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Post by robberbaron on Jul 5, 2017 14:37:13 GMT
Overall, Lendy gets more money from writing new business than it does from anything else. It can only write new business if it has sufficient lenders - whether that be retail, underwriters or bonds. This is somehow contradicted by the FAQ. According to this Lendy profits from writing new business AND paying as little interest as possible to investor (i.e. the spread). A fixed fee would be very different in terms of incentives. There is a certain amount of cost associated with running an SM, so I have no problem with Lendy retaining the interest. I personally have a problem with a platform which directly benefits from investments languishing on the SM or in default. None of the other platforms I use do this. This wasn't much of a problem when the SM was small and few loans were in default now it is.
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Post by robberbaron on Jul 5, 2017 14:23:34 GMT
The only problem with that is its short sighted. Make a fast buck now at the expense of making stable money in the future. No one would invest if they did this. Except it's already the case whether intentionally or unintentionally. Just look at the SM and default loans pages. A decade ago the crisis showed that short term profits can sometimes trump long term stable development. They seem to realise the liquidity issues are killing investment. To be fair they tried to solve an issue: there were not enough loans for everyone to invest in. So they created more loans, but that killed liquidity, which meant people weren't as comfortable investing. Unfortunately you cant have your cake and eat it. Solution is to not list anymore pipeline loans until SM is is tighter. Two ways of doing that: find more investors, or get loans to payback. Based on the recent sponsorship and increased referral incentives its disappointing to see LY efforts are on the former (poor move in my opinion) You will never have a SM in equilibrium without discounts and premia (e.g FundingSecure). An alternative to this is to have the unpaid interest on the SM accrue which would solve at least the demand side of the equation.
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Post by robberbaron on Jul 5, 2017 12:41:27 GMT
The way I understand it Lendy makes money in two ways: - It earns the spread between the interest paid by borrowers and the interest received by lenders.
- It earns the interest on loans for sale on the secondary market
However both are earned upfront since borrowers pay interest upfront. This means that Lendy has a financial interest in both an illiquid and bloated secondary market and not chasing "defaulted" loans since its capital is not at risk, it has already received its spread and interest to investors stop being paid out. To play devil's advocate the ideal scenario for Lendy would be a loan that is fully subscribed then fully put on the secondary market then defaults and stays defaulted forever. In this scenario Lendy would keep the entire interest payment, not pay a single dime to investors while never having it's capital at risk at any point. One way to realign Lendy financial interests with those of investors would be that it would stop receiving interest from loans on the secondary market and it would also have to keep a certain percentage of all outstanding loans.
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Post by robberbaron on Jul 5, 2017 12:15:51 GMT
From the website:
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Post by robberbaron on Jun 23, 2017 18:16:24 GMT
Nice idea... first time I've heard it. You buy a £1k loan part that's been on sale for a month and get a £10 bonus... sweet! [assuming 12% loan.]
It would certainly add liquidity to the SM but I cannot imagine Lendy forfeiting the benefit of the unpaid interest, especially when it amounts to £80k per month at present.
I made the same proposal last year so I wouldn't keep my hopes up.
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Post by robberbaron on May 25, 2017 13:10:30 GMT
As regards my strategy being reckless I would remind you that I have never lost a penny. Not everybody can say that. Therefore the evidence does not bear out your assertion. That doesn't prove anything. Pretty sure Madoff's clients and Dotcom bubble investors were patting themselves on the back for never losing any money until they did.
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Post by robberbaron on May 21, 2017 6:34:44 GMT
The best one at the moment is LISA, eligible for person aged 18-39, with free £1k from the UK government every tax year up to age 50. Personally, I would not transfer S&S ISA to IFISA due to charges and S&S ISA usually does better in return IMHO. LISA doesn't make sense if you are both a higher rate tax payer and not a first time buyer as you get a better top up by putting the money in your pension instead. As for your second point most S&S ISA will charge to transfer shares but not to transfer cash. It is impossible to know in advance whether shares or P2P will give you a better return unless you have a crystal ball. All you can do is diversify and minimize your costs and tax liabilities.
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Post by robberbaron on May 14, 2017 15:56:58 GMT
You can as I've done it many times and previous year ISA providers will typically try to get you to invest your current year subscription into the same account. I believe the reason for the pre-April 5 rush is that you lose your current year subscription if you don't use it but you don't have to open a new ISA. That's not investing in a previous year ISA though, the holding account may be the same but any money subscribed counts as part of the current year subscription. I am not looking to make a previous year subscription though. The question was whether or not we could split our platform risk by opening multiple IFISA this tax year, fund them with money transferred from S&S ISA from previous years and top-up the S&S ISA with the current year subscription. At the end of the day this should be equivalent to spreading your current year subscription across multiple platforms while staying within the ISA rules. I believe ozaz and others have answered this question with the affirmative.
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Post by robberbaron on May 13, 2017 12:50:19 GMT
You can't contribute to a previous years ISA. That's the reason for the pre-April 5 rush each year. You can as I've done it many times and previous year ISA providers will typically try to get you to invest your current year subscription into the same account. I believe the reason for the pre-April 5 rush is that you lose your current year subscription if you don't use it but you don't have to open a new ISA.
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Post by robberbaron on May 12, 2017 5:14:08 GMT
I don't think that would work. You can only subscribe this year's £20k to a 2017/18 ISA (or more than one if different types). Previous year's ISAs can be transferred in part or in full to new accounts that you happen to open in this year, but they are still previous year's ISAs. Not sure I understand why that wouldn't work. I was under the impression that you could pay your allowance into a previous year ISA and that transferring money from that ISA would not be considered as a subscription. Is it not possible to do both during the same tax year?
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Post by robberbaron on May 11, 2017 18:48:34 GMT
Does this mean that if we want to spread our allowance across multiple p2p platforms then the best approach is to transfer 20k from other ISA(s) to new IFISAs accounts then pay 20k into the old ISA account(s)?
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Post by robberbaron on May 11, 2017 16:23:01 GMT
Has anyone managed to transfer money from a S&S ISA (i.e. not a cash ISA) to an IFISA? If so on which plarform?
Just wondering how easy it is to do on different platforms.
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Lendy (L) in Administration
lower rates
Oct 31, 2016 12:55:38 GMT
via mobile
Post by robberbaron on Oct 31, 2016 12:55:38 GMT
Unfortunately, this looks like it's heading in the direction of setting interest rates for loans based on their size rather than based on their risk, and that's not a positive thing IMHO. Interest rates don't just reflect risk but also liquidity. As loans grow in size, more and more marginal lenders have to participate. The only way to incentivise them is to increase the interest rate if the risk stays the same. It's similar to a widget manufacturer having to drop his prices to sell to more marginal buyers if the quality stays the same.
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Post by robberbaron on Oct 13, 2016 8:51:50 GMT
tedious bremoaners meh as if the great Marmite crisis wasn't enough SS skimming more must be brexit Zzzzzzzzzzzz Guess you haven't noticed rates going down accross the board? Right go back to sleep that will make for an informed voter...
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Post by robberbaron on Oct 13, 2016 7:54:04 GMT
I'm fed up of hearing all this brexit horse s***! How do you know thing would of been different if we voted remain? You don't know, nobody knows so pipe down with your brexit this brexit that c***. If you don't like the idea of leaving Europe, your more then welcome to move over there when we are finally out, I certainly won't try and stop anyone, it will give my ears a brake from all the whining. Are you saying the BoE lowering rates and the yield curve following suit got nothing to do with Brexit? Personally I'm fed up of the economically illiterates trying to exonerate Brexit from lower rates or the crash in the pound.
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