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Post by Lep Recorn on Aug 5, 2014 14:31:20 GMT
Just received an email from Assetz with the subject line 'Record number of loans - Up to 12% pa with instant return'.
This would seem to state that 12% is available on aftermarket investment - could someone please say where?? Otherwise at best this seems careless, at worst is misleading advertising.
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oldgrumpy
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Post by oldgrumpy on Aug 5, 2014 14:35:55 GMT
Just received an email from Assetz with the subject line 'Record number of loans - Up to 12% pa with instant return'. This would seem to state that 12% is available on aftermarket investment - could someone please say where?? Otherwise at best this seems careless, at worst is misleading advertising. Loans 72, 73 and (and even 67) would seem to fit the bill currently. 1% a month on those.
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Post by Lep Recorn on Aug 5, 2014 15:24:09 GMT
Duhhhh!!! Sorree everybody!!
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unmadem
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Post by unmadem on Aug 5, 2014 16:51:50 GMT
aberystwyth 79 back in play so there is a 14% one.
Can't say I've had the email yet, suppose they might be going out in batches.
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Post by meggem on Aug 6, 2014 16:40:28 GMT
What I have noticed over the past 6 months is that rates for lenders have tumbled making Asset Capital much less competitive as a platform. This could underlie the expansion in loans and underwriting.
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Post by Ton ⓉⓞⓃ on Aug 6, 2014 21:05:52 GMT
What I have noticed over the past 6 months is that rates for lenders have tumbled making Asset Capital much less competitive as a platform. This could underlie the expansion in loans and underwriting. I hope you don't mind me putting you on the spot, but are you saying the quality has stayed the same, but rates have dropped?
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Aug 6, 2014 22:43:39 GMT
What I have noticed over the past 6 months is that rates for lenders have tumbled making Asset Capital much less competitive as a platform. This could underlie the expansion in loans and underwriting. I hope you don't mind me putting you on the spot, but are you saying the quality has stayed the same, but rates have dropped? Actually Ton you can only make a reasoned judgement on quality once loans have been repaid and you have all the facts at hand. I support the view elsewhere on here that the volume of loans above 10% has dropped in the last quarter. The only qualification I would make is that I should have said new loans. Sure there are loans above 10% on the AM but as some are for long term that should not be surprising. New loans above 10% apart from Aber, I fear not many!
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Post by chris on Aug 7, 2014 8:33:15 GMT
I hope you don't mind me putting you on the spot, but are you saying the quality has stayed the same, but rates have dropped? Actually Ton you can only make a reasoned judgement on quality once loans have been repaid and you have all the facts at hand. I support the view elsewhere on here that the volume of loans above 10% has dropped in the last quarter. The only qualification I would make is that I should have said new loans. Sure there are loans above 10% on the AM but as some are for long term that should not be surprising. New loans above 10% apart from Aber, I fear not many! Current live auctions range from 9% to 14% with 5 of the 9 being 10% or higher. On the aftermarket 8 of the 12 loans on offer are at 10% or above.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Aug 7, 2014 13:24:11 GMT
Actually Ton you can only make a reasoned judgement on quality once loans have been repaid and you have all the facts at hand. I support the view elsewhere on here that the volume of loans above 10% has dropped in the last quarter. The only qualification I would make is that I should have said new loans. Sure there are loans above 10% on the AM but as some are for long term that should not be surprising. New loans above 10% apart from Aber, I fear not many! Current live auctions range from 9% to 14% with 5 of the 9 being 10% or higher. On the aftermarket 8 of the 12 loans on offer are at 10% or above. Yes agreed Chris, lots on 10% and below but very few above 10% which was the statement I made.
