|
|
Post by spectra on Oct 21, 2017 0:35:56 GMT
If recent offerings on many of the platforms on this forum are any guide, then P2P is currently in a “dash for trash” www.investopedia.com/terms/d/dash-to-trash.aspBeware, regardless of the platform, whether it is aircraft, student flats, apartments, “regeneration” in inner cities, hotels, fishing boats and licences and a plethora of esoteric projects etc. etc. ad nauseam, they are all being “talked up” aka “bull” by vested interests. Before any smart a*se says “you invested £3k in an arcane MT loan this week let me make it clear that the £3k is “parked” there awaiting better opportunities elsewhere and will be out of said loan before the end of this month. Caveat Emptor.  |
|
keith
Member of DD Central
Posts: 118 
Likes: 72
|
Post by keith on Oct 21, 2017 5:27:21 GMT
Agree. As I have posted elsewhere, we have too many funds chasing too few decent opportunities. As the headline price (interest rate) of the loan does not seem to fall to reflect this imbalance then the level of risk rises with ever more dodgy loans coming into the market and, thus, the risk adjusted return falls.
This is markets in action - let returns fall to persuade lenders to keep their money safe in the bank and the market will balance. However, the mechanism to remove funds from the market is augmented on some sites by engendering default conditions due to consistent poor loan quality and enforcement.
Maybe, we just had some form of golden age where we could get 12% plus with fairly limited defaults and that age is over - even more so with future rate rises and the icy winds of default blowing ever stronger.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Oct 21, 2017 8:21:47 GMT
It really depends on individual circumstances as well and people's tax situation.
For example, some people can make 17k P2P income a year and pay no tax on it, whereas a higher rate tax payer would have to get double the income gross to get the same. So if you have 140k to invest you can get 17k tax free income per year from it potentially.
Sure, it is a high risk proposition, but for some people, the risk is definitely worth it.
|
|
keith
Member of DD Central
Posts: 118
Likes: 72
|
Post by keith on Oct 21, 2017 11:07:58 GMT
Oh for goodness sake, just because we can't get a "safe" 12% any more doesn't mean the world's falling in. I've still got plenty on L, MT and CO but I did a reality check about 5 months ago, swallowed my pride and I'm now increasing my amount on the more balanced platforms like FC for 7% ish and AC for 9% ish. Good enough for me at this point. Nobody said the "sky was falling in" and I have done largely the same as you and switched to other platforms where I have greater confidence. I too still have plenty on LY - too much. I wish I had less 
|
|
|
|
Post by martin44 on Oct 21, 2017 11:48:41 GMT
I particularly agree with this analysis quoted.
BREAKING DOWN 'Dash To Trash'
'As the name graphically implies, investors are buying low-quality assets or assets that do not correctly price in the risks associated with them'.
This statement emphasis's the importance of Due diligence, i would suspect that a large number of p2p investors, at this very moment, do no DD whatsoever.
They must have more money than sense. JMHO of course.
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,808
Likes: 3,242
|
Post by jonno on Oct 21, 2017 11:58:02 GMT
I particularly agree with this analysis quoted. BREAKING DOWN 'Dash To Trash' ' As the name graphically implies, investors are buying low-quality assets or assets that do not correctly price in the risks associated with them'. This statement emphasis's the importance of Due diligence, i would suspect that a large number of p2p investors, at this very moment, do no DD whatsoever. They must have more money than sense. JMHO of course. I've definitely got more money than sense.
But then again I'm a complete K********. 
|
|
|
|
Post by martin44 on Oct 21, 2017 12:10:20 GMT
I particularly agree with this analysis quoted. BREAKING DOWN 'Dash To Trash' ' As the name graphically implies, investors are buying low-quality assets or assets that do not correctly price in the risks associated with them'. This statement emphasis's the importance of Due diligence, i would suspect that a large number of p2p investors, at this very moment, do no DD whatsoever. They must have more money than sense. JMHO of course. I've definitely got more money than sense.
But then again I'm a complete K********.
Why would you describe yourself as such? 
|
|
agent69
Member of DD Central
Posts: 6,048
Likes: 4,438
|
Post by agent69 on Oct 21, 2017 12:31:24 GMT
I particularly agree with this analysis quoted. BREAKING DOWN 'Dash To Trash' ' As the name graphically implies, investors are buying low-quality assets or assets that do not correctly price in the risks associated with them'. This statement emphasis's the importance of Due diligence, i would suspect that a large number of p2p investors, at this very moment, do no DD whatsoever. They must have more money than sense. JMHO of course. I've definitely got more money than sense.
