david42
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Lendy (L) in Administration
PBL 27
Jul 13, 2015 16:47:21 GMT
Post by david42 on Jul 13, 2015 16:47:21 GMT
I've noticed some unusual recent movements with this loan. At the back end of last week £100,000 dropped into the SM but today it has all gone. It must have been taken out of the market because I cannot see corresponding purchases on the Recent Activity tab. My guess is that either SS or the underwriters are responsible for this. I wonder if anyone with more experience with this platform can shed a bit more light on this type of activity. Has it been common historically? I also note that quite a big chunk of PBL33 also hit the SM recently (some still there) and there were some medium-sized chunks of PBL29, 30 and 32 (but these went quite quickly). I'm just trying to understand the platform better and learn a bit more about how SS and/or underwriters interact with the SM if this is the case. The PBL33 availability was from an underwiter. Parts of PBL33 that I offered yesterday sold before the £54k that was already on offer. That only happens if the existing availability is from an underwriter.
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david42
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Post by david42 on Jul 4, 2015 23:39:12 GMT
Because the web site does not distinguish whether the funds on offer are from underwriters, before selling anything on a loan that is still being sold by underwriters, you can try selling a small part and immediately buying it back. If you find you have bought your own loan part then you know parts you sell will go to the front of the queue. It is a tedious workaround but better than leaving your loan parts stuck in a queue earning no interest. I have never tried this, but I presume you have, does the loan part you purchase have the same Loan Part ID as the one you've sold? The loan part IDs do change but I ignore them. I just look at my cash balance in the dashboard. If my purchase bought my own loan part, then my cash balance does not change because the purchase cost is instantly cancelled out by the sale proceeds. But if I did not buy back my own loan part then my cash balance drops by the purchase price I just paid. Yes, I used this technique to sell some of PBL033 ahead of the underwriters when PBL040 was launched and I wanted to diversify my holding.
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david42
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Post by david42 on Jul 4, 2015 22:05:25 GMT
First of all apology for creating a new thread if one already exists. After testing water with saving stream, I think I might use it for a fair chunk of my investment (on short term basis) as I'll be trying for mortgage in half or so year. I was wondering if I put my investment in secondary market, and already funds are available for others to pick, will my share of loan be picked before SS's share of loan? For example, if amount available to invest in PBL 99 is £100K and I decide to put £1K of my share in secondary Market, will that £1K be taken before £100K? Welcome to the forum. If nothing has changed since the last time I remember this subject coming up, then if the other £100k available is from SS underwriters still trying to exit their positions then, yes, your £1k will be at the front of the queue. If, however, all the underwriters already have exited their positions and the 100k is from investors like you and me, then your £1k will be behind the other £100k. And if, for whatever reason, nobody wants to buy any more PBL99 parts then it won't matter where your parts are in the queue because you'll be stuck with them until the loan is repaid by the borrower. My point is that while the secondary market is very active now, and selling parts is easy at the moment, there's no guarantee that it will always be the case. So bear that in mind when investing money that you might need to have back at some particular point in the future. Because the web site does not distinguish whether the funds on offer are from underwriters, before selling anything on a loan that is still being sold by underwriters, you can try selling a small part and immediately buying it back. If you find you have bought your own loan part then you know parts you sell will go to the front of the queue. It is a tedious workaround but better than leaving your loan parts stuck in a queue earning no interest.
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david42
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Post by david42 on Jun 23, 2015 14:26:49 GMT
Display problem? Last night was odd too. Towards midnight I was in the Q at £230K at YR 6.8% - good result for a Monday. There was about £40K in at 6.2%, and other amounts spread upwards. About £350K of borrower offers were displayed at 6.1%
This morning, lo and behold, almost all that £350K 6.1% borrower offer has evaporated. My £500+ which was at 6.8% has been matched dated today (very surprised), so over £230K of matches were made between midnight and 8:30 this morning - now that is not normal transaction behaviour. What is displaying needs to reflect actuality quite closely, within a few minutes, because it affects actions people take when choosing lending rates for their money. edit: ...and was this morning's 5yr Market Rate set at 6.9%? I can't see much below it, though YR for me was set at 6.8% (exactly what I specified) so that would mean the new YR rules have already been applied, not left untill tomorrow. I also got some 6.8% matches just before 8am. It matched my left over offers from the rate peak that failed to materialise on Sunday. Yippee. The rate trends tab says today's 5 year market rate was set at 6.2%. So that would explain why your YR was left at 6.8% under the old rules.
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david42
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Post by david42 on Jun 22, 2015 20:34:32 GMT
I've just put a couple of bits up for sale in 29 (£434.23) + 32 (£548.77) but they don't show as available in the list, can someone check to see if it's just my (being the seller) display not showing them, ta. Edit; Scratch that, after not showing anywhere for about 30mins I've now got the funds in my account. Parts I put up for sale have always shown as increased availability when I look at the list of loans. So there must have been a different issue that prevented you seeing the availability of the loan parts you put up for sale.
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david42
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Post by david42 on Jun 15, 2015 16:18:38 GMT
PBL007 has just been removed from the list of live loans.