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Post by chris on Aug 7, 2014 13:37:27 GMT
Current live auctions range from 9% to 14% with 5 of the 9 being 10% or higher. On the aftermarket 8 of the 12 loans on offer are at 10% or above. Yes agreed Chris, lots on 10% and below but very few above 10% which was the statement I made. Well 9 of the 21 loans on offer at the moment are above 10%, albeit a couple only just. There's still plenty of variety. As I've said before if you feel you have to have 12+% returns here today and you've already invested in all of our loans that are of interest then you're going to have to look at niche players. Zopa and RS are offering roughly 5-6.5%, lender averages on FC in terms of actual returns vary from a couple of percent if you're unlucky through to 7 - 8% with a few very carefully managed portfolios above that, and our lenders in general are getting returns of 10+%. We're offering better rates than our peers of similar scale or larger. We're in a competitive market place where the volume of loans of the type we're currently fulfilling at the rates you personally want to see with the security levels we demand are few and far between at the moment. Looking only at our lenders I'm sure we'd all love to be paying out 15+% on all our loans but there are commercial realities that stop that happening on top of our regulated duty to be fair to our borrowers. We're working on a plan to source some higher rate loans that meet our lending criteria, so we are listening to you and trying to adjust our offering, but that is going to take some time to put in place.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
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Post by merlin on Aug 7, 2014 14:29:42 GMT
Chris when it comes down to the nuts and bolts I am sure we are not far apart in our thinking. However the advertising that Assetz put out and which was the cause of this thread developing was to many of us misleading.
In my own case as I have explained elsewhere on here, I already have a wide spread of investments both in P2P and beyond. I also have nearly sixty years of diverse investment experience and believe I have acquired a pretty good understanding of how must markets work and behave. However P2P is relatively new both to the market and to me. Consequently I have been cautious in my approach to investing in this market but in the course of doing so I have acquired holdings in four P2P providers so have a fairly good idea of what others are offering and also some idea of their intended direction of travel.
When Assetz first launched I was very impressed with the manner in which it had been set up, its methods of conducting business, knowledgeable backing and its direction of travel. All were well thought through and the business staffed by a group of characters with depth of experience in the fields that really mattered including recovery. I was so impressed in fact that I told Joe Public what I thought in two press articles, extoling your virtues and pointing out your near USP of well founded security. None of what I said then incidentally would I withdraw now.
I have now reached the point where caution dictates I have reached a ceiling with my investments through Assetz. However I am quite prepared to maintain that level of investment into the future if at the same time I can maintain my return on the capital so far invested. At the end of this month I have potentially four bridging loans coming to maturity (I am sure I don't need to point them out) and then I will need to find a new home for the cash that will become available. There is no point in my investing in the AM because I have already invested in the loans that I chose in the past and don't want to over fill them. Todays money from FF has already been earmarked for Aber so I need four new loans at 12% pa soon ASAP.
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Post by meggem on Aug 7, 2014 16:00:48 GMT
I hope you don't mind me putting you on the spot, but are you saying the quality has stayed the same, but rates have dropped? Actually Ton you can only make a reasoned judgement on quality once loans have been repaid and you have all the facts at hand. I support the view elsewhere on here that the volume of loans above 10% has dropped in the last quarter. The only qualification I would make is that I should have said new loans. Sure there are loans above 10% on the AM but as some are for long term that should not be surprising. New loans above 10% apart from Aber, I fear not many! Thanks for the question Ton. My own impression is that for identical basis new loan rates have dropped by up to 2%. Whilst formerly 12% was common, 10% (or less) now seems to be the default and (in my view) if anything the quality of security has fallen rather than improved. I get the feeling that this accounts for the large update by borrowers but the need to complete most loans by underwriting.
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shimself
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Post by shimself on Aug 7, 2014 19:35:54 GMT
H**********y bridging loan 1.5% / month, I just bought some more
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pikestaff
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Post by pikestaff on Aug 7, 2014 21:54:51 GMT
We can't reasonably expect 12% to be widely available, with good security. I think "up to" is perfectly fair. And, as shimself poiints out, it is possible to do better.
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Post by chris on Aug 7, 2014 22:59:10 GMT
merlin - I do sympathise with you and of course your investment strategy is entirely your decision. Having spoken to the team there are a number of higher rate loans in the pipeline but we currently do not know which will pass our full DD or when any of them will be listed on the site. There's not a lot more that I can say other than to reiterate that as far as I'm aware at this point in time our platform is offering the best rates and security amongst all the comparable P2P lenders.
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