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Post by extremis on Jan 17, 2018 18:53:17 GMT
I think this is an attempt to bring in more investors, or existing investors invest more funds (i.e. to expand quickly). Of course, it also benefits Mogo as the invested funds will be tight up long-term. As far as i understand, cashback is paid by Mintos, but maybe this was decided in collaboration with Mogo. Or Mogo saw the cashback on their long-term loans and decided to drop the rates. Anyway, i am not investing in a 60 month car loan unless it is offered at 15%.
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Post by amoult on Jan 18, 2018 13:41:58 GMT
Not in and of it self, but longer duration loans carry more risk and thus should be compensated by higher interest rates. Can't understand why anyone would pick 12% / 60 month loan over 13% / 12 month loan I think it would be more useful to compare the same rate, but different lengths ... But those were literally the interest rates that were available on primary market during previous cash back program. ..at least at the time when I checked. At that point there had probably been unusual demand for 60 month loans. editSame thing now.. there are 13% Mogo loans available ~16 month range, but all 60+ months are now 12% ¯\_(ツ)_/¯ makes no sense to me
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Post by itemor on Jan 18, 2018 13:59:55 GMT
But if you look only from Mogo side, then they see that 60m+ 12% loans goes out and they dont have to change %. So for they lower term seems to be bad and they are increasing %.
Well this is simple and one out of many explanations what can be true.
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Post by saraph on Jan 18, 2018 18:28:55 GMT
Another one appeared!
Lendo Cashback Campaign
Invest in Lendo loans with a maturity of 9 months or more and get a cashback of 1.5%.
Campaign period: 18.01.2018.-18.02.2018.
Enroll now to qualify for the cashback!
I also added this to the first post.
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kulerucket
Member of DD Central
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Post by kulerucket on Jan 18, 2018 22:09:40 GMT
On the other hand, by giving investors 5% up front, they basically destroy all competition and screw up most people's platform-wide diversification. It would hardly be just as effective if they simply competed with Mozipo and others. Personally I went all in on 14% 60m cashback loans with the intention of working to re-balance my diversification slowly afterwards. There is no way I'm going to do the same again any time soon. I don't think this new offer will attract much investment as those who were game would have already maxed out.
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Post by saraph on Jan 18, 2018 22:14:56 GMT
On the other hand, by giving investors 5% up front, they basically destroy all competition and screw up most people's platform-wide diversification. It would hardly be just as effective if they simply competed with Mozipo and others. Personally I went all in on 14% 60m cashback loans with the intention of working to re-balance my diversification slowly afterwards. There is no way I'm going to do the same again any time soon. I don't think this new offer will attract much investment as those who were game would have already maxed out. I also planned to do so. With Lendo joining in on the campaign, maybe we're in for a longer cashback ride than we expect.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Jan 19, 2018 7:58:06 GMT
On the other hand, by giving investors 5% up front, they basically destroy all competition and screw up most people's platform-wide diversification. It would hardly be just as effective if they simply competed with Mozipo and others. Personally I went all in on 14% 60m cashback loans with the intention of working to re-balance my diversification slowly afterwards. There is no way I'm going to do the same again any time soon. I don't think this new offer will attract much investment as those who were game would have already maxed out. I have tweaked the reinvestment settings so that I pick up cashback loans in preference.
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Post by itemor on Jan 22, 2018 18:49:37 GMT
On the other hand, by giving investors 5% up front, they basically destroy all competition and screw up most people's platform-wide diversification. It would hardly be just as effective if they simply competed with Mozipo and others. I agree with that. But after campaign ends and people realise that they have too many mogo loans they most likely start to want get other loans to portfolio. This might lead to low amount for mogo.
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0risk
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Post by 0risk on Jan 26, 2018 13:23:02 GMT
Mintos is a bit late in processing deposits. Maybe there's a big demand because of these campaigns. I am increasing my position.
A 4% cashback on 48-month loan is like improving a 13% return to 14% return. A good thing I've just noticed is that a 13% return is less likely to be bought back early by an originator than a 14%.
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Post by itemor on Jan 29, 2018 8:24:02 GMT
Mintos is a bit late in processing deposits. Maybe there's a big demand because of these campaigns. Cashback money didnt come in 6 days either. Maybe because of weekend. Will see today.
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Post by explorep2p on Jan 29, 2018 10:35:53 GMT
Mintos is a bit late in processing deposits. Maybe there's a big demand because of these campaigns. I am increasing my position. A 4% cashback on 48-month loan is like improving a 13% return to 14% return. A good thing I've just noticed is that a 13% return is less likely to be buyback early by an originator than a 14%. The extra return is more than 1%pa. The loans are amortising so for a 4 year loan the average life is around 2.5 years. Once you take into account prepayments and buybacks the average life is even shorter. So the effective extra return is at least 2% pa on average funds invested.
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0risk
Member of DD Central
Posts: 217
Likes: 202
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Post by 0risk on Jan 29, 2018 11:24:06 GMT
Mintos is a bit late in processing deposits. Maybe there's a big demand because of these campaigns. Cashback money didnt come in 6 days either. Maybe because of weekend. Will see today. You can ask support for a quicker processing
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IFISAcava
Member of DD Central
Posts: 3,664
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Post by IFISAcava on Jan 29, 2018 13:01:31 GMT
Mintos is a bit late in processing deposits. Maybe there's a big demand because of these campaigns. I am increasing my position. A 4% cashback on 48-month loan is like improving a 13% return to 14% return. A good thing I've just noticed is that a 13% return is less likely to be buyback early by an originator than a 14%. The extra return is more than 1%pa. The loans are amortising so for a 4 year loan the average life is around 2.5 years. Once you take into account prepayments and buybacks the average life is even shorter. So the effective extra return is at least 2% pa on average funds invested. So the current 12% loans are equivalent to the 14% loans that were available before the cashback offer then...
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Post by saraph on Jan 30, 2018 14:14:27 GMT
The extra return is more than 1%pa. The loans are amortising so for a 4 year loan the average life is around 2.5 years. Once you take into account prepayments and buybacks the average life is even shorter. So the effective extra return is at least 2% pa on average funds invested. So the current 12% loans are equivalent to the 14% loans that were available before the cashback offer then... Even more if you buy loans that have status 16-30 days late or rarely even 31-60 days.
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Post by tomas on Jan 31, 2018 6:22:53 GMT
So the current 12% loans are equivalent to the 14% loans that were available before the cashback offer then... Even more if you buy loans that have status 16-30 days late or rarely even 31-60 days. I do not think that you will receive cashback buying on the secondary market.
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