pikestaff
Member of DD Central
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Post by pikestaff on Oct 30, 2017 9:34:51 GMT
Having to continually reinvest to get your 6% or target rate is a reason I’ve stopped lending in the 5 year market. The problem is that if you do that you will always be 5 years away from getting all your money back without paying fees. Instead I lent large amounts in the 5 year market and now reinvest all repayments in to rolling. It reduces my return but means over time I have less capital locked in for years. Maybe not quite such a problem tho after this week when sell out fees are reduced. I am averaging 4.2% on rolling and 7.4% on 1 year, I still can't see how the sums add up for 5 year even at 6.5% when if I keep rolling over over 3.5%+ I will beat 5 year....with pretty much instant access. Provided you reinvest, the 5 year market will always beat the rolling market. To help you see this, imagine that you invested all your money in rolling at 3.5% and took out (on average) 1/60 of it every month, matching the profile of a 5 year loan at (say) 6%. Which would pay more then? The 5 year loan, obviously. If you truly are averaging 7.4% on 1 year that is an anomaly which I'd not expect to persist - unless you are achieving it at the cost of a lot of dead time. What is your average time to lend?
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puddleduck
Member of DD Central
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Post by puddleduck on Oct 30, 2017 10:21:40 GMT
If you truly are averaging 7.4% on 1 year that is an anomaly which I'd not expect to persist - unless you are achieving it at the cost of a lot of dead time. What is your average time to lend? Yes, truly. Frankly I'm annoyed I'm only at 7.4%... p2pindependentforum.com/thread/10415/1-year-rate-hit-10
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TheDriver
Member of DD Central
Slightly bonkers
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Post by TheDriver on Oct 30, 2017 13:23:12 GMT
So when will today's matching run occur? At the moment there's just enough on offer, but it will take 98% of that funding, at rates up to about 6%.
I'd expected to see a partial run earlier to encourage more funding, but maybe the system wants more money to be placed at the market rate first? I haven't followed RS processes closely enough to judge/estimate/guess!
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