Which Platforms does Bondmason Use

How do you know? 

Its a complete black box. Inside anything could be happening, and there's no FCA oversight. You send your money and pray that some of it comes back. It's a real Hail Mary!

Not necessarily. BM might have their own arrangements with lending firms that are different from if you lend direct.  I don't know for sure, but in my understanding 1.5% fee is enough to cover the cost of running BM business.

It's amazing how quickly these threads go off-topic.

Re rates:

The gross target return is stated before our fee, but after losses. We charge 1-1.5% pa. Thats it.

Our losses have been running at 0.39% pa since inception.

The average gross rate required is 8.39%.

We've long stated that we would rather see the target rate drop, than chase riskier loans.


Re FCA

Hoping for some news on this front in Q2 this year.

Thanks dan1

A good example of why we don't disclose the underlying platforms.

We focus on good quality loans with good quality lenders. We don't comment (implicitly or explicitly) on other aspects of their operating models which don't effect us, but which may impact the perceived quality of their P2P operations for other clients.

On Collateral, I'm sure they'll sort out their IT issues sooner rather than later. Give them some space and they'll probably solve it faster.

One benefit of BondMason is that we can usually pick up the phone and talk to these platforms directly, even during busy times, on behalf of all our clients.

Now it's known that Collateral has gone into administration, it's probably a good time to confirm whether or not they are one of the platforms that we are investing through

So, as it is now known - it wasn't just IT issues at Collateral. 

We are not in a position to disclose precise the nature of our conversations held, suffice to say we have been in contact with: 
 - the Collateral team
 - the Administrators; and
 - their lawyers 

In terms of our involvement with Collateral, we were pleased to work with them on their property lending opportunities. We invested a total of 2.48% of invested capital through Collateral, of which 0.78% has repaid and there is 1.69% is outstanding.


In each of the loans, there is security and the underlying borrower continues to repay.


We have offered to step in to work out any of the loans we are invested in (if needs be); for the benefit of all lenders (whether they have come through BondMason or not).  We will see if this is required.


It is important to understand the legal structuring:
 - Collateral UK Ltd, the operating company has gone into administration
 - The individual loans are bankruptcy remote, with security held by a separate security trustee - Collateral Security Trustee Ltd. The administration of the operating company should not represent a credit event on the underlying loans - as long as there is someone to manage the loan book (which is likely to be done by the administrator, and as we have also offered ourselves)


If there are any further material updates on this matter, and we feel we are able to share publicly, then we will do so.


In the mean time, we will continue to seek to ensure that these loans, and all other loans across 32 lending partners, repay in full and on time. 


My thoughts to any lender who has gone into Collateral loans directly:
 - ensure you have your documentation organised: hopefully you have a copy of all legal agreements including the loan contracts you have gone into;
 - ensure you understand what (and where) each security for each loan is held; and
 - give the administrator some time to establish the facts and prepare an approach to resolution.