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Post by peerlessperil on Sept 18, 2017 10:25:40 GMT
Let's have a look at what intentions are regarding the "new" Funding Circle?
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Post by captainconfident on Sept 18, 2017 10:42:34 GMT
I find that I need the feeling of involvement with the borrowers that this new FC model does not provide. Can't wait for the new Funding Knight to debut; there's such a gap in the market now.
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ptr120
Member of DD Central
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Post by ptr120 on Sept 18, 2017 10:45:03 GMT
I had some money sitting on the platform in case any tasty loan parts came up over the weekend. I've now withdrawn my funds having sold any loans that I didn't want to keep - my current holding is now just a quarter of what it once was, and I won't be reinvesting any interest or repayments. I'll likely sell out before the end of the tax year, but I expect I'll still have the problem of the London hotel loans.
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Post by ratrace on Sept 18, 2017 10:47:47 GMT
l have got out of FC and while am no longer able to do manual bidding there l will be staying out.
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Gruff
Posts: 63
Likes: 68
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Post by Gruff on Sept 18, 2017 11:06:35 GMT
Sold 60%, letting the rest of my loans run their course; no new investments, just a weekly draw down
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pikestaff
Member of DD Central
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Post by pikestaff on Sept 18, 2017 11:09:12 GMT
The poll has options for running off and exiting, but it does not have options for
- intending to join, or
- (as in my case) intending to resume lending having given up in the past.
I won't resume until the dust has settled but it's likely that I will then. If I do it will be "balanced" and that is what I have ticked.
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Post by mrclondon on Sept 18, 2017 11:28:21 GMT
I lent extensively since launch in 2010 through to Dec 2013, but not a penny since. Just have a few 4 and 5 year loans remaining. (XIRR 7.3% pa which is much better as a long run average than I feared back in 2013 when their recovery efforts were pretty feeble.)
My present intention is as soon as the IFISA launches, I'll transfer in £20k into balanced (which I've ticked), and probably a further £20k next April.
(I don't want to put further money into S&S ISA at the present time, so intend to use IFISA for my full allowance)
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blender
Member of DD Central
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Post by blender on Sept 18, 2017 11:37:31 GMT
We have two accounts, one with long dated property, the other with shorter dated property. There will be two sell-off dates. We may look at the ISA option in 2018/9. 7.5% tax free with no work has some attraction.
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ashtondav
Member of DD Central
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Post by ashtondav on Sept 18, 2017 11:59:12 GMT
7.5% with no work. Lovely! Over the economic cycle perhaps 6%. Still lovely.
We have to face it. Manual bidding is not a mass market offering. It is very much a niche, now offered by riskier platforms IMHO.
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Stonk
Stonking
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Post by Stonk on Sept 18, 2017 12:10:44 GMT
I am winding down. I spent the last few weeks selling off my more dubious parts and replacing them quite cheaply with better quality material, but as my portfolio repays I feel I can neither re-invest repayments nor invest new money because AutoBid will simply undo that good work.
Also, I have strong doubts about the claimed 7.5%. I have had such a rash of defaults over the last month and late payments during the last week that I am left rather disillusioned. Had this last week been more problem-free, I would probably have felt better and plonked a bit more cash in at the end. But a new late loan 6 days out of 7 rather spoils the flavour.
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Post by peerlessperil on Sept 18, 2017 12:15:18 GMT
The poll has options for running off and exiting, but it does not have options for - intending to join, or - (as in my case) intending to resume lending having given up in the past. I won't resume until the dust has settled but it's likely that I will then. If I do it will be "balanced" and that is what I have ticked. Thought about it....but by providing "re-joining" & "intending to join" options you lose the split between conservative/balanced (or you provide sub-options and it all gets very messy).
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Post by ratrace on Sept 18, 2017 13:58:54 GMT
Until this change l was quite a fan of FC but now l think its best to leave it alone for now.
Because over the longer term l think the returns will be nearer 6% rather then the 7.5% they suggest.
Also it hands over much of the control from the investor and into the hands of FC instead. Who's to say that in the future they won't try to take on more risk if the returns come in under the 7.5% they stated.
Plus what's to stop them putting fee's or restrictions on selling if the outflow of cash becomes to great. Just remember what happened to investors who try to sell out of property unit trusts when the market tanked some years ago.
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pikestaff
Member of DD Central
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Post by pikestaff on Sept 18, 2017 15:09:11 GMT
Plus what's to stop them putting fee's or restrictions on selling if the outflow of cash becomes to great. Just remember what happened to investors who try to sell out of property unit trusts when the market tanked some years ago. Not the same thing at all. Selling loan parts is not an outflow of cash from the platform. It's one lender selling to another. The worst thing that can happen (if the platform is still in business) is you can't sell because there are no buyers, or you can only find buyers at a massive discount. Restrictions on selling out of property unit trusts are permitted precisely because that is an actual cash outflow which can only be funded, once the trusts's liquidity buffer is used up, by selling real assets. This is time consuming, costly, and not a clever thing to do on a panic basis into a falling market. Whenever there's a panic loads of retail investors want out at once and so the barriers have to go up. There are no such barriers with closed end funds (investment trusts) because there it is one investor selling shares to another, with no cash effect on the funds. With closed end funds, a panic just causes the price to go to a large discount, creating buying opportunities for the brave (or foolhardy, if you prefer). They are the better analogy to FC, although not perfect because I think you will always find a buyer for shares, at a price.
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Post by GSV3MIaC on Sept 18, 2017 17:16:05 GMT
Not the same thing at all. Selling loan parts is not an outflow of cash from the platform. It's one lender selling to another. The worst thing that can happen (if the platform is still in business) is you can't sell because there are no buyers, or you can only find buyers at a massive discount. 'massive discount' is no longer an option at FC .. you sell at par or you don't sell was my understanding. It still works at other platforms (a few). It does impact the platform insofar as it makes it hard to float new tat at 12% if you can buy old 12% tat for 90p in the £ .. again, that doesn't apply to FC, since you have no control over your tat purchases anyway.
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Post by ratrace on Sept 18, 2017 17:21:28 GMT
Plus what's to stop them putting fee's or restrictions on selling if the outflow of cash becomes to great. Just remember what happened to investors who try to sell out of property unit trusts when the market tanked some years ago. Not the same thing at all. Selling loan parts is not an outflow of cash from the platform. It's one lender selling to another. The worst thing that can happen (if the platform is still in business) is you can't sell because there are no buyers, or you can only find buyers at a massive discount. Restrictions on selling out of property unit trusts are permitted precisely because that is an actual cash outflow which can only be funded, once the trusts's liquidity buffer is used up, by selling real assets. This is time consuming, costly, and not a clever thing to do on a panic basis into a falling market. Whenever there's a panic loads of retail investors want out at once and so the barriers have to go up. There are no such barriers with closed end funds (investment trusts) because there it is one investor selling shares to another, with no cash effect on the funds. With closed end funds, a panic just causes the price to go to a large discount, creating buying opportunities for the brave (or foolhardy, if you prefer). They are the better analogy to FC, although not perfect because I think you will always find a buyer for shares, at a price. What worries me about FC now is if there is more cash trying to move out then there is coming in then what will FC try to do stop that. Because if there is a large increase of sellers over buyers then that's going to take alot of money away from the PM. So in order to try and stop that happening. FC could stop sellers offering a discount to try and sell their loan parts and only let them sell at par. Also FC may slap a fee on buying and selling in the SM but not on buying on the PM so in order to try and increase the flow of money going into the PM. Until l know the answer to that am staying clear and will be investing in P2P through investment trusts.
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