upland
Member of DD Central
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Post by upland on Aug 5, 2018 6:43:21 GMT
Are we getting concerned ?
I quite like Unbolted , it just seems to run like a train and exposure to this eclectic mix of art and bling is helpful to my diversity as is the lack of property loans. As long as it makes a reasonable return on a yearly basis I have become happy with it but I guess one has to guard against being complacent.
I feel that there are a few concerns for me but they have never (yet) resulted in any problems unlike one or two other platforms I use. I like the number of different loans that I have , gives diversity however the mix of 'business' loans and bling loans is a bit lop sided with the 'business' loans on average several times the size as the average bling loan. If I were to reduce my limits to give me comparable loan sizes with the bling then I would end up with much less on the platform and it would be much less worth while keeping it open so I compromise. But I know from experience if one of these bigger loans were to fail then it would dent the returns badly , ones diversity is not a good as one would like. I dont think that they have ever had to use their safeguards / provision funds very much but it would be a shame if that came under pressure
With the cash drag being fairly wild as the business loans come in and out and the recent reduction in their interest rates it would be sad if their return became too low for the effort. I dont have too much with them as with most sites I keep to my comfort zone. In my view its not only Collateral who have gone wrong but thats maybe a good thing as one is left to move ones capital towards the good players.
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Post by df on Aug 6, 2018 15:59:29 GMT
Are we getting concerned ? I quite like Unbolted , it just seems to run like a train and exposure to this eclectic mix of art and bling is helpful to my diversity as is the lack of property loans. As long as it makes a reasonable return on a yearly basis I have become happy with it but I guess one has to guard against being complacent. I feel that there are a few concerns for me but they have never (yet) resulted in any problems unlike one or two other platforms I use. I like the number of different loans that I have , gives diversity however the mix of 'business' loans and bling loans is a bit lop sided with the 'business' loans on average several times the size as the average bling loan. If I were to reduce my limits to give me comparable loan sizes with the bling then I would end up with much less on the platform and it would be much less worth while keeping it open so I compromise. But I know from experience if one of these bigger loans were to fail then it would dent the returns badly , ones diversity is not a good as one would like. I dont think that they have ever had to use their safeguards / provision funds very much but it would be a shame if that came under pressure With the cash drag being fairly wild as the business loans come in and out and the recent reduction in their interest rates it would be sad if their return became too low for the effort. I dont have too much with them as with most sites I keep to my comfort zone. In my view its not only Collateral who have gone wrong but thats maybe a good thing as one is left to move ones capital towards the good players. I've invested on Unbolted for 19 months and don't have any concerns yet. "Business" loans don't include PF, but they are still secured by bling, which is one of the best (IMO) asset type in the event of default. I keep my settings for non-protected loans relatively low to reduce the risk. So far I've had a decent return and haven't lost any money.
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copacetic
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Post by copacetic on Aug 6, 2018 18:58:11 GMT
I got 11 'overdue loan assets put on sale' notifications on Friday too. I note that 5 were related to a single loan 2DFDC3D38 and another 5 were related to the next loan in the sequence by loan number. Looks like all one borrower to me so likely not anything to be overly concerned about. I guess UB should consider that sending out 10 emails for 1 borrower default is likely to spook investors but with their system churning out automated emails they maybe just haven't twigged that's what they're doing!
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marka
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Post by marka on Aug 7, 2018 8:18:04 GMT
I got 11 'overdue loan assets put on sale' notifications on Friday too. I note that 5 were related to a single loan 2DFDC3D38 and another 5 were related to the next loan in the sequence by loan number. Looks like all one borrower to me so likely not anything to be overly concerned about. I guess UB should consider that sending out 10 emails for 1 borrower default is likely to spook investors but with their system churning out automated emails they maybe just haven't twigged that's what they're doing!
