatantly gaming the system (e.g. cycling loan parts between accounts at -4% and +4%) know what they're doing and that it's not allowed. Having said that I'm surprised FS didn't just block people from buying their own loan parts to save themselves the trouble.
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dzo
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Post by dzo on Apr 23, 2017 13:40:25 GMT
Such a big change in sm habits since the ifisa was announced. Parts traded at par to .5% premium suddenly listing for silly discounts for moments b4 being snapped up. Queue the bots with a little reprogramming. fundingsecure have the data for this internal sales activity and should take action accordingly. Agreed. The people doing this are being very silly - they'll be lucky if FS don't report them to HMRC.
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dzo
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Post by dzo on Apr 21, 2017 21:14:39 GMT
Why are people willing to risk breaking ISA rules to transfer their loan parts? If you really are buying at market value, then you could just buy a part of the same loan from someone else.
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dzo
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Post by dzo on Apr 19, 2017 20:53:36 GMT
/mod hat off Yes, it's nice to have clarity of what LfSS are planning to do; +1 brownie point. But .. what they are planning to do is grossly stupid (I wonder if the FCA requested it?), so -10 brownie points for expecting lenders to magic up 2x the money for a few days, then have to find some place to put it back. The pipeline / deal flow (on P2P in general) is already 'lumpy' enough without adding artificial speed bumps. It also unwinds any BH's position which they might have built up over time. Sorry, but the MT approach is just so much saner .. Yes the MT approach is much better but unfortunately there is an ongoing new loan drought on MT. Opportunities we were expecting in the middle of this week have thus far failed to materialize leaving us frustrated and that is one reason why people continue to be so attracted to LfSS despite their various shortcomings, and why investors continue to be so forgiving. If MT had the same level of deal flow as this platform then LfSS would have a big problem with fleeing investors. I don't think it's just deal flow. Lendy is much more approachable for newbies due to pre-funding and a more professional looking website. FS have even stronger deal flow than Lendy, but they're having to offer 14% plus cashback and bonuses to attract investors.
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dzo
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Post by dzo on Apr 19, 2017 20:37:55 GMT
Maybe some people assume there must be something wrong with the loans others are selling.
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