TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Apr 21, 2015 8:34:18 GMT
The fact recent auctions seem to be taking a few hours (rather than a few minutes) to fill is, I think, presenting a few "very early closer" fishing opportunities but I'm not convinced it's done anything yet for closing rates on auctions going the distance, or even running beyond the first 24 hours. The vast majority of those I had optimistic bids in last night are already well below my "Give Up" threshold this morning and the rest will be there by lunchtime. The early-stage bidding dynamics perhaps have changed but not, I think, the fundamental mismatch between supply and demand. I second this. Looking at the loans that are closing today the rates are dismal. Less than 7% (after fees) for an unsecured loan even if it is "A+" is still nonsense IMHO.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Apr 20, 2015 17:49:35 GMT
12201 should make it, but the rest... I notice that there have been two interesting A rates in the last 20 closing bids at 13.6% and 14.2%, are these harbingers of good times or just a couple of outliers? Early closers?
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Apr 16, 2015 20:53:49 GMT
New loans seem to be filling very slowly today, and there are even a couple of SME loans listed yesterday that have yet to fill up completely. Have the big guns got bored and wandered off somewhere else to play? Did yesterday's website problems crash their bots? Or...? Nope. We are back to SNAFU.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Apr 16, 2015 20:51:31 GMT
From reading Q&As one can deduct that in many cases there are "agents" that fill out the FC application on behalf of their semi-unaware clients. When the bidding is closed they probably push it to the client to see if they bite. In most cases the client does not.
Speculating a bit more, FC may tell hesitant borrowers to take the plunge and list a loan given that there is no commitment to accept it. One can also assume that some would-be-borrowers may list a loan just to test the market and/or negotiate with their banks.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Funding Circle (FC)
Fees
Mar 27, 2015 15:11:10 GMT
Post by TitoPuente on Mar 27, 2015 15:11:10 GMT
Thanks for the responses, seems reporting gross is the prudent thing to do. I don't agree. Interests are what the financial institution finally pays to the saver. Financial institutions can only withhold taxes. If an interest payment is declared to be gross, then what the saver receives *is* the gross interest. Maybe the issue would be less clear is savers would have to pay FC's fees from their bank accounts, but this is not the case.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Mar 10, 2015 14:28:53 GMT
I really can't believe you guys are still investing with Fouling Carcass You have a point, but what are the credible alternatives and how do they compare in terms of platform risk, asset risk, and yield?
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Mar 10, 2015 13:45:48 GMT
The logical solution to these fiascoes would be to scrap the fixed interest rate and let the market decide the pricing.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Funding Circle (FC)
RAG rating
Mar 9, 2015 12:15:58 GMT
Post by TitoPuente on Mar 9, 2015 12:15:58 GMT
As always, thanks to this forum for the heads up. I was not aware of the RAG system.
I wonder if anyone here is victim of 7000. The company is still trading. Their website is up and running, but they are not servicing the loan. FC reported that the borrower "wishes to propose a CVA". This is a tricky situation because the owner can still run the show, pay nothing to creditors, and buy time while keeping profits. I am starting to suspect that this is a scheme to fool FC's extremely weak and understaffed recovery team.
Any thoughts?
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Mar 5, 2015 15:41:35 GMT
. Being able to achieve 10-12% on secured loans elsewhere, compared to 7-9% on loans with only potentially worthless PGs, was a persuasive factor. Which platform offers 10-12% on secured loans?
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Feb 24, 2015 12:28:43 GMT
This is all good but the key issue is liquidity.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Feb 16, 2015 16:58:03 GMT
Just one important factor to throw in is the value of time. A simple example: It is basically the same to get a 6% A+ bid accepted today than a 12% A+ bid accepted after waiting 6 months (assuming a one year hold). All the return and yield figures that FC show completely ignore the funds that are on hold.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Feb 10, 2015 15:00:23 GMT
No borrower with a bit of wit would accept a loan that has a higher rate than what the market was willing to offer and could not because of a shambolic website.
The result of this is that a higher number of ended loan requests will be rejected by the borrower and maybe re-run at a later date, if the borrower is tolerant enough.
At this point I don't understand why there is no investment in a new system. My only explanation is that the "entrepreneurs" are so greedy that cannot agree the terms to let capital into the venture. There are plenty of examples of entrepreneurs that are brilliant starting a business and a complete failure running it. This may be a case of such.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Feb 2, 2015 12:07:43 GMT
Appalling, shocking, horrific, terrible, awful, dreadful, horrendous, atrocious, outrageous, nightmarish, dire, shameful, unspeakable, unforgivable, unpardonable. Is there anything else that can be said about Funding Circle's technology management?
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Jan 30, 2015 12:52:44 GMT
Learn is not a verb in FC's lexicon.
|
|
TitoPuente
Member of DD Central
Posts: 623
Likes: 655
|
Post by TitoPuente on Jan 7, 2015 10:58:47 GMT
You will pay taxes on interests and on any profit made from selling loan parts at a higher price. You only pay no tax on cash-backs which are considered to be a return of your own invested capital. Am I right?
|
|