j1
Posts: 61 
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Post by j1 on Mar 16, 2018 8:41:29 GMT
I'm only just picking up this story but I'm knee deep in Lendy and funding secure.
What should I (or do you) make of it?
Thanks!
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elliotn
Member of DD Central
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Post by elliotn on Mar 16, 2018 9:47:11 GMT
I'm only just picking up this story but I'm knee deep in Lendy and funding secure. What should I (or do you) make of it? Thanks! There are 30 pages to see what we make of it.
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michaelc
Member of DD Central
Say No To T.D.S.
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Post by michaelc on Mar 16, 2018 21:55:29 GMT
As you have 'Collateral' in the thread title, I would suggest that the facts are too few and not sufficiently understood to make much of it at all at this stage. We may know a little more behind the background as to recent events in five-or-so weeks time, but it is likely to take longer than that before there is a complete account and understanding of what transpired between the platform and the FCA. More generally, it's a timely reminder that: - Losses are to be expected
- P2P is amongst the riskiest forms of investment out there
- Losses are to be expected
- The viability of a platform is fragile and that having a loanbook into tens or hundreds of millions can not be taken as an indication of sustainability
- Losses are to be expected
- Diversity between loans on a platform as well as across multiple platforms is essential
- Losses are to be expected
- Don't invest more than you can afford to lose, because ....
- Losses are to be expected
A good list but there's one missing: - Delays are to be expected
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mason
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Post by mason on Mar 16, 2018 22:25:59 GMT
What should I (or do you) make of it? It's the Wild West of investing. Expect the unexpected.
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j1
Posts: 61
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Post by j1 on Mar 17, 2018 11:32:17 GMT
I get the general advice of "losses are to be expected" but is that particularly pertinent here?
Clearly there is no immediate hope of return, but the loans are still running right? There is no obvious reason I can see why defaults will be significantly higher? Eventually someone will buy the loan book right? (The market demand is proven, I'll buy some!)
Diversification across platforms is my key takeaway (but I find it very labour intensive to do so).
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Greenwood2
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Post by Greenwood2 on Mar 17, 2018 12:45:26 GMT
Optimistically everything is under control, but until the dust settles no one knows what the outcome will be.
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Post by mrclondon on Mar 17, 2018 12:48:24 GMT
I get the general advice of "losses are to be expected" but is that particularly pertinent here? Clearly there is no immediate hope of return, but the loans are still running right? There is no obvious reason I can see why defaults will be significantly higher? Eventually someone will buy the loan book right? (The market demand is proven, I'll buy some!) Diversification across platforms is my key takeaway (but I find it very labour intensive to do so). one answer to your question is in this post I made a couple of weeks ago, which attracted 17 likes at the time. The exact make up of the loan book, part bling, part vehicles, part property, part development sites, part ongoing development construction is a mix that would likely be a challenge for most to take on in its entireity. ABL have hinted they are willing to consider the possibility, I'm not aware of anyone else having stuck their head above the parapet (at least publicly).
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mason
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Post by mason on Mar 17, 2018 14:32:39 GMT
Diversification across platforms is my key takeaway (but I find it very labour intensive to do so). Well it's an interesting trade-off. With increasing diversification you limit your loss potential if any one platform goes pop, but you also increase your probability of being a lender in such a platform. There probably comes a point where it no longer makes sense to diversify any further. ATM, I find I need several platforms to get enough diversification among borrowers.
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kaya
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Post by kaya on Mar 17, 2018 20:00:36 GMT
I'm only just picking up this story but I'm knee deep in Lendy and funding secure. What should I (or do you) make of it? Thanks! I am entirely unimpressed. Give me all the supposed reasons/excuses/reasons that are floated about, and I remain entirely unimpressed. A complete shambolic shambles that anyone with anything to do with collateral should be ashamed about. And that's at best. But what do they say/think about it? We have no idea. They were quick to respond when more of our cash was wanted, but have nothing to say now.
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