upland
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Post by upland on Nov 4, 2017 11:40:15 GMT
Do we take it that the 3 & 5 year 'bond' returns that were suggested in the survey are Lendys view of what is a realistic / anticipated return on this platform ?
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gustapher
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Post by gustapher on Nov 4, 2017 12:02:49 GMT
Hi, over 400 responses so far. Interesting that the views in this thread are very much in the minority. Lendy Support (Forum update: Early results - 715 responses; 46% in favour of auto-invest product, 33% against, 21% don't know.) So as a follow up to my previous post I can confirm I have seen original screenshots proving the above data to be accurate. I won't post them here as they obviously don't want to do so themselves but I was wrong when I questioned the accuracy of the post above. I constantly bang on about people speculating and then did exactly that myself and, predictably, now look a bit daft. So sorry about that. Have a good Saturday all.
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7d7
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Post by 7d7 on Nov 4, 2017 13:54:08 GMT
Does the survey have a valid purpose?
While L claim to invite feedback from users, their record this year reveals an unceasing disregard for lender concerns/queries on pertinent matters. L will proceed with the venture irrespective of the results or comments noted above as they target a part of their clientele that will maximise their profits. Who cares what ye think? According to L, our model is tried and tested, our due diligence is robust and our recovery processes are the best in the industry.
Engaging when there is an opportunity to secure more spondulicks isn't true engagement.
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hazellend
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Post by hazellend on Nov 4, 2017 14:03:50 GMT
I said I would consider it but not at the rates offered.
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elliotn
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Post by elliotn on Nov 4, 2017 14:55:01 GMT
I do not trust them enough to bung money in willy-nilly and it would have to be min 10% to even consider (which isn't going to happen as my word is my bond).
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Balder
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Post by Balder on Nov 4, 2017 15:12:07 GMT
You can get better elsewhere for example Dolphin Trust which has a 20 year record of return. They do a 2 year 10% interest paid every 6 months or 2 years interest paid at the end 22%, or 5 years interest paid at the end 60%.
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mikes1531
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Post by mikes1531 on Nov 4, 2017 16:59:51 GMT
You'd only be considering a new product if you can't get enough money into the existing loans, and generally that's not the case here... There's another very good reason for considering such a new product, and that's to reduce their cost of capital. If they could get funds at 6-7% that they're now having to pay 12% for, and have those funds committed for 3-5 years, their bottom line would be much improved. Do we take it that the 3 & 5 year 'bond' returns that were suggested in the survey are Lendys view of what is a realistic / anticipated return on this platform ? ISTM it's more likely to be Lendy's view of what it would take to bring in lots of funding from people willing to invest via black boxes. The difference between what Lendy think they can achieve on the platform and what they think would satisfy their black box investors is the boost they'd get to their bottom line.
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jjc
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Post by jjc on Nov 4, 2017 17:02:20 GMT
What’s not clear to me is whether this AI product would run alongside the existing manual lending option, or look to replace it. Also unclear is whether the AI would run on the platform or off it (in the latter case, for example, as a bond.) I see these as important to clarify, as aside from the fact I would be unlikely to invest in a 3-5Y bond (issued by any p2p platform), the answers might reveal more as to LY’s prospects of getting full FCA authorisation, their willingness/ability to invest in their IT, & short-mid term platform risk.
Clearly the big retail money is in auto-invest type products, & LY would - to be frank - be commercially irresponsible not to consider this route. I am happy that LY are considering this, particularly if as a supplement to manual lending (which I am open to continue contemplating.) If the answers LY get from most/almost all forum members are a flat negative that would (imv) likely encourage them to scrap manual lending & go down the AI-only route, which to my mind adds zero value to most of us here.
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hazellend
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Post by hazellend on Nov 4, 2017 17:12:37 GMT
Can get 5.5% with growth street, which is much lower risk.
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Post by supernumerary on Nov 4, 2017 20:21:06 GMT
You can get better elsewhere for example Dolphin Trust which has a 20 year record of return. They do a 2 year 10% interest paid every 6 months or 2 years interest paid at the end 22%, or 5 years interest paid at the end 60%. It is at moments like this, somebody imparts information that is not widely known to all.  I didn't know about Dolphin Trust, so thank you for the information. Much appreciated. 
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Liz
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Post by Liz on Nov 4, 2017 22:16:36 GMT
What’s not clear to me is whether this AI product would run alongside the existing manual lending option, or look to replace it. Also unclear is whether the AI would run on the platform or off it (in the latter case, for example, as a bond.) I see these as important to clarify, as aside from the fact I would be unlikely to invest in a 3-5Y bond (issued by any p2p platform), the answers might reveal more as to LY’s prospects of getting full FCA authorisation, their willingness/ability to invest in their IT, & short-mid term platform risk. Clearly the big retail money is in auto-invest type products, & LY would - to be frank - be commercially irresponsible not to consider this route. I am happy that LY are considering this, particularly if as a supplement to manual lending (which I am open to continue contemplating.) If the answers LY get from most/almost all forum members are a flat negative that would (imv) likely encourage them to scrap manual lending & go down the AI-only route, which to my mind adds zero value to most of us here. Once they can fill loans @6% through auto-invest, then why would they offer them to manual/active lenders @12%?
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Jeepers
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Post by Jeepers on Nov 5, 2017 0:36:44 GMT
Lendy really ought to be careful if they’re planning on bringing rates down as far as 6% particularly when the BoE rate will probably continue to rise over coming months.
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Post by GSV3MIaC on Nov 5, 2017 10:53:08 GMT
But it looked to me like a fixed rate, so why should Ly care if they can lock you in for N years at 6% and then rates rise .. from their point of view that's much better than having to offer you more later, or to hand over practically half their income by paying you 12%, and then having you moan about the dud's in the pack.
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Post by brokenbiscuits on Nov 5, 2017 10:59:09 GMT
Would you be interested in a fixed fee investment? Yes.
Would you be interested in a 3-5 year bond paying 6%? No.
Please comment further? In principal I like the idea of a fixed fee no hassle approach, however, I see no benefit in halfing my returns while my money is invested in the same things I may have invested in at 12% manually along with a large amount I would have ignored and all locked in with zero liquidity.
Assume the answers above will add to the 46% in favour.
Bond mason is fairly popular because it invests over a number of platforms and spreads risk. They say they only pick the best loans from each platform. I understand they are suggesting returns of over 6%. So if bond mason offer a fixed fee (and no lock in for 3-5 years) that includes ‘the best’ lendy loans among ‘the best’ other platforms have to offer too for diversity, why would anyone choose a bond on lendy that pays a lower rate of return,locks up your money and doesn’t diversify compared to rival products?
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Post by harryvederci on Nov 5, 2017 11:01:12 GMT
you can already buy a solid FTSE 6% yielder like Lloyds (where all the skeletons have been shaken out of the cupboard) which also offers capital growth and the likelihood of further special divis, given the choice between that and Ly autoinvest on that subprime loanbook I know where my (6%) money would go.
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