aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Aug 29, 2020 13:14:18 GMT
It's easy to be unemotional when you're no longer invested Anyway, if it's possible, then I agree with your disagreement. Certainly if the capital coverage gap (assuming 50% investor interest) keeps on narrowing at the rate of £4m every two months then it will look worse. It shouldn't get to that stage though, because RS will presumably then cut investor interest to maintain protection of capital. So, same same but different maybe? If they were to stop interest now, investors will get more (maybe all?) of their capital back. If they don't, there'll be a bit less as you expect. All of this is much less optimistic than the RS stats state at the moment though of course. Their stats currently say that the 50% haircut is sufficient, though that wording change from "will" to "seeks to" is no accident I'm sure. You shouldn't be emotional with invested money to start with. I've seen that comment somewhere before, haven't I ... I must speak to Mrs Aju but she's busy at the moment and i'd hate to disturb her in the middle of ordering more cheap goodies from some weird Chinese site called wish!
|
|
beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
|
Post by beagle on Aug 29, 2020 14:14:12 GMT
You shouldn't be emotional with invested money to start with. I've seen that comment somewhere before, haven't I ... I must speak to Mrs Aju but she's busy at the moment and i'd hate to disturb her in the middle of ordering more cheap goodies from some weird Chinese site called wish! ha well I know I say it but I do believe it to be true.
|
|
|
Post by mouldy on Sept 3, 2020 9:10:30 GMT
mouldy 1) Those numbers are comparisons between last month (July) and May, the RS stats we are dealing with are always reported at the end of the current month. the original statistics page does state this quite clearly. I think others already mentioned we are always a month behind. I'm not sure if it was a net figure or a gross I suspect it was net I just created the comparisons. 2) It's just dropping I guess as a result of less lending and less interest (The 50% function) who knows you will have to read the original it was taken from it will be available for all to see on RS stats page until its updated for August sometime in the last week of September (Unless its late!) Wouldn't the 50% function result in an increase in inflows into the provision fund? Previously 100% of the interest was going to investors (and not the provision fund) and now 50% of it is going directly to the provision fund?
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Sept 3, 2020 9:21:43 GMT
mouldy 1) Those numbers are comparisons between last month (July) and May, the RS stats we are dealing with are always reported at the end of the current month. the original statistics page does state this quite clearly. I think others already mentioned we are always a month behind. I'm not sure if it was a net figure or a gross I suspect it was net I just created the comparisons. 2) It's just dropping I guess as a result of less lending and less interest (The 50% function) who knows you will have to read the original it was taken from it will be available for all to see on RS stats page until its updated for August sometime in the last week of September (Unless its late!) Wouldn't the 50% function result in an increase in inflows into the provision fund? Previously 100% of the interest was going to investors (and not the provision fund) and now 50% of it is going directly to the provision fund? You would like to think so but perhaps the defaults are clawing more out of the fund than the 50% is propping up. That said there are potentially a lot of people in deferred (forbearance) mode. Rs has stated that they are technically in default and the PF fund registers this perhaps that's the reason. As I said before I didn't analyse the differences just presented them. You could ask RS a direct question I guess if its a concern.
|
|
|
Post by RateSetter on Sept 29, 2020 15:36:48 GMT
Good afternoon all. We have completed the usual monthly update of data on the statistics page and alongside we have published the monthly Provision Fund commentary in a RateSetter Notice, which is copied below in full for ease of reference:
|
|
beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
|
Post by beagle on Sept 29, 2020 17:10:02 GMT
Good afternoon all. We have completed the usual monthly update of data on the statistics page and alongside we have published the monthly Provision Fund commentary in a RateSetter Notice, which is copied below in full for ease of reference: well at least the cash balance is up, thanks to our contributions. However, this leaves a hugely obvious issue - when will they announce the extension of the rate reduction as unless the ratio jumps by 10% monthly we will never make 100% by the end of the 8 months - considering the climate, less inflows and expected cliff edge of defaults. I take comfort in the fact that the loan book is smaller and the PF balance is stronger but that will only stand as long as we pay in - so naturally the last ones on the line are in short - not getting a hair cut but likely going to be bald.
|
|
|
Post by RateSetter on Oct 2, 2020 16:34:42 GMT
Good afternoon. We have published a RateSetter Notice today which outlines a change we are making to the Provision Fund charge-off procedure for consumer loans. The RateSetter Notice is copied in full below for your reference:
|
|
|
Post by RateSetter on Oct 29, 2020 15:28:56 GMT
Good afternoon. Today we have completed the usual monthly update of data on the statistics page and alongside we have published the monthly Provision Fund commentary via a RateSetter Notice, which is copied below for reference:
|
|
|
Post by Deleted on Oct 29, 2020 16:15:53 GMT
The interest coverage of 72% is still less than it was at the start (May 2020) of the haircut which is targeting 100% on 31/12/20. I really don't see how the haircut can end on 31/12 and RS should be open and honest about it.
I certainly won't be adding funds until the 2021 haircut(s) have been announced.
|
|
|
Post by Ace on Oct 29, 2020 22:16:45 GMT
Good afternoon. Today we have completed the usual monthly update of data on the statistics page and alongside we have published the monthly Provision Fund commentary via a RateSetter Notice, which is copied below for reference: Is the omission of your usual statement that has been included in every monthly update until now, I.e.: a veiled acceptance of the fact, that's been obvious for many months now, that the current reduction in interest rates will not be sufficient to restore the ICR to 100% by the end of the year? The ICR was 74% when you announced the reductions on the 4 May. 6 months later it stands at 72%. You announced earlier this month that your change to the Provision Fund charge-off procedure (which starts today) would result in a further 3% reduction in the ICR. So it effectively stands at 69% today. So, in summary, 6 months of the current measures have effectively reduced the ICR from 74% to 69%. Do you really expect us to believe that 2 more months of these measures will restore the ICR to 100%?
|
|
|
Post by freefalljunkie on Oct 30, 2020 9:41:22 GMT
Totally agree Ace. Some more openness and honesty from RS on this is long overdue. You would think they would have learned from their experience back in March/April - I believe their obfuscation and half truths about the scale of the liquidity problem were a major contributor to investors rushing for the exit door. Witness the '9 out of 10 investors continue to invest' bollocks they trotted out for weeks. Trying to pull the wool over your customers' eyes is never a smart way to run a business.
|
|
wapping35
Member of DD Central
Posts: 385
Likes: 210
|
Post by wapping35 on Nov 3, 2020 17:08:03 GMT
In case you missed it they have changed the interest hair cut period from ending Dec 31, 2020 to :
Since 4 May 2020 investors have only been receiving 50% of interest, with the other 50% going to the Provision Fund, for the protection of all investors. This will be the case until further notice and reviewed every quarter.
======
Taken from todays RS e:mailed monthly statement...
|
|
|
Post by Ace on Nov 3, 2020 17:23:05 GMT
In case you missed it they have changed the interest hair cut period from ending Dec 31, 2020 to : Since 4 May 2020 investors have only been receiving 50% of interest, with the other 50% going to the Provision Fund, for the protection of all investors. This will be the case until further notice and reviewed every quarter.
====== Taken from todays RS e:mailed monthly statement... Sneaky. It's been obvious for ages that PF wouldn't be restored by end of Dec. The only surprise is that they still don't think they need to cut deeper.
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Nov 3, 2020 18:18:15 GMT
|
|
|
Post by RateSetter on Nov 30, 2020 17:28:49 GMT
Good afternoon. Today we have completed the usual monthly update of data on the statistics page and alongside we have published the monthly Provision Fund commentary via a RateSetter Notice, which is copied below for reference:
|
|