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Post by Ace on May 25, 2018 18:33:39 GMT
I chucked an extra £1k in my troublesome account today and got 21 PM loans of £20 and a single SM loan of £8.50. Happy with that. Unallocated cash now at 45.7%.
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bigfoot12
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Post by bigfoot12 on May 26, 2018 8:16:32 GMT
I am in a similar position. I wonder if there is a large chunk of money from last minute ISAs at the beginning of April and the early bird new ISAs just after that which is taking a while to deploy. Any new deposit since then would invest very quickly until it gets to this level. I am a little surprised by the number of secondary market transactions; it seems bigger than I would have expected. larger number of SM transaction? like more than 30% of the new deposit money? At the time I posted (Sorry for delay in replying) I was receiving significantly more than 50% of loans (by number) from the SM. As these were smaller than primary loans the amount by value was a bit over 40%. This has changed significantly recently. Both have dropped substantially as my invested proportion increases, but SM by much more - now accounting for less than 10% by value. Two possible explanations come to mind. One is that SM and PM have different allocation algorithms, and the other is that there is a lot of selling going on to move money into ISAs. Is there a transfer (from non ISA to ISA) on FC?
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benaj
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Post by benaj on May 26, 2018 8:26:54 GMT
I have been told by FC PM loans are only formed on weekdays. This is an useful information to manage PM loans matching.
When FC lends out your idle fund quickly, the chance of matching PM is extremely high. When it is not matching more than 1 PM loan a day within your account, then it is more likely getting SM loans.
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bigfoot12
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Post by bigfoot12 on May 26, 2018 8:44:09 GMT
I have been told by FC PM loans are only formed on weekdays. This is an useful information to manage PM loans matching. When FC lends out your idle fund quickly, the chance of matching PM is extremely high. When it is not matching more than 1 PM loan a day within your account, then it is more likely getting SM loans. My experience also shows that PM loans are (working) weekdays only. The averages in my previous post were for 7 days in all cases. However most weekends are quieter than nearby weekdays for SM loans (in my 3 week experience).
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Post by jonathan on May 29, 2018 11:10:11 GMT
Funding Circle really should show you the overall return which includes your unallocated cash.
Is the idea to open multiple accounts and remove the unallocated funds when loans dry up? around the 45% mark?
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benaj
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Post by benaj on May 29, 2018 11:31:15 GMT
Since this morning, FC has lent out more 25 loans, and I have 11 matched.
There are at least 50 new loans everyday. The algorithm is designed to optimise return, once you have 100 loans in the portfolio, it seems to be switching to slow lending mode.
it still can match loans quickly depending the portion of new deposit money.
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Post by df on May 29, 2018 21:50:26 GMT
Since this morning, FC has lent out more 25 loans, and I have 11 matched. There are at least 50 new loans everyday. The algorithm is designed to optimise return, once you have 100 loans in the portfolio, it seems to be switching to slow lending mode. it still can match loans quickly depending the portion of new deposit money. Nothing matched for me since last Friday. I don't have much available funds, can only buy 1 loan, does algorithm prioritise accounts with larger amounts waiting?
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Post by Ace on May 29, 2018 23:20:16 GMT
Since this morning, FC has lent out more 25 loans, and I have 11 matched. There are at least 50 new loans everyday. The algorithm is designed to optimise return, once you have 100 loans in the portfolio, it seems to be switching to slow lending mode. it still can match loans quickly depending the portion of new deposit money. Nothing matched for me since last Friday. I don't have much available funds, can only buy 1 loan, does algorithm prioritise accounts with larger amounts waiting? Yes. See this post from earlier in this thread for FCs explanation. My account had eleven £20 loans and a small SM loan allocated today. My unallocated fund percentage is down to 40% now, so I'm guessing that I'm unlikely to get further allocations tomorrow.
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benaj
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Post by benaj on May 30, 2018 7:17:27 GMT
FC formed at least 90 new loans yesterday, I have 17 PM loans matched.
I suppose FC matching algorithm is not simple to understand, it has to do the job for 79000+ investors and there are £2.37 million worth new loans daily. Some 200k has 3500 investors while some 50k loans have 800-900 investors, average loan part size is around £60.
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benaj
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Post by benaj on May 30, 2018 20:44:09 GMT
I added new fund for 100 loans today, got 41 PM loans matched.
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Post by jonathan on May 30, 2018 21:03:56 GMT
I've had 5 loans , and about 10 small part loans in 3 weeks. I've removed all my unallocated funds now....
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Stonk
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Post by Stonk on May 30, 2018 21:31:34 GMT
7 working days ago I was stuck stubbornly at 40% uninvested. Since then I have become almost fully invested. The majority of it happened within the last 2 days.
It was as if the algorithm spotted it was doing nothing for me, and woke up. I can't believe that a 40% supply/demand "limit" evaporated so suddenly and so completely.
One thing I notice is that it has dished me a load of very low rate loans -- lots at 5.9% and some even lower -- which has brought my estimated rate down a good few tenths. Possibly it was trying to maintain my "estimated fully diversified return" where it was at 7.5%, and eventually decided it could not, thus making lower rate loans available for me.
I see other people are getting a fair bit off the secondary market. This has not been my experience. Of my first deposit into this new FC ISA, only 0.17% was invested from the SM. I would have liked a bit more. A lot of these new loans seem, well, a touch shaky ...
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Post by Ace on May 31, 2018 0:37:11 GMT
My account had eleven £20 loans and a small SM loan allocated today. My unallocated fund percentage is down to 40% now, so I'm guessing that I'm unlikely to get further allocations tomorrow. I'm obviously a rubbish guesser. I got thirty five £20 loans allocated today and three smaller SM loans. My unallocated funds percentage is now down to about 22%. It seems that the ratio of loans to new funds is shifting our way at last. Like Stonk said; the rates are a tad lower. I'm generally happy though as it's much better than having dead money hanging around.
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bigfoot12
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Post by bigfoot12 on May 31, 2018 17:15:50 GMT
My account got within a few percent of fully invested. (I've since topped it up to bring my net investment to a round number to make reconciliation a little easier.)
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benaj
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Post by benaj on May 31, 2018 19:14:17 GMT
Got another 37 PM loans today, but the rate overall seems to be less than fund matched at the end of March. Currently Gross yield is 10.9% for my fund added on 21st May.
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