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Post by bobthebuilder on May 21, 2018 19:31:42 GMT
Until this month I used to see a flurry of interest payments at the start of the month and then interest payments on the remaining loan positions at regular intervals throughout the rest of the month. In May I haven't seen a single interest payment since 9/5 despite having 110 different loan positions (not including those in recovery or on the watch list). stevefindlay Have you changed your procedures to only pay interest on one day each month? If not, what has happened to all the interest payments due recently?
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Greenwood2
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Post by Greenwood2 on May 21, 2018 20:03:56 GMT
I also notice my % invested has dropped like a brick recently, looks like something is going on, or is wrong.
And my defaults have gone up a lot!
Why can't I reduce my exposure per loan to less than 1%, it is too high and I am suffering from that in terms of defaults.
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zlb
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Post by zlb on May 21, 2018 20:30:20 GMT
I also notice my % invested has dropped like a brick recently, looks like something is going on, or is wrong. And my defaults have gone up a lot! Why can't I reduce my exposure per loan to less than 1%, it is too high and I am suffering from that in terms of defaults. it was stated somewhere, prob in the thread 'bondmason would be better if...', that their intent is/was to change diversification. The % diversification model causes problems on other platforms but they don't change either.
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Post by df on May 22, 2018 9:30:03 GMT
Until this month I used to see a flurry of interest payments at the start of the month and then interest payments on the remaining loan positions at regular intervals throughout the rest of the month. In May I haven't seen a single interest payment since 9/5 despite having 110 different loan positions (not including those in recovery or on the watch list). stevefindlay Have you changed your procedures to only pay interest on one day each month? If not, what has happened to all the interest payments due recently?
I've done my last audit on 8th May and my account balance has increased since, so I definitely had some interest paid in the last two weeks.
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TheDriver
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Post by TheDriver on May 22, 2018 11:27:43 GMT
FWIW, my recent experience:
1. Investment level dropped to a low of 92% in early May, but in the last week has recovered to 98%.
2. According to the "new" Capital Deployed graph, my Account Balance has been creeping up steadily, so presume amortising repayments are continuing - although I can find no direct view of these, only fully repaid positions. ( The graph seems to exclude accruals, so the increases must be actual repayments )
Edit: I didn't look closely enough at the exact figures, and my balance has in fact been reducing steadily - since 9 May!
3. Last year I was getting an average of about 10 loans Repaid each month - this year I have only had 5 in total ie. 1 a month!
Edit: On closer review the dates are of Purchase, so I've no idea when they were repaid without working backwards from interest received! The feature of column headings disappearing as soon as you scroll is disconcerting and inconvenient.
4. My Watchlist has almost doubled recently ( to 13.5% ) although Recoveries remain at 3.5% and no Write-offs as yet.
So, after 14 months ( almost 12 months fully invested ) my account is not in the state of equilibrium I was hoping for, and therefore am reluctant to increase my investment.
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garfield
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Post by garfield on May 22, 2018 12:11:42 GMT
I'm not making further financial decisions until we see details of the expected Bond and (hopefully) IFISA products. I'm very happy with my first 6 months with BM.
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savernake
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Post by savernake on May 22, 2018 15:00:47 GMT
I'm not making further financial decisions until we see details of the expected Bond and (hopefully) IFISA products. I'm very happy with my first 6 months with BM. If my understanding is correct, the forthcoming bond IS the IFISA product. I don't think BM are planning to launch any other IFISA products are they?
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garfield
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Post by garfield on May 22, 2018 15:53:30 GMT
I'm not making further financial decisions until we see details of the expected Bond and (hopefully) IFISA products. I'm very happy with my first 6 months with BM. If my understanding is correct, the forthcoming bond IS the IFISA product. I don't think BM are planning to launch any other IFISA products are they? I read that you will be able to invest in the bond either inside or outside an ISA wrapper. I've not heard of any other ISA products.
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Post by stevefindlay on May 22, 2018 19:27:04 GMT
Picking up on a few things in this thread:
(1) The bond product should be available within an IF ISA, but you should also be able to invest directly.
(2) The cash deployed chart excludes accrued interest.
(3) Interest payments come though as they come through - not just at month end. Although we are aware of a batch that need processing, so there have been a few delays on this over the last 7-10 days. This shouldn't effect your overall return.
