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Post by failedtheturingtest on May 12, 2018 10:01:14 GMT
I'm considering dipping a toe in Unbolted but I was a bit worried about some references to high cash drag that I saw in some comments in the forum. It sounds like one has to keep more than £1000 sitting in an Unbolted account in order to have a chance of getting in on loans, and that it takes a long time to get money lent out -- so the effective rate of return is much lower than advertised. Is this correct? What is your experience of how cash drag affects returns on Unbolted?
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invester
P2P Blogger
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Post by invester on May 12, 2018 10:04:39 GMT
Not true.
I routinely keep under £100 in there, it picks up a couple of £5 loans most days.
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archie
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Post by archie on May 12, 2018 11:06:43 GMT
There is cash drag. You'll notice it more after a few months as loans start to repay.
The amount held in cash should exceed the 'Maximum per loan' settings to achieve the best result.
The small £5 allocations are lenders chosen at random so you will always have a chance at those.
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stokeloans
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Post by stokeloans on May 12, 2018 11:30:09 GMT
I'm going through a period of repayments and as a result my cash holding has increased slightly
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markyg61
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Post by markyg61 on May 12, 2018 12:15:58 GMT
I've been trying Unbolted for about 2 months now. £900 has been paid in, £600 allocated to loans, £300 sitting there waiting, paid another £100 in this morning. On average I'm picking up 5 loans per day from £5 to about £8.
Autolend set at £50, £50 and £30
I suppose I'll get to a point where loans are being repaid as fast as new loans are being picked up.
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marka
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Post by marka on May 12, 2018 13:10:51 GMT
There is some cash drag, but its not terrible. The amount of cash you need to have "sitting waiting" varies according to your auto-lend settings. You won't need £1000 waiting unless your auto-lend is perhaps > £500 (and even then you wouldn't need it).
My settings are £250, £250, £250 and my cash balance is currently ~£400. I have a simple rule that if my cash drops below £200 I add another £250, and if it goes above £600 I withdraw £250. Works perfectly well for me and my XIRR after about 10 months is ~9.6%. Given that deposits are quicker now that they used to be I could probably afford to tweak that to reduce drag a little bit more but its not worth the effort.
In effect I have ~£10,000 earning interest and ~£400 not earning anything which seems a perfectly acceptable state of affairs to me.
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Post by df on May 17, 2018 7:59:17 GMT
There is some cash drag, but its not terrible. The amount of cash you need to have "sitting waiting" varies according to your auto-lend settings. You won't need £1000 waiting unless your auto-lend is perhaps > £500 (and even then you wouldn't need it). My settings are £250, £250, £250 and my cash balance is currently ~£400. I have a simple rule that if my cash drops below £200 I add another £250, and if it goes above £600 I withdraw £250. Works perfectly well for me and my XIRR after about 10 months is ~9.6%. Given that deposits are quicker now that they used to be I could probably afford to tweak that to reduce drag a little bit more but its not worth the effort. In effect I have ~£10,000 earning interest and ~£400 not earning anything which seems a perfectly acceptable state of affairs to me. I have my limits set at £25, £25, £25 and only ever pickup £5 fragments, perhaps once or twice a little bit more but never a £25 (over a period of around six months). Does having higher limits raise the chance of getting larger allocations or does it really only take effect if the loan is large enough and there is enough to allocate larger slices anyway? Yes, if you set up your limits higher you'll get larger allocations in larger loans.
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marka
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Post by marka on May 17, 2018 8:39:27 GMT
There is some cash drag, but its not terrible. The amount of cash you need to have "sitting waiting" varies according to your auto-lend settings. You won't need £1000 waiting unless your auto-lend is perhaps > £500 (and even then you wouldn't need it). My settings are £250, £250, £250 and my cash balance is currently ~£400. I have a simple rule that if my cash drops below £200 I add another £250, and if it goes above £600 I withdraw £250. Works perfectly well for me and my XIRR after about 10 months is ~9.6%. Given that deposits are quicker now that they used to be I could probably afford to tweak that to reduce drag a little bit more but its not worth the effort. In effect I have ~£10,000 earning interest and ~£400 not earning anything which seems a perfectly acceptable state of affairs to me. I have my limits set at £25, £25, £25 and only ever pickup £5 fragments, perhaps once or twice a little bit more but never a £25 (over a period of around six months). Does having higher limits raise the chance of getting larger allocations or does it really only take effect if the loan is large enough and there is enough to allocate larger slices anyway? Taking a quick look at my portfolio, my average loan size is a fraction over £25 (although my settings were lower for the first 3 or 4 months so that will have an effect on the average of course). the last loan over £100 was on 8/5/18 and the last £200 loan was on 19/4/18. The largest I have ever got (automatically) was £227.
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Post by df on May 17, 2018 20:13:23 GMT
Thanks marka and df . I had been looking to increase my UB investment and things had been dragging. However I think I'll wait for a bit given the rate drops making it a bit less attractive. My settings are 800/800/45 and cash balance varies in the area of £150-250. The largest auto-invest loan I ever had was just over £50, but I get a lot of £8-20 loan parts. If you increase your cash to £1000 you can get bigger chunks for larger loans. This might change after the rate drop, so it is probably better to wait and see what happens in the next few weeks. My worry is that there were no allocations yesterday and today...
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