Best exit strategy

Done a few quick sums, and the defaulted/ "suspended" / "non performing" / "claims underway" total has now grown to just over 38% of the total loan book. Lendy need to stop spending time and money pissing about in little boats and sort this mess out, frankly they seem to be out of their depth and up the creek without a paddle (trying to speak in terms that they might understand). My Lendy holding is a fraction of what it was, I now hold only loans with no sales queue and as soon as a small queue appears it gets listed for sale right away. I won't be returning after abandoning ship!

Well, if patience is not an option then it seems that SS may well be considering variable pricing on the SM. I suspect though that many posters here will cry out that variable pricing is "unfair" or some equal nonsense. However, a market is the only way you can make something illiquid into something liquid and variable pricing is the only way you can compensate for varying risks over the lifetime of the liquid loan. The idea the global bond markets could operate at fixed prices would be seen as utterly bonkers yet posters here seem to think P2P is somehow special and you can operate markets without variable pricing.

Given time, a variable priced SM will allow a clearing level to be achieved (possibly at very hefty discounts) and move the risk from weaker hands who want/need to exit to stronger hands who are happy to wait. Of course the strong hands may find that they need Kevlar gloves to catch the falling knife! But without that sort of risk where would the fun be?

For the overdue loans, however, Lendy's "fee" is merely the accrued interest - they would need to make a full recovery in order to see a penny of that "fee" for being listed on the SM.

So, in some way, the people who are leaving their loan parts on the SM for weeks and months at a time are doing the rest of us a favour, as every day that a loan part stays listed on the SM, it works towards aligning Lendy's interests with those of us continuing to hold loan parts and accrue interest.


As I've said before, I suspect that the SM queues would move a bit faster if Lendy were to convert part of the amount forfeit by the sellers into a "cashback" incentive for the buyers... but they don't seem to consider clearing the SM a priority right now.

It will be interesting to see what sort of premiums sellers want to offer in order to get out.
For some loans I think it'll be pretty big.

Across the P2P platforms, it seems obvious as to why there are delays, the platform would love to believe in the story that the borrowers tell them; it makes life easier for everyone. That is why they get the chances to prove that it is true, at lenders expense of course. Delay stuff long enough and even getting the capital back is seen as some kind of great result.

I am into high 4 figures of this loan and although I cannot add to the 2nd charge, as I refused Lendy's new terms, I would still not have added further if I could, without a substantial % increase and cashback.  


The reason?: 0005; whereby I put more in there to see it over the line and then Lendy pulled a fast one with regard to that £1m. It could so easily happen again.

Once again the whiners get from under their rocks, best thing I read in the recent posts was how to stop a whiner from appearing in my reader list. As usual a number of so called investors have no idea what they let themselves in for when they signed up with a P2P platform. Exit strategy is a phrase which only applies to an individuals thought process, as I have said in the past....sign up for the Pussy Platform and you really have things to whine about, they would just love Iain to add to their list of banned investors.

I wonder if Lendy have considered how a variable market would affect DFLs. (Will new tranches fill if there is a chance that a variable market would throw up some more tempting offers.)

An option would be to have only PBLs and DFLs that are at max LTV trade-able on a variable market.