(4) If you have any queries or concerns with respect to your specific account, please call us 01582 802 000 or drop an email: invest@bondmason.com. We are happy to take a look.
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Post by stevefindlay on May 22, 2018 19:34:19 GMT
FWIW, my recent experience: 1. Investment level dropped to a low of 92% in early May, but in the last week has recovered to 98%. 2. According to the "new" Capital Deployed graph, my Account Balance has been creeping up steadily, so presume amortising repayments are continuing - although I can find no direct view of these, only fully repaid positions. ( The graph seems to exclude accruals, so the increases must be actual repayments ) Edit: I didn't look closely enough at the exact figures, and my balance has in fact been reducing steadily - since 9 May! 3. Last year I was getting an average of about 10 loans Repaid each month - this year I have only had 5 in total ie. 1 a month! Edit: On closer review the dates are of Purchase, so I've no idea when they were repaid without working backwards from interest received! The feature of column headings disappearing as soon as you scroll is disconcerting and inconvenient. 4. My Watchlist has almost doubled recently ( to 13.5% ) although Recoveries remain at 3.5% and no Write-offs as yet. So, after 14 months ( almost 12 months fully invested ) my account is not in the state of equilibrium I was hoping for, and therefore am reluctant to increase my investment. I'd be interested to know what your net return has been over the last 12 months? (If you are happy to share it) On a related matter - we often debate whether we are sharing too much information on BM. I believe transparency is important, and the information should be available to those who want it. Others consider that a simple account balance and return figure is enough (similar to RS) - but because we show all the detail, clients may feel compelled to trawl through it. I suspect most of the P2P Forum members are at the more active end of the investment community though, and prefer to see as much as possible. Any thoughts?
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Post by df on May 22, 2018 21:03:43 GMT
FWIW, my recent experience: 1. Investment level dropped to a low of 92% in early May, but in the last week has recovered to 98%. 2. According to the "new" Capital Deployed graph, my Account Balance has been creeping up steadily, so presume amortising repayments are continuing - although I can find no direct view of these, only fully repaid positions. ( The graph seems to exclude accruals, so the increases must be actual repayments ) Edit: I didn't look closely enough at the exact figures, and my balance has in fact been reducing steadily - since 9 May! 3. Last year I was getting an average of about 10 loans Repaid each month - this year I have only had 5 in total ie. 1 a month! Edit: On closer review the dates are of Purchase, so I've no idea when they were repaid without working backwards from interest received! The feature of column headings disappearing as soon as you scroll is disconcerting and inconvenient. 4. My Watchlist has almost doubled recently ( to 13.5% ) although Recoveries remain at 3.5% and no Write-offs as yet. So, after 14 months ( almost 12 months fully invested ) my account is not in the state of equilibrium I was hoping for, and therefore am reluctant to increase my investment. I'd be interested to know what your net return has been over the last 12 months? (If you are happy to share it) On a related matter - we often debate whether we are sharing too much information on BM. I believe transparency is important, and the information should be available to those who want it. Others consider that a simple account balance and return figure is enough (similar to RS) - but because we show all the detail, clients may feel compelled to trawl through it. I suspect most of the P2P Forum members are at the more active end of the investment community though, and prefer to see as much as possible. Any thoughts? I can't see any details on loan repayments like on some other auto-lend accounts. For me personally it doesn't matter. I'm in too many loans and platforms to keep an eye on every single repayment. I see BM as fire and forget (let professionals do it for you). 6.5% projected net return is not worth if it required a lot of monitoring. I'm happy with a simple account balance and return figure, but many investors would like to view as many detail as possible. I don't think sharing more information will deter investors who prefer simplicity - as long as summary page is simple.