I would argue that it shouldn't spook investors though, it should reassure them that action is taken to recover the funds when a borrower defaults, as opposed to many other (especially property dev heavy) platforms where the loan will sit in a defaulted but un-actioned state for aeons. As far as I am aware the reason why some loans result in separate emails is where the individual items are sold via different means (but that's really just an assumption on my part).
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Post by sannytwist on Aug 7, 2018 11:41:32 GMT
My overdue loans have significantly gone up , 23 now. Don't like it. Suppose its part of investing. Makes me nervous tho, just my personality.
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markyg61
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Post by markyg61 on Aug 7, 2018 13:09:32 GMT
23 out of how many though ?
I'm currently in about 300 loans with 0 overdue.
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slush
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Here to learn. Please be gentle.
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Post by slush on Aug 7, 2018 14:53:54 GMT
55 out of 385 for me
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Ukmikk
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Post by Ukmikk on Aug 7, 2018 15:39:58 GMT
I think there is an expectation of a fair number of overdue and defaulted loans with this type of lending. However the beauty of these loans is the security. As long as the valuations are sensible then we should not suffer losses. So far from being nervous about the 'up for sale' notifications, take comfort in them as they indicate that the process is working on your behalf. Only get nervous if the sale proceeds routinely fall short of covering the loan amounts.
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upland
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Post by upland on Aug 8, 2018 5:00:28 GMT
I believe that the industry standard for this sort of exploit is that between 1 in 6 to 1 in 10 loans will have a problem which needs to be resolved usually by sale of the asset. Does that sound about right ?
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Post by davids on Aug 8, 2018 7:39:34 GMT
Well I'm fairly new to unbolted and just starting to get repayments, so far I've had 6 repayments and my 7th was due on the 2nd but is overdue.
I've been constantly dripping tiny amounts into the platform and I don't mind if items go overdue if the process works.
So far I've lost nothing and gained the completion of 6 loans.
Edit: 7 loans repaid now, 1 still overdue
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applets
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Post by applets on Aug 8, 2018 8:02:12 GMT
My overdue loans have significantly gone up , 23 now. Don't like it. Suppose its part of investing. Makes me nervous tho, just my personality. You are fortunate that Unbolted has a good track record of recovery. Others may have exact figures, but there are very few occasions when the PF has been called on to make good a recovery. This really is a hands off platform once you have invested your money.
Personally, I am not nervous at all. However, if this number of overdue loans makes you nervous then you may wish to consider whether Unbolted, or indeed P2P in general, is the best place for your money. Peace of mind and good health is sometimes more important than a few percent extra interest!
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archie
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Post by archie on Aug 8, 2018 8:50:01 GMT
Anyone who has been a lender on Unbolted for more than six months is likely to have several overdue/defaulted loans.
I have about 50 at the moment.
The only thing I'm unhappy about is the interest rate drop last May.
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IFISAcava
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Post by IFISAcava on Aug 8, 2018 9:35:56 GMT
Anyone who has been a lender on Unbolted for more than six months is likely to have several overdue/defaulted loans. I have about 50 at the moment. The only thing I'm unhappy about is the interest rate drop last May. And the lack of an IFISA, which makes the post tax rate quite poor now. I'm drawing down a mid 5 figure position for now, but would return if an IFISA arrives.
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Esmeralda
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Post by Esmeralda on Aug 13, 2018 19:09:39 GMT
I've just worked out (and kind of wish I hadn't) that 22.6% of my total investment is now overdue or defaulted
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michaelc
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Post by michaelc on Aug 13, 2018 22:07:57 GMT
I've just worked out (and kind of wish I hadn't) that 22.6% of my total investment is now overdue or defaulted I'm a bit of a novice with UB. I mean I've been with them a good few months but don't have a huge amount invested and haven't invested a huge amount of time understanding the platform yet. How did you arrive at this figure? I can clearly see how many loans are "overdue" (six in my case) but how many loans am I invested in total? When I click "view portfolio" I see hundreds of loans and it would take me a long time to sum them manually.
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