empirica
Member of DD Central
Posts: 326
Likes: 235
|
Post by empirica on Feb 1, 2018 22:33:38 GMT
Coincidentally, Lendy have updated their published Defaut Rate, saying -
Lendys current default rate is 10.4% which is in line with the P2P sector average.
As of 01/02/2018
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011 
Likes: 1,013
|
Post by Godanubis on Feb 2, 2018 0:00:47 GMT
If Ly allowed lenders to sell their loans at a premium/discount to those who want to invest or wait and get the bonus it would be useful.
I can't see any downside to them offering this facility like others do.
Perhaps someone could say why the don't.
Interest earned and not paid to investors while parts are up for sale should be put into a fund and used to
pay capital loss in "Fire Sale" of duff loans
|
|
|
|
Post by charliebrown on Feb 2, 2018 0:19:15 GMT
I’d assume that just as our returns are dwindling from 12% to 6% then Lendy revenues are also dwindling. Lendy has offices to pay for, salaries to pay and by the looks of it a huge outlay to receivers/ legal fees to pursue all these bad loans. Just as early investors made their money and then got out (according to comments posted on this forum) the Lendy Directors are sure to have made an absolute killing and wouldn’t be too concerned. I’m deeply worried by this current situation, a lot of loans are in a terrible mess and it will take a lot more than a legal process to fix them.
|
|
|
|
Post by GSV3MIaC on Feb 2, 2018 8:55:42 GMT
And don't forget Cowes!!
|
|
|
|
Post by charliebrown on Feb 2, 2018 9:51:32 GMT
That’s rubbing salt in the wounds 
|
|
southport
Member of DD Central
Posts: 125
Likes: 88
|
Post by southport on Feb 2, 2018 10:55:55 GMT
Why is Lendy so slow in taking action on defaulted loans. My average portfolio should be seeing a return of 11.5% but as a result of their poor management of loans in default, when I got my interest payment today it equated to a very low 6.3% which is very concerning. The loans are supposed to be secured with a maximum LTV of 70% so why are they not take action on them, especially some that I are sitting at nearly 2 years in default! Lendy (then Savings stream) were the first P2P platform I invested in and for the first couple of years I got my 1% a month. The last year however has seen shocking returns. Alarm bells are starting to ring for me... Some 42% of all money loaned via Lendy, around 78.5 mil, is either in loans which are IA or in default. That is a lot of investors not getting interest on their funds. I know that loan overruns should be expected but to have 42% of investors cash sitting in limbo is a tad excessive in my view and who knows how much of it we'll get back?
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Feb 2, 2018 11:38:16 GMT
Why is Lendy so slow in taking action on defaulted loans. My average portfolio should be seeing a return of 11.5% but as a result of their poor management of loans in default, when I got my interest payment today it equated to a very low 6.3% which is very concerning. The loans are supposed to be secured with a maximum LTV of 70% so why are they not take action on them, especially some that I are sitting at nearly 2 years in default! Lendy (then Savings stream) were the first P2P platform I invested in and for the first couple of years I got my 1% a month. The last year however has seen shocking returns. Alarm bells are starting to ring for me... Some 42% of all money loaned via Lendy, around 78.5 mil, is either in loans which are IA or in default. That is a lot of investors not getting interest on their funds. I know that loan overruns should be expected but to have 42% of investors cash sitting in limbo is a tad excessive in my view and who knows how much of it we'll get back? This reminds me of banks sitting on 'assets' worth £xxm which in reality were worth only a fraction of that. But they couldn't offload them and face reality without it affecting their fat bonuses bottom line - so the charade went on. These false figures are not just restricted to LY
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Feb 2, 2018 11:50:57 GMT
What is the default rate calculated on? Number of loans, or loan volume?
I am sure there is at least one loan which has not paid back all the capital but technically lenders made no loss because theoretically the excess is being pursued.
I don't actually think there have been many new loans over the past 6 months. The main opportunities to invest are simply new tranches of existing loans and I learned the lesson from Exeter.
Given the delays in actually drawing the things down, ie R*****ham things seem really slow there at the moment. Operationally given the number of bad loans they must have their hands full.
I believe they are now approaching a point where they will do an FC and not allow people to choose loans, and pretend that this is what we wanted all along.
|
|
southport
Member of DD Central
Posts: 125
Likes: 88
|
Post by southport on Feb 2, 2018 12:00:00 GMT
What is the default rate calculated on? Number of loans, or loan volume? I am sure there is at least one loan which has not paid back all the capital but technically lenders made no loss because theoretically the excess is being pursued. I don't actually think there have been many new loans over the past 6 months. The main opportunities to invest are simply new tranches of existing loans and I learned the lesson from Exeter. Given the delays in actually drawing the things down, ie R*****ham things seem really slow there at the moment. Operationally given the number of bad loans they must have their hands full. I believe they are now approaching a point where they will do an FC and not allow people to choose loans, and pretend that this is what we wanted all along. This has already been suggested by Lendy. Apparently it's by popular demand? p2pindependentforum.com/post/226258/thread
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 2, 2018 23:54:42 GMT
Lendy make money by originating more loans = more profit
Higher LTV means more money lent = more profit.
They also reduced rates, due to high lender demand = more profit
If a loan pays back, the only thing affects is existing lender's re lending. If there is enough new lender's to replace them, why make more than a token effort in recoveries, more profit can be made from originating new loans
Several effectively new platforms with loans of 6m to a couple years are now seeing loans mature, which is when most default. A % of these are bound to default. Lender's have got used to a 1% monthly return, as loans were in the early phase. Now as defaults hit, the true returns are being seen and the rate including defaults and loss of interest.
Later we will see the loss of capital, which will be a lot worse than mere loss of interest
|
|