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TheDriver
Member of DD Central
Slightly bonkers
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Post by TheDriver on May 24, 2018 8:24:58 GMT
FWIW, my recent experience: 1. Investment level dropped to a low of 92% in early May, but in the last week has recovered to 98%. 2. According to the "new" Capital Deployed graph, my Account Balance has been creeping up steadily, so presume amortising repayments are continuing - although I can find no direct view of these, only fully repaid positions. ( The graph seems to exclude accruals, so the increases must be actual repayments ) Edit: I didn't look closely enough at the exact figures, and my balance has in fact been reducing steadily - since 9 May! 3. Last year I was getting an average of about 10 loans Repaid each month - this year I have only had 5 in total ie. 1 a month! Edit: On closer review the dates are of Purchase, so I've no idea when they were repaid without working backwards from interest received! The feature of column headings disappearing as soon as you scroll is disconcerting and inconvenient. 4. My Watchlist has almost doubled recently ( to 13.5% ) although Recoveries remain at 3.5% and no Write-offs as yet. So, after 14 months ( almost 12 months fully invested ) my account is not in the state of equilibrium I was hoping for, and therefore am reluctant to increase my investment. I'd be interested to know what your net return has been over the last 12 months? (If you are happy to share it) On a related matter - we often debate whether we are sharing too much information on BM. I believe transparency is important, and the information should be available to those who want it. Others consider that a simple account balance and return figure is enough (similar to RS) - but because we show all the detail, clients may feel compelled to trawl through it. I suspect most of the P2P Forum members are at the more active end of the investment community though, and prefer to see as much as possible. Any thoughts? My Net return is just over 7% overall, including >1% accrued interest. However, that is dwarfed by the 17% which are marked suspect, and therefore unavailable for withdrawal/liquidation, meaning I can theoretically access less than 90% of my original investment. I (currently!) accept that hopefully most will return to health, but it would only take a minority to fail to wipe out most/all previous gains, and my concern is that these proportions continue to increase. As far as the information published is concerned, it only makes the box slightly less black - little info on actual borrowers or platforms, and no control over where funds go. If each fragment wasn't separately listed there would need to be a summary of receivable status, which would probably be more worrying to most! IMO you can't compare with RS, because their model means that whatever happens returns are averaged across the board; normally getting what you expect at the outset, but in the worst case (should it happen) sharing the pain. In the meantime, funds can be accessed with a predefined penalty, not dependant on individual performance. This is not meant as criticism, just a critical assessment of the situation - HtH
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Post by stevefindlay on May 24, 2018 22:06:28 GMT
I'd be interested to know what your net return has been over the last 12 months? (If you are happy to share it) On a related matter - we often debate whether we are sharing too much information on BM. I believe transparency is important, and the information should be available to those who want it. Others consider that a simple account balance and return figure is enough (similar to RS) - but because we show all the detail, clients may feel compelled to trawl through it. I suspect most of the P2P Forum members are at the more active end of the investment community though, and prefer to see as much as possible. Any thoughts? My Net return is just over 7% overall, including >1% accrued interest. However, that is dwarfed by the 17% which are marked suspect, and therefore unavailable for withdrawal/liquidation, meaning I can theoretically access less than 90% of my original investment. I (currently!) accept that hopefully most will return to health, but it would only take a minority to fail to wipe out most/all previous gains, and my concern is that these proportions continue to increase. As far as the information published is concerned, it only makes the box slightly less black - little info on actual borrowers or platforms, and no control over where funds go. If each fragment wasn't separately listed there would need to be a summary of receivable status, which would probably be more worrying to most! IMO you can't compare with RS, because their model means that whatever happens returns are averaged across the board; normally getting what you expect at the outset, but in the worst case (should it happen) sharing the pain. In the meantime, funds can be accessed with a predefined penalty, not dependant on individual performance. This is not meant as criticism, just a critical assessment of the situation - HtH I'm not sure I reach the same conclusion on RS. Their site is very carefully worded: yes, there is a provision fund (which was topped up with £80M of equity last year, almost the same as the total interest they had paid out to clients as at that time). However, in the event of the provision fund not continuing to be propped up (it has already proven to not be sufficient), each lender is directly exposed to his / her loans - not the general portfolio, as RS removed the mutualisation structure last year. In short, if the PF fails, and your single borrower fails (which you have no visibility on and can't choose), then you can lose your entire investment. Regardless of what happens to everyone else. One of the reasons we don't use RS.
