hazellend
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Post by hazellend on Nov 5, 2017 11:14:58 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. Neither of those for me
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copacetic
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Post by copacetic on Nov 5, 2017 12:22:25 GMT
For people with a smaller amount to invest you can also get 5% guaranteed in a regular saver bank account (first direct, santander, nationwide, M&S bank). Obviously if you have a bigger pot these won't be of that much use but comparing to 6% black box risky invesment...
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ozboy
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Post by ozboy on Nov 5, 2017 12:43:24 GMT
Precisely. Offering a paltry 6% for High Risk coupled with Lendy's track record on Defaults and "Defaults", they're 'avin a larf.
Unfortunately the laugh will be on The Investors, it's never on Lendy
My last two Lendy Loan Parts now For Sale, please buy them.
I thank you. (Shows clean pair of heels as OzBoy departs Lendy Towers)
[Happy Daze, at 13:16 I've only £500 left to Sell!]
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p2p2p
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Post by p2p2p on Nov 5, 2017 12:59:48 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. Neither of those for me Lloyds!! It peaked at 976 in 1999, 591 in 2007, currently 67. I wish I knew where 90% of my money invested there went. And its been a consistent dividend payer, nothing at all for 6 years after the crash. I suggest you go for GEC, as Lord Weinstock is a safe pair of hands.
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Liz
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Post by Liz on Nov 5, 2017 15:41:04 GMT
Precisely. Offering a paltry 6% for High Risk coupled with Lendy's track record on Defaults and "Defaults", they're 'avin a larf. Unfortunately the laugh will be on The Investors, it's never on Lendy My last two Lendy Loan Parts now For Sale, please buy them. I thank you. (Shows clean pair of heels as OzBoy departs Lendy Towers) [Happy Daze, at 13:16 I've only £500 left to Sell!] you've seen the light. Out of interest, where have you stuck the cash? Maybe saving it for the stock market crash, right?
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ozboy
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Post by ozboy on Nov 5, 2017 15:56:16 GMT
Very, very, very tricky isn't it Nobody. I'm feeding MT & Unbolted as & when appropriate whilst keeping an eye out still on COLL. Otherwise stuffed into as many of the various 5% Bank Accounts as I can, even with their puny maximum limits.
I've cash coming out of my ears like many on here I suspect, but for me P2P has long had its best days and is now thoroughly untrustworthy.
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izigor
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Post by izigor on Nov 5, 2017 16:07:39 GMT
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. I'm scratching my head trying to understand the logic above. Can you please explain why a unanimous vote against Auto Invest would lead Lendy to scrap Manual Invest?!?
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garfield
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Post by garfield on Nov 5, 2017 16:16:31 GMT
I don't think we would see much, if any, change on manual investments.
I see the proposed Bonds as cheap loans to Lendy so they can cover the shortfall on DFLs (PBLs too).
I also suspect the rates would be guaranteed.
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ben
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Post by ben on Nov 5, 2017 16:55:49 GMT
would rather put it into one of the big banks paying 0.25% or whatever rather then a fixed return from Lendy. Even at the moment Lendy track record of borrowers are not exactly great, but they will probably be saints compared to some Lendy would deal with given a blank cheque book.
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Liz
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Post by Liz on Nov 5, 2017 17:11:37 GMT
I don't think we would see much, if any, change on manual investments. I see the proposed Bonds as cheap loans to Lendy so they can cover the shortfall on DFLs (PBLs too). I also suspect the rates would be guaranteed. If somehow they could fill all loans paying 6% on auto-invest, then paying 12% on manual investments would not make sense. It all depends on the demand for these 6% bonds. On the last point, Lendy isn't in a position to guarantee the rates on these bonds.
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p2p2p
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Post by p2p2p on Nov 5, 2017 17:32:59 GMT
I think that anyone who thinks they'll get the headline rate on p2p, and avoid cash drag and defaults is deluding themselves.
I assume my 12% will be reduced to 9% by bad debt. I'd be prepared to lower again to 8% to save all the hassle of managing it, but 6% is too far.
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hazellend
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Post by hazellend on Nov 5, 2017 17:56:55 GMT
I think that anyone who thinks they'll get the headline rate on p2p, and avoid cash drag and defaults is deluding themselves. I assume my 12% will be reduced to 9% by bad debt. I'd be prepared to lower again to 8% to save all the hassle of managing it, but 6% is too far. Agree, but worried Lendy will fill the bond with junk I’d rather avoid
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Post by df on Nov 5, 2017 19:52:11 GMT
It made me smile  It is hard to imagine many lenders going for Ly's autolend at 6%. The default rate is still high, loan availability for decent diversification is low and 6% is far too low for these type of loans. I hope Ly won't follow FC and make auto the only option. |
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garfield
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Post by garfield on Nov 5, 2017 21:21:20 GMT
My preferred answer wasn't an option:
Not over my dead body!
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Post by df on Nov 6, 2017 2:39:43 GMT
I expect quite a few indicated generic interest in such a product and answered Yes to Q1. For me, the acid test would be how Q13 was answered with respondents having had the time to absorb the rates on offer, etc: FWIW, I voted Yes to Q1 and 'Not at all likely' to Q13 Rates notwithstanding (yes, they would have to be higher) the other 'must have' feature would be auto-diversification, such that as new loans came along, any existing investment would be automatically re-balanced to include them. (I'm not sure this would be do-able unless the Bond managing entity had a float to absorb the various re-balancing transactions required to facilitate such a feature. This presumably means the entity would need to be sufficiently distant from Lendy / SSSH so as not to fall foul of the FCA 'no-skin-in-the-game' rules.) It is likely that in this proposed scenario the diversification model will be similar to AC - larger loans will get larger chunks of your funds. New loan flow is very little, so most of your monthly interest will be pumped back into new tranches of the same old loans... I can't see how Ly can possibly provide investors with effective diversification.
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It is hard to imagine many lenders going for Ly's autolend at 6%. The default rate is still high, loan availability for decent diversification is low and 6% is far too low for these type of loans. I hope Ly won't follow FC and make auto the only option.