But then again I'm a complete K*********.
Would have been impressed if you'd said you were a member of Mensa
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Oct 21, 2017 12:38:23 GMT
I Think people have learnt that you are not going to get a gold plated loan paying us 12% and paying god knows what to the platform with some actual risk. I invest in most of the platforms on here and most have some pretty good loans (even Lendy and FS) but they also have some shockers. I do not think the risk has changed since I started investing in any of them, but then I only invested in loans I was happy to hold to term (basically loans where the borrower actually has something to lose). With the exception of one of two that has basically been fraud this has worked well for me, but I fully expect to have loses. I also invest far more in the lower risk sites then I do in the higher risk sites. As with all asset class balance and diversify will help.
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,808
Likes: 3,242
|
Post by jonno on Oct 21, 2017 12:57:49 GMT
I've definitely got more money than sense.
But then again I'm a complete K*********.
Why would you describe yourself as such? Mmm.
I will never again leave my laptop switched on when my little mischievious b******* of a nephew is lurking around the house 
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Oct 21, 2017 13:01:10 GMT
If recent offerings on many of the platforms on this forum are any guide, then P2P is currently in a “dash for trash” www.investopedia.com/terms/d/dash-to-trash.aspBeware, regardless of the platform, whether it is aircraft, student flats, apartments, “regeneration” in inner cities, hotels, fishing boats and licences and a plethora of esoteric projects etc. etc. ad nauseam, they are all being “talked up” aka “bull” by vested interests. Before any smart a*se says “you invested £3k in an arcane MT loan this week let me make it clear that the £3k is “parked” there awaiting better opportunities elsewhere and will be out of said loan before the end of this month. Caveat Emptor. I don't think much has changed Mr Spectra! Most of the platforms are trying to "clear up" (some more efficiently than others) from the trash they have presented in the last couple or three years. FC, AC, L, FS; they've all got 'em. As for ReBS ... All meat for the unaware ... caveat emptor, indeed! Some of the recent offerings are of the same risk genre ... dire (only IMVHO, of course! OG (Plumber still my biggest loss!)
|
|
|
|
Post by GSV3MIaC on Oct 21, 2017 15:42:51 GMT
jonno Why would you describe yourself as such? Mmm.
I will never again leave my laptop switched on when my little mischievious b******d of a nephew is lurking around the house
/mod hat on Yes, I'd really be more careful, since too much colourful language will result in a posting holiday .. or was that what you were trying to discover 'how much gratuitous rubbish can I spout before I get banned'?? p.s. you can't spell mischievous either.
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,808
Likes: 3,242
|
Post by jonno on Oct 21, 2017 15:50:31 GMT
Mmm.
I will never again leave my laptop switched on when my little mischievious b******d of a nephew is lurking around the house
/mod hat on Yes, I'd really be more careful, since too much colourful language will result in a posting holiday .. or was that what you were trying to discover 'how much gratuitous rubbish can I spout before I get banned'?? p.s. you can't spell mischievous either. Oh give it a rest will you.
|
|
|
|
Post by df on Oct 21, 2017 17:13:22 GMT
I Think people have learnt that you are not going to get a gold plated loan paying us 12% and paying god knows what to the platform with some actual risk. I invest in most of the platforms on here and most have some pretty good loans (even Lendy and FS) but they also have some shockers. I do not think the risk has changed since I started investing in any of them, but then I only invested in loans I was happy to hold to term (basically loans where the borrower actually has something to lose). With the exception of one of two that has basically been fraud this has worked well for me, but I fully expect to have loses. I also invest far more in the lower risk sites then I do in the higher risk sites. As with all asset class balance and diversify will help. Very similar to my strategy, except I'm not as selective. There are some loans I ignore, but I do invest in most of them. For me diversification is a priority over chasing the highest returns.
|
|
madpierre
Member of DD Central
Posts: 303
Likes: 374
|
Post by madpierre on Oct 21, 2017 17:57:43 GMT
Spectra has a valid point and I would agree quality loans (read safe...ish) at high returns are definitely thin on the ground these days, but let's hope that is merely a temporary glitch. Having said that Spectra is more confident than me as I didn't 'park' £3k in the MT loan this week because I feared there may be no Parking Valet to it return at my command  And, if I continue to carefully scrutinise all loans I might one day make £17k from £140k of investments as Hazellend suggests, but as yet I haven't achieved that 'potential' ratio just yet. So perhaps scrutiny is a waste of time  |
|
