Post by oldgrumpy on Mar 9, 2018 12:51:02 GMT
With AC's and other platforms' very suspect performance on wind turbine loans recently, AC has decided to drop the already moderate 8% rate on this one to 5·6%.
I suppose AC has so much cash sloshing around in QAA that they can afford to do that, but I will definitely not be taking on all the risk for a paltry 5·6%. Far too low for an apparently unchanged risk.
Maybe they are just testing us to find out how low they can go and get away with it.
One of the attractions of P2P was that if we had to take a default on any particular loan, the rates of interest on other loans was such that we could make up all or some of the incurred losses in a reasonable period of time. With rates at a 5%+ level (how long before they are sub 5%?
) this is no longer the case. Platforms, (with the implication that the risks on these loans are substantially less) clearly see ths as a good strategy - but for whom?
ed Apologies for the moaning post - I ran out of bananas this morning.
I suppose AC has so much cash sloshing around in QAA that they can afford to do that, but I will definitely not be taking on all the risk for a paltry 5·6%. Far too low for an apparently unchanged risk.
Maybe they are just testing us to find out how low they can go and get away with it.
One of the attractions of P2P was that if we had to take a default on any particular loan, the rates of interest on other loans was such that we could make up all or some of the incurred losses in a reasonable period of time. With rates at a 5%+ level (how long before they are sub 5%?
) this is no longer the case. Platforms, (with the implication that the risks on these loans are substantially less) clearly see ths as a good strategy - but for whom?ed Apologies for the moaning post - I ran out of bananas this morning.
