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Post by caveman38 on Dec 15, 2017 17:58:10 GMT
Seeing as they appear to be popular in the poll , I felt I had to ask. I've invested in MT, SS, RS and a couple of others but am not familiar at all with these. They appear to be similar to SS with higher interest rates. Does that come with a higher risk. Are they getting the percentage of defaults as SS do. Sorry if this has been asked before, but I'd appreciate some feedback. Thanks.
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SteveT
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Post by SteveT on Dec 15, 2017 18:32:43 GMT
Rather too soon to tell whether they will suffer similar levels of defaults, certainly as regards their large property loans (several of which are connected via a common borrower). As with MT, they started out with small pawn loans, which remain very popular but there have been no new ones for several months AFAIK. Now pretty much entirely property-based.
One attraction is that their initial bridging loans (paying 12%) usually rank ahead of their subsequent development tranches (paying only 14% or 15%), and so offer much better value IMO.
An obvious downside is that interest stops accruing when you list something for sale on the SM, which can be very slow moving for the big loans that were "force-filled" with large cash-backs. However COL have recently agreed that, once a property loan has been "extended" beyond its original term, lenders can list parts for sale without losing interest.
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Post by caveman38 on Dec 15, 2017 18:43:25 GMT
Rather too soon to tell whether they will suffer similar levels of defaults, certainly as regards their large property loans (several of which are connected via a common borrower). As with MT, they started out with small pawn loans, which remain very popular but there have been no new ones for several months AFAIK. Now pretty much entirely property-based. One attraction is that their initial bridging loans (paying 12%) usually rank ahead of their subsequent development tranches (paying only 14% or 15%), and so offer much better value IMO. An obvious downside is that interest stops accruing when you list something for sale on the SM, which can be very slow moving for the big loans that were "force-filled" with large cash-backs. However COL have recently agreed that, once a property loan has been "extended" beyond its original term, lenders can list parts for sale without losing interest. Thanks for the reply Steve. In your opinion. Do you therefor think that their popularity as 2nd. on the poll, is based more then on the high yields rather than any historical reason.
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Post by Deleted on Dec 15, 2017 18:50:39 GMT
I think their popularity is based on good coms, a strict adherence to agreed timings and their youthfullness. The question we have to ask is, "is this the right policy and can they maintain it year after year?". Only time will tell and right now I'm holding back going full in, give it another 6 months and will review.
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SteveT
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Post by SteveT on Dec 15, 2017 18:52:00 GMT
Thanks for the reply Steve. In your opinion. Do you therefor think that their popularity as 2nd. on the poll, is based more then on the high yields rather than any historical reason. Whilst I like COL and (very selectively) lend there, I think their poll popularity is mostly down to their being young enough not yet to have suffered their first serious default. How they respond when they do will be much more revealing.
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SteveT
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Post by SteveT on Dec 15, 2017 18:54:03 GMT
I think their popularity is based on good coms, a strict adherence to agreed timings and their youthfullness. The question we have to ask is, "is this the right policy and can they maintain it year after year?". Only time will tell and right now I'm holding back going full in, give it another 6 months and will review. Not sure the recent decision to start extending 6 month property loans without offering lenders an exit route quite tallies with this!
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Post by Deleted on Dec 15, 2017 19:04:45 GMT
I think their popularity is based on good coms, a strict adherence to agreed timings and their youthfullness. The question we have to ask is, "is this the right policy and can they maintain it year after year?". Only time will tell and right now I'm holding back going full in, give it another 6 months and will review. Not sure the recent decision to start extending 6 month property loans without offering lenders an exit route quite tallies with this! Thanks Steve, I'd not noticed that, they go down my popularity slope then. Crikey, talk about losing confidence, that was one of the few things that impressed me
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ingwer
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Post by ingwer on Dec 15, 2017 20:03:08 GMT
I would also suggest that one of the main reasons to move to Collateral is the far superior level of communication. Collateral want to engage with investors. Secondly, only time will tell for sure, but it seems the Collateral level of DD is more thorough. I think most on here will know whose standards have fallen rather badly in the last 6 or so months.
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stub8535
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Post by stub8535 on Dec 15, 2017 20:39:39 GMT
There is still the glow of bling guiding people's feelings about col. Since March, when they started introducing property loans to the exclusion of bling the impression has changed in some. My thoughts when looking at their contracts for different bling and vehicle loans was thatbthey focus on detail, detail and detail in order to enhance legal security. I can not comment on the contracts for property or the due dilligence done. Communications have always been market leading imo. The platform, like many others, need to chase income from fees etc. They have decided this is the way to go. Others have branched out. Market invoice have moved into young and small SME loans for example, Moneything into unsecured and many into simple black box with target returns. Things are changing rapidly. Stay nimble, spread your risk.
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guff
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Post by guff on Dec 15, 2017 20:43:09 GMT
I would also suggest that one of the main reasons to move to Collateral is the far superior level of communication. Collateral want to engage with investors. Secondly, only time will tell for sure, but it seems the Collateral level of DD is more thorough. I think most on here will know whose standards have fallen rather badly in the last 6 or so months. Indeed. This year, Collateral Rep has consistently been engaging with this forum twice a day, unlike another Head of Communication's efforts. One can only hope this continues as the client base grows.
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sildenafil
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Post by sildenafil on Dec 15, 2017 22:54:27 GMT
Thanks for the reply Steve. In your opinion. Do you therefor think that their popularity as 2nd. on the poll, is based more then on the high yields rather than any historical reason. Whilst I like COL and (very selectively) lend there, I think their poll popularity is mostly down to their being young enough not yet to have suffered their first serious default. How they respond when they do will be much more revealing. I would say £214,000 worth of loans for vehicles which went into default would be classed as serious (considering all the bad press car loans have had recently). The way they have dealt with that I think has been impeccable so far with just £35,000 of the full amount left to be paid back (which I have faith will be completed on the due date). It certainly puts other platforms to shame, that's for sure.
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Post by df on Dec 16, 2017 6:40:42 GMT
Seeing as they appear to be popular in the poll , I felt I had to ask. I've invested in MT, SS, RS and a couple of others but am not familiar at all with these. They appear to be similar to SS with higher interest rates. Does that come with a higher risk. Are they getting the percentage of defaults as SS do. Sorry if this has been asked before, but I'd appreciate some feedback. Thanks. So far there were 4 defaulted loans to the same borrower, 3 were repaid and 1 is due in 4 days. These were vehicle grouped asset loans. None of property loans have defaulted yet, most repaid on time and those delayed weren't far from schedule. Very different from SS. Higher rate to lenders doesn't always mean that there is more risk. SS rate for borrowers is much higher than we get.
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pom
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Post by pom on Dec 16, 2017 8:27:13 GMT
Whilst I'm relieved the car loans have (hopefully) all worked out well, it doesn't really give us any indication what may happen WHEN one of these huge property loans goes wrong (it'll happen eventually) - different asset types and far more complex spanners that can be thrown in the works. I like Collateral, but I have a niggling feeling they might have gone into really big dev loans a bit too quickly.
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stub8535
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Post by stub8535 on Dec 16, 2017 10:18:42 GMT
@gordon, Could you give an indication of expertise utilised in choosing and contractually securing the property loans please? It may give some investors data that makes them less uneasy as you are still in relatively early stage in property loans.
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kaya
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Post by kaya on Dec 16, 2017 17:07:05 GMT
Best p2p platform in the known universe for speed of cash transfers, even better than MT. And the splitting into multiple tranches really does help liquidity, it is not just a perception. I was surprised at how quickly some Bolt** sold, despite there being tons available in other tranches.
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