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Greenwood2
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Post by Greenwood2 on May 25, 2018 6:41:00 GMT
That's not what Section 9 of the Ratesetter Investor terms says:
9. Stabilisation Period
9.1. If at any time, in the opinion of RateSetter, the Provision Fund does not have sufficient funds to cover current or expected borrower defaults (a "Negative Position"), and RateSetter reasonably believes the Negative Position is not capable of being rectified through the ordinary course of business, RateSetter may put the Exchange into a “Stabilisation Period”. If the Exchange enters a Stabilisation Period, RateSetter will continue to treat all RateSetter Customers fairly and act in their best interests, seeking to minimise the loss to lenders at all times and to exit the Stabilisation Period as soon as possible.
9.2. During a Stabilisation Period, the Lender Rate and/or capital repayments lenders are entitled to may be reduced in accordance with terms 9.4 and 9.5 below (an “Interest Reduction” or a “Capital Reduction” respectively). The amount of any reduction will apply equally to all RateSetter Customers entitled to protection from the Provision Fund (the “Eligible Lenders”) and will be paid in full into the Provision Fund.
9.3. The amount of any Interest Reduction or Capital Reduction will be reflected in your RateSetter Account when the deduction is made but will only be paid into the Provision Fund when the relevant payment is made by the borrower. For example, if your funds are invested in the 1 year market, any reduction made would be reflected in your RateSetter Account immediately but would only be available to be paid into the Provision Fund at the end of the loan term when the borrower repays in full.
9.4. An Interest Reduction will be applied if RateSetter reasonably believes the Provision Fund Coverage Ratio is or will imminently be below 100%. An Interest Reduction will result in a reduction to the Lender Rate you are entitled to receive during the relevant period. For example, if you have invested £1,000 at a Lender Rate of 5%, during normal operation approximately 14p of interest would accrue daily ((£1,000 x 0.05) / 365). If there is an Interest Reduction of 50% for 10 days, the Lender Rate for those 10 days would reduce to 2.5% and interest would accrue at 7p per day. When the borrower pays that interest (which could be during or after the Stabilisation Period), 70p will automatically be deducted from the payment due to you (10 x 7p) and paid into the Provision Fund.
9.5. A Capital Reduction will be applied if RateSetter reasonably believes the Capital Coverage Ratio is or will imminently be below 100%. If there is a Capital Reduction, you agree to assign your right to the amount of the Capital Reduction to the Provision Fund. For example, if you have £1,000 matched on the Exchange and there is a Capital Reduction of 1%, you agree to assign the right to £10 of capital to the Provision Fund. You will then no longer have any right to that amount of capital or any interest accruing on that capital. When the borrower next makes a payment of capital (whether or not that is during the Stabilisation Period), £10 of the payment will be automatically deducted and paid into the Provision Fund.
9.6. We will notify you, along with all other Eligible Lenders if the Exchange enters into or ceases to be in a Stabilisation Period and/or if an Interest Reduction or Capital Reduction is applied, increased or reduced. All notifications will be made by email to the address on your RateSetter Account and will be posted publicly on our website. Any Interest Reduction and/or Capital Reduction will apply equally to all loans outstanding and matched to the Eligible Lenders at the date of the notification.
Last updated 03.04.18
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pikestaff
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Post by pikestaff on May 25, 2018 7:33:42 GMT
I'm not sure I reach the same conclusion on RS. Their site is very carefully worded: yes, there is a provision fund (which was topped up with £80M of equity last year, almost the same as the total interest they had paid out to clients as at that time). However, in the event of the provision fund not continuing to be propped up (it has already proven to not be sufficient), each lender is directly exposed to his / her loans - not the general portfolio, as RS removed the mutualisation structure last year.In short, if the PF fails, and your single borrower fails (which you have no visibility on and can't choose), then you can lose your entire investment. Regardless of what happens to everyone else... I had missed that. Thank you.
Greenwood2 - The Stabilisation Period has the effect of sharing the pain for as long as it is in effect, but it falls short of full mutualisation because (1) lenders are still exposed to their specific loans; and (2) it only applies once have RS put their platform into a Stabilisation Period. It's not clear what happens if RS are no longer around to do that, or (perhaps more likely) if RS goes out of business after having set Interest Reduction and Capital Reduction at a level that proves to be insufficient. One would hope the power (and duty) to make necessary changes passes to whoever operates their "living will" but it doesn't say that anywhere.
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