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david42
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MoneyThing (MT) in Administration
FT Article
May 24, 2015 20:23:52 GMT
Post by david42 on May 24, 2015 20:23:52 GMT
I think the Financial Occasions version above must have been translated. The version on FT.com makes more sense. FT.com let me read it for free after answering a couple of marketing questions. The link comes up by Googling for "P2P body to ban institutional 'cherry-picking'"
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david42
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Post by david42 on May 9, 2015 9:40:57 GMT
What I would like to know is whether there is any substantial benefit in someone (or a small team) managing the loans as opposed to the lender clicking the button which automatically allocates monies to dozens or hundreds of borrowers. Say for instance I were to spread $10m USD across a number of P2P platforms, would I earn more with one option or the other and why? Take into consideration that I'd have the time to manage these loans with a small team. Your suggestion has already been done in the form of this investment trust that invests in P2P loans.
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david42
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Post by david42 on May 8, 2015 13:21:02 GMT
Perhaps there needs to be a category for "employee of" or "associate of" separate to "representative of"? (any employees/associates of a given P2P platform would then be REQUIRED to identify themselves as such, and may ADDITIONALLY be tagged as "representative of" [implying employee/associate] if they are a recognised contact point for the company). It would help to avoid repeated confusions such as this where an employee incorrectly tagged as a "representative" is mistakenly assumed to be speaking on behalf of the company or acting as a recognised contact point for them. Agreed. In fact there have been times when I've nearly left. Either because of the grief externally from some crazy conspiracy theory lenders or internally when I'm a little too honest. Also there is nervousness across the industry with the FSA's guidance on the use of social media. Everyone is (probably rightly) paranoid. I am pleased you have stuck with it. Your input is often useful and interesting. In the absence of any official representation from the company, this is the next best thing. This is one of the reasons I am happy having a larger investment on Ratesetter than on the other platforms I use.
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david42
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Post by david42 on May 2, 2015 15:20:02 GMT
I'm a member but I never received any email, nor is it in my spam folder - when was it sent and which email address was it sent from? It was sent from info@ablrate.com on 30th April 16:21 UK time. Title "Ablrate new site - important information"
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david42
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Post by david42 on Apr 27, 2015 17:55:33 GMT
I am not really sure what people mean by "marginal borrowing rate". I'm kind of assuming that it's the weighted mid-price at the end of an auction, I'm also kind of assuming that I am wrong . In a perfect world wouldn't you want the highest accepted rate on auction close? The worked example in the Wikipedia link and the worked example by adrianc p2pindependentforum.com/post/46422/thread both work on the basis of everyone getting the highest accepted rate on auction close.
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david42
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Post by david42 on Apr 27, 2015 16:28:07 GMT
I would be delighted if GSV's regime worked but I think it might be gamed to death. Giving everyone the same marginal rate is proven to work. According to Wikipedia, the United States Department of Treasury uses this approach to raise funds for the US Government. "all bidders will pay the same amount. In theory, this feature of the Dutch auction format leads to more aggressive bidding". en.wikipedia.org/wiki/Dutch_auctionIt is Funding Circle that is using the unusual auction approach with its uneven playing field and consequential opportunities for gaming and exploiting those bidders who do not have the opportunity to bid as close to the marginal rate as others.
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david42
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Post by david42 on Apr 27, 2015 0:01:27 GMT
I agree with GSV3MIaC that giving everyone the same rate seems fairer. By 'everyone' do you mean everyone who has bid and who still has bids in at the end? Yes, that is the way I have seen this type of bidding operate in other markets. I would bid the lowest rate I was prepared to accept, knowing that I would get the marginal rate rather than the rate I bid. I would bid for a range of rates with different volumes, because I usually want more of the loan if the rate is higher. I would only need to set my bids once for each loan, with no need to keep adjusting my bid or to be present at the end of the auction. The marginal rate would only approach MBR if there were enough borrowers prepared to fill the loan at that rate. This change would disadvantage those who are currently able to get closest to the top rate in each auction - including the flippers, bots, and others who are able to be present at the end of each auction. The change would benefit autobidders, less skilled investors, and those who do not have the time to get the top rate on each auction. By benefiting different types of lender, no doubt the lender base would change. It is not clear to me whether the overall impact would increase or reduce the average rate of return. The platform would become easier to use, because the change would reduce the importance of bidding just as the auction closes, and it would remove the need for bidding tactics that try to get close to the top rate for each loan.
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david42
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Post by david42 on Apr 25, 2015 7:50:30 GMT
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david42
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Post by david42 on Apr 20, 2015 16:23:00 GMT
Predrawn interest is Lendy Ltd’s responsibility and is one of our major, but only costs. It is a risk, in that we don’t necessarily know 100% whether the deal will be completed as was evidenced from the recent PBLS 11, 12 & 13. However, we do try to renegotiate with our borrowers as time goes by if the loans are delayed in legals. We have sufficient capital available to cover many monthly interest payments if necessary and will continue to do so for the foreseeable future. p2pindependentforum.com/post/37484/thread
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