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Post by kissmyjazz on Mar 23, 2016 7:07:02 GMT
I am sure there are people keeping a 20k-50k balance on their account just to jump the queue and reselling all interesting loans at 0.5-1% premiums every time they come up. Yes, they don't have 20k-50k fully invested but they get constant access to all the best loans and make a huge annual percentage on the small amount invested at any one time by constantly flipping. Once they sell, the profit increases the current account balance further, further enhancing their position in the queue.
What is this huge annual percentage they gain? If you have any facts, please share them. It is important to maintain liquidity in the SM and if some investors are buying from flippers, it is because they believe they are making a good investment despite the premium. Information costs money, so the loan with the good payment history is more valuable than the loan without any payment history. Initial investment therefore carries more risk than investment later in the loan cycle and it is only fair to ask some premium for that information.
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Post by kissmyjazz on Mar 23, 2016 6:57:50 GMT
Nobody has to buy from flippers, if there is no buying they will be stuck with their loans for 5 years. Let the market sort itself out, there is no need for any restrictions on selling or buying. There are enough primary market loans available for everybody.
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Post by kissmyjazz on Mar 14, 2016 12:33:08 GMT
I think there are only two viable strategies: either sell all defaulted loans that show no cashflow as quickly as possible for moderate discounts and reinvest the money to recoup your losses or run your portfolio down the natural way and try to sell only clearly hopeless loans at big discounts (80-90%). I think there should be no argument that you should keep your current loans as long as possible and not sell them at par, only at premium. They bring you positive income and as long as each individual loan stays current and pays with good discipline, it does not matter if the loan was originated in Estonia or Elbonia.
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Post by kissmyjazz on Mar 12, 2016 16:21:25 GMT
I think that for the most loans the best strategy is to wait until the loan matures (for Estonian and maybe Finnish loans the recovery is decent, but even with that recovery you will not be made whole 100%, as some people are declared bankrupt, die, commit fraud or have no recoverable assets). For Spanish loans I would sell them now with discount up to 40-50%, if you cannot sell at that price, I would just keep the loan and hope for recovery, Estonian loans I would start selling at 10% discount and go until 30%, Finnish maybe 20-40% is acceptable haircut, if I cannot sell at those discounts, I will wait for recovery. Also consider that average haircut on DCA-assisted recovery is 15-20%, so if you sell with up to 20% discount, it is basically a wash. Anyhow, you'll be surprised what people buy and sell. I definitely have sold some pretty shitty loans for good price. If you decide to stay long-term on the platform, it is better to reinvest the proceeds, otherwise try to liquidate quickly and move some place else. Your money is better off earning some interest, not waiting for recovery.
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Post by kissmyjazz on Mar 12, 2016 15:45:36 GMT
Defaulted loans bring you very little in terms of the incoming cashflow, as any recovery is usually a long process. So unless you want to sit on your bad loans for full 5 years, sell them first, likely with 20-40% discount. Meanwhile while you are selling your bad loans good loans will bring you interest income that will (partly) cover the losses on bad loans. Bad loans tend to default early, so the longer your loan has stayed current, the less chance of the default. Of course you have to monitor the payment discipline, if it was good before but has become erratic recently, try to sell that loan.
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Post by kissmyjazz on Mar 12, 2016 13:00:34 GMT
Significant in a sense that people find it a significant topic to start the discussion. From my personal experience I have made three withdrawals in total, the first two were processed within 1 business day, the last one took two business days (it was two weeks ago). For me personally this was not a significant change, but apparently something has changed as this forum topic was started. Of course it can all be hearsay and nothing has really changed, but the fact that Jevgenijs is not as active here anymore to clarify the situation is not helping.
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Post by kissmyjazz on Mar 12, 2016 11:38:23 GMT
Isn't it kind of obvious that they experience some issues? If Twino were happy with the transition to the lower interest economy, they would have kept them at 10%. They happily announced how they need to pay lower interest rates to investors to expand into market for prime borrowers. They also said that they want to simplify investing even more and every loan would be at 10% no matter the loan duration or the country of the borrower. Three weeks later they have reversed they own strategy and increased interest rates on Georgian loans selectively to 12% also citing the need to expand their offerings for prime borrowers. - Twino had a "bug" that made them repay a number of longer term loans prematurely without getting paid by the borrowers yet. - The number of the loans offered on the primary market has increased about two-fold since lowering of the interest rates, so they are selling out slower than before. - Communication from Twino with investors has deteriorated - Some investors report significant delays with the bank transfers
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Post by kissmyjazz on Mar 12, 2016 0:20:19 GMT
It seems that Twino has some liquidity issue. Too many investors are withdrawing money now whilst they prefunded a lot of loans that are significantly slower at selling now on the primary market. I am glad to have withdrawn all my funds from there and will stay away for now, 12% loans will not entice me back.
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Post by kissmyjazz on Mar 4, 2016 1:07:32 GMT
Did you buy a bond from Creamfinance? Then you have to wait until it matures, I doubt there is any liquid aftermarket for those type of junk bonds. 12% default rate is nothing out of the ordinary. Bondora loans have higher default rates and it is still somewhat profitable investment platform.
Mintos has liquid secondary market, invest through Mintos. Usually there is no problem to unload your loans quickly.
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Post by kissmyjazz on Feb 19, 2016 14:46:56 GMT
He did use the wording nearest future, damn those marketing guys and their weasel phrasing.
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Post by kissmyjazz on Jan 25, 2016 0:34:53 GMT
Official expected returns on the PMs keep falling. Soon Bondora's expected return will be in line with Mintos and Twino, but with a significantly riskier loan book. I guess their Spanish and Slovakian escapades are catching up with them and it will become only uglier as Rahafoorum has predicted.
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Post by kissmyjazz on Jan 23, 2016 9:12:03 GMT
Holy smoke, my imaginary wealth has dropped faster than the Chinese stock exchange. It is still positive, somehow. Attachments:
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Post by kissmyjazz on Jan 11, 2016 6:16:16 GMT
Hm, so I guess Bondora still expects some additional recovery for that loan. I know that I cannot list loans on sale that were paid more or less in full by the court decision and have passed into stage 5 as a result. Maybe of course it was paid in full but Bondora's interface is not handling DCA fees correctly, if at all. You better ask CS for clarification.
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Post by kissmyjazz on Jan 11, 2016 4:42:28 GMT
Can you still put this loan on sale? If this is a true stage 5 case, then loan should not be sellable. Looks like some mistake somewhere in Bondora system.
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Post by kissmyjazz on Nov 12, 2015 7:17:22 GMT
I honestly have not noticed that Creamfinance loans are so demanded. Sure, there are investors who prefer liquidity, but for many it is a nuisance to reinvest every month, especially since the interest rates have been slashed. Yesterday morning there were hundreds of Creamfinance loans on the market which become 0 in the evening. So who did buy all that loans but did not invest in a pretty good 14.4% mortgage loan on the primary market that is still available, institutional investor?
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