m2btj
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Post by m2btj on Feb 16, 2018 11:18:54 GMT
I tend to use the same method I used on FC, small amounts in each loan lets say £20 per loan to achieve diversification. I do have around 20% put into the other accounts however (PF is always attractive). My FC strategy was based on investing a small sum of say £20 per loan on just over 600 loans. In gambling terms it would be known as spread betting & wasn't worth taking time to do any serious DD. My returns have been 6.9%. I invest £250 tranches with AC MLA & will always read the CR.
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registerme
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Post by registerme on Feb 16, 2018 11:26:09 GMT
I tend to use the same method I used on FC, small amounts in each loan lets say £20 per loan to achieve diversification. I do have around 20% put into the other accounts however (PF is always attractive). My FC strategy was based on investing a small sum of say £20 per loan on just over 600 loans. In gambling terms it would be known as spread betting & wasn't worth taking time to do any serious DD. My returns have been 6.9%. I invest £250 tranches with AC MLA & will always read the CR. Just an fyi, that's not what spread betting is - " a form of betting in which the bettor wins or loses money according to the margin by which the value of a particular outcome varies from the spread of expected values quoted by the bookmaker".
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Post by jevans4949 on Feb 16, 2018 11:43:18 GMT
Doing-it-yourself works fairly well for me, especially now that Assetz has a good stream of loans.
Do spend 5 minutes reading the Credit Report, to get a flavour of the project, and weed out what appear to be the obvious losers. Ask yourself how much time you want to spend worrying about losing £10, £100, £10,000 (given that P2P is a business where it's going to happen). Best set yourself a limit per borrower, and stick with it.
On that basis, decide what your stake is going to be for any loan, and stick in a buy order on MLA. Hopefully you will over the course of time get your requested amount. MLA tells you the total of your outstanding orders. Try to keep this at several hundred pounds, which will gradually be filled. When this begins to run down, check the newest loans released and decide which ones you want to add.
Beware of multiple loans to the same borrower. If one goes pear-shaped, then it's likely the others will as well.
Given that this business involves gambling, when the fun stops, stop.
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ashtondav
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Post by ashtondav on Feb 16, 2018 12:54:25 GMT
Gambling? Come on over to the dark side that is FundingSecure - now that's a real gamble. AC pales in comparison...
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happy
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Post by happy on Feb 16, 2018 16:25:06 GMT
I have followed a similar strategy to the one you suggested vaelin and invested in the MLA with a mid 5 figure investment in around 300 loans. Without the PF protection I have adopted a capital risk reduction strategy as follows: assuming I am happy with the basis of the loan and exit strategy I utilise a formula that factors in the LTV, the asset type (residential, commercial, land, etc) and the underlying business type to assess what I am going to invest in. Add to that my gut-feel 'how much do I like the loan' as a percentage and I then invest that amount. So for example, for higher LTV loans to hotels, restaurants and pubs I may only invest sub £100 but for a low LTV residential BTL outside London or solid business releasing equity from an unencumbered property I will more happily lend into 4 figures. It does mean I typically invest a lot less in the higher rate loans but overall I think my risks are much reduced So far I am returning just under 8% with only 0.3% of loans currently in default and likely capital losses of around £60 after over 2 years investing so not so bad. |
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Post by stuartassetzcapital on Feb 16, 2018 18:35:07 GMT
Hello all. In, or shortly after, the major new system release due shortly it is intended to bring in bespoke manual lending mandates - it will address what I think this thread was commenced to discuss, that is auto invest in a wide range of loans with user defined simple criteria (like LTV, rate etc) and no PF protection. We don't earn anything extra from the lower rate IA accounts as it all goes to the PF so this new feature will not affect us, just to confirm the questions above.
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angrysaveruk
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Post by angrysaveruk on Feb 16, 2018 18:52:32 GMT
Hello all. In, or shortly after, the major new system release due shortly it is intended to bring in bespoke manual lending mandates - it will address what I think this thread was commenced to discuss, that is auto invest in a wide range of loans with user defined simple criteria (like LTV, rate etc) and no PF protection. We don't earn anything extra from the lower rate IA accounts as it all goes to the PF so this new feature will not affect us, just to confirm the questions above. That sounds great. I will be using it for sure
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loadsahope
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Post by loadsahope on Feb 16, 2018 18:54:09 GMT
Sorry to pour cold water onto what appears a perfectly sensible theory but it doesn't work; AC issue 100% of new loans to their own accounts, usually QAA, & then at some point later, which can be days or weeks they decide (a manual decision but no clarity on who/why/when or how much) to release an uncertain % to the SM for the other accounts including MLIA to fight over. So any popular/small or high % loans lead to allocations of <£10/account, often just a few £'s, so it proves impossible to build any meaningful holding in anything other than the largest &/or most unpopular loans.
Often after 12 months with constant targets & money available holdings still don't reach 3 figures so unless you have a very small overall investment the system simply doesn't work. Why do AC continue with this system when demand from just MLIA accounts is so often unsatisfied? Well they say it is how the system was originally set up & changing it would involve too much IT work & now that other collective accounts are more important it might not seem fair to allow MLIA holders a set % share of each loan - but MLIA accounts are still important & there are no plans to discontinue them! Puzzled, as this is not my experience. Of the loans that have come to market in the last 8 months or so that I wanted to buy into via the MLA, I have reached my target (in the hundreds) in almost every one, fairly quickly. Similar for me, though my target is usually hundred-ish
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angrysaveruk
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Post by angrysaveruk on Feb 16, 2018 18:59:23 GMT
Puzzled, as this is not my experience. Of the loans that have come to market in the last 8 months or so that I wanted to buy into via the MLA, I have reached my target (in the hundreds) in almost every one, fairly quickly. Similar for me, though my target is usually hundred-ish I always bid more than I want, then sell the excess afterward
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Post by chris on Feb 16, 2018 19:50:03 GMT
Hello all. In, or shortly after, the major new system release due shortly it is intended to bring in bespoke manual lending mandates - it will address what I think this thread was commenced to discuss, that is auto invest in a wide range of loans with user defined simple criteria (like LTV, rate etc) and no PF protection. We don't earn anything extra from the lower rate IA accounts as it all goes to the PF so this new feature will not affect us, just to confirm the questions above. Just to clarify and set expectations, bespoke accounts will be part of the second wave of updates not the initial release. I expect that to be 1 - 2 months after initial release.
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Post by chris on Feb 16, 2018 19:53:14 GMT
Similar for me, though my target is usually hundred-ish I always bid more than I want, then sell the excess afterward Shouldn't be needed, the amount you request doesn't influence the amount you are allocated other than the obvious limit.
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Post by vaelin on Feb 16, 2018 19:55:34 GMT
Hello all. In, or shortly after, the major new system release due shortly it is intended to bring in bespoke manual lending mandates - it will address what I think this thread was commenced to discuss, that is auto invest in a wide range of loans with user defined simple criteria (like LTV, rate etc) and no PF protection. We don't earn anything extra from the lower rate IA accounts as it all goes to the PF so this new feature will not affect us, just to confirm the questions above. Perfect. May I suggest that one of the variables open to lenders should be the ability to set a maximum allocation per loan. For example, if I set the maximum at £100, then the algorithm will not allocate more than that per loan. Then if I want to allocate more manually to any given loan, I can. This would be a really useful tool for lenders to enforce their own personal risk tolerance on their portfolio.
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