SteveT
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Post by SteveT on Mar 13, 2018 9:45:38 GMT
Come on fundingsecure, put the discount limit back to 4% and let market forces dictate SM pricing again. There are a (very) few FS loans I'd happily stick more in at 2% or 3% discount, but I'm sitting on my wallet at 1%. |
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Post by dan1 on Mar 13, 2018 10:36:17 GMT
In a way I'm not actually too displeased that the SM is behaving as it is. There's no bling to be had even at a 1% premium with few days remaining, i.e. at rock bottom rates below that offered by my regular savers with full FSCS cover. I think what it shows is that investors are finally taking account of the risks and that a 1% discount of a loan that could lead to a 50% capital loss is still not a good proposition, and 4% should make little difference. It's interesting to compare FS a year ago (launch of IFISA and SM on fire) with ABL at the moment where no discounts are on offer. If there are overdue loans on ABL in a year's time will we see the same with the widening of the spread of premiums across the loan book? In theory the the ABL system will allow people to sell even if it requires bigger discounts but will investments on the primary market continue?
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r00lish67
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Post by r00lish67 on Mar 13, 2018 10:55:17 GMT
In a way I'm not actually too displeased that the SM is behaving as it is. There's no bling to be had even at a 1% premium with few days remaining, i.e. at rock bottom rates below that offered by my regular savers with full FSCS cover. I think what it shows is that investors are finally taking account of the risks and that a 1% discount of a loan that could lead to a 50% capital loss is still not a good proposition, and 4% should make little difference. It's interesting to compare FS a year ago (launch of IFISA and SM on fire) with ABL at the moment where no discounts are on offer. If there are overdue loans on ABL in a year's time will we see the same with the widening of the spread of premiums across the loan book? In theory the the ABL system will allow people to sell even if it requires bigger discounts but will investments on the primary market continue? I felt this way when we had 25 or so loans at max discount, as it actually reflected investors being a bit more rational about just how valuable 1% off is. Now that we have 149 loans at max discount, a full 65% of all of the loans on sale, it makes it a bit of a mockery IMV and reflects investor panic more than anything else. Basically the same thing as Moneything have seen recently - better join the queue, quick! - except at -1% rather than par. Re: Abl, We don't really need to look much beyond FS for what would happen. When FS didn't have the limit, It only boosted investor confidence for new loans, as people are given confidence that there is a market that works, and one person spending their money on the SM is another person suddenly having the same amount (roughly) available to spend elsewhere, perhaps on the PM. Obviously times are different and FS have other problems too, but at least this one is one that is apparently within their control. Unless they just can't, due to one of your very feasible theories above or something else, in which case, just *** tell us fundingsecure so we can stop asking for it!
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number5
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Post by number5 on Mar 13, 2018 16:28:50 GMT
This is really frustrating....one of the main reasons I joined FS was because of its supposed liquid SM market (coming from FC)! If this isn't resolved by the time the new ISA allowance kicks in next month, I am going to have to start looking elsewhere I think...
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Liz
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Post by Liz on Mar 13, 2018 16:53:11 GMT
This is really frustrating....one of the main reasons I joined FS was because of its supposed liquid SM market (coming from FC)! If this isn't resolved by the time the new ISA allowance kicks in next month, I am going to have to start looking elsewhere I think... Not many platforms(maybe abl) around with a liquid fee free SM. There is AC, but the return is far lower. You may have to look outside of p2p.
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number5
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Post by number5 on Mar 13, 2018 17:04:17 GMT
This is really frustrating....one of the main reasons I joined FS was because of its supposed liquid SM market (coming from FC)! If this isn't resolved by the time the new ISA allowance kicks in next month, I am going to have to start looking elsewhere I think... Not many platforms(maybe abl) around with a liquid fee free SM. There is AC, but the return is far lower. You may have to look outside of p2p. Tbh I did not mind the fee on FC...obviously it's better without...but Liquid SM was one of my main criterias....AC was one I considered but as you said the returns are a lot lower...especially now. I haven't really looked at ABL...how is that for buying and selling loans...much on the PM and SM?
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 15, 2018 0:30:09 GMT
Being able to sell at a discount is a major feature of the FS model, it's far greater than on ABL, because the 5 month sale window leverages the risk/reward particularly for non-tax payers (inc. ISA a/c's). In my opinion this makes FS the best P2P model available, although the slow renewal rate does counteract this. A 1% discount is not a fair reflection of the risk and never has been. It didn't matter when lender demand outstripped supply, but times have changed. Restricting the discount is only going to amplify the problem. Before May 2017 when there was no IFISA money we often saw loan units offered at up to -2%. Given the current P2P market conditions we probably need -2.5% to get the FS SM moving freely again.
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mikes1531
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Post by mikes1531 on Mar 16, 2018 3:54:28 GMT
I do think we are either going to see 14% as the new norm or cashback 💷💷💷💷💷💷💷💰💰💰💰💰💰💰💵💵💵💵💵💵💴💴💴💴💴💸💸💸💸💸💸 I thought so too. Then this week's loans arrived -- mostly at 12% (bling even lower), and no bonuses to attract BHs. And then -- surprise, surprise -- the PM has six loans available, still needing over £1M of funding. In a few hours, a seventh loan will join the list and I expect the amount of funding required will rise to about £1.3M. I really do hope fundingsecure recognise that they are contributing to the lack of investor enthusiasm, that they no longer can count on the quick funding of anything they put on the platform, that they need to take action to address these issues -- and that they actually do something!.
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