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Post by df on Jun 28, 2018 18:48:16 GMT
Bad in principle, but in reality there isn't much point studying loan book when you have no control over your investments. Of course there is. If loans that have missed payments/defaulted start shooting up then it should be a big factor in whether you want to invest more/stay invested in the platform. My experience of an exceptional increase in processing/late loans this year coupled with defaults outstripping my interest receipts (on a large, diversified portfolio) got me worried. I was prepared to put this down to bad luck but the removal of the loan book detail means I now have no visibility on whats going on and no sensible explanation as to why they are hiding that data. I have drawn my own conclusions and so this week have sold out the remainder of what a few weeks ago was a £400k portfolio (save the £34k loans I am unable to sell). I suppose being able to view the entire FC loan book can help to make more informed decisions. I've never downloaded it and didn't look at FC stats after signing up. For me it's good enough to monitor my "annualised return" and "portfolio total" on summary page to see how bad things are (I also read horror stories in "recent loan comments" from time to time). Probably not a good strategy, but I don't wan't to spend too much time on FC since it turned automatic.
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Post by df on Jun 28, 2018 19:13:10 GMT
I suppose the good news is that significant investors like bg are responding to degradations in transparency (and, it seems, performance) in the best way possible - by removing their cash from the platform. As with Ratesetter's well publicised paltry rates, cutting off their supply is the only way we're going to see any enhancement. I just hope FC decide to respond with the carrot of improved rates as opposed to the stick of re-introducing a sellout fee. Or bring back the manual account even ....<sigh> I miss the manual account.  I'm sure many significant investors pulled out last September, yet my "available funds" tend to stay there uninvested for days. It takes only 100 new 4k investors to replace one 400k. It looks like FC and RS have no shortage of lenders, so I'm not too hopeful for response. I very much prefer manual too. I'm doing much better with LC and Rebs than with new auto-FC
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bg
Member of DD Central
Posts: 1,368 
Likes: 1,929
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Post by bg on Jun 29, 2018 7:41:36 GMT
Of course there is. If loans that have missed payments/defaulted start shooting up then it should be a big factor in whether you want to invest more/stay invested in the platform. My experience of an exceptional increase in processing/late loans this year coupled with defaults outstripping my interest receipts (on a large, diversified portfolio) got me worried. I was prepared to put this down to bad luck but the removal of the loan book detail means I now have no visibility on whats going on and no sensible explanation as to why they are hiding that data. I have drawn my own conclusions and so this week have sold out the remainder of what a few weeks ago was a £400k portfolio (save the £34k loans I am unable to sell). I suppose being able to view the entire FC loan book can help to make more informed decisions. I've never downloaded it and didn't look at FC stats after signing up. For me it's good enough to monitor my "annualised return" and "portfolio total" on summary page to see how bad things are (I also read horror stories in "recent loan comments" from time to time). Probably not a good strategy, but I don't wan't to spend too much time on FC since it turned automatic. I would just be a little bit wary as the stats on the summary page don't give you the true picture. What you also need to take into account are loans that are processing, late and downgraded....these are the loans that are going to become your future defaults (although maybe not for several months). If you goto the 'sell' page it will tell you how much of your loan book is available to sell. The difference between this number and your total loans are then the 'problem' unsellable loans. I saw this number creeping up alongside an increase in defaults and that's what lead me towards the exit door. The removal of the loan book is what fully pushed me through it.
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Post by df on Jun 29, 2018 21:17:55 GMT
I suppose being able to view the entire FC loan book can help to make more informed decisions. I've never downloaded it and didn't look at FC stats after signing up. For me it's good enough to monitor my "annualised return" and "portfolio total" on summary page to see how bad things are (I also read horror stories in "recent loan comments" from time to time). Probably not a good strategy, but I don't wan't to spend too much time on FC since it turned automatic. I would just be a little bit wary as the stats on the summary page don't give you the true picture. What you also need to take into account are loans that are processing, late and downgraded....these are the loans that are going to become your future defaults (although maybe not for several months). If you goto the 'sell' page it will tell you how much of your loan book is available to sell. The difference between this number and your total loans are then the 'problem' unsellable loans. I saw this number creeping up alongside an increase in defaults and that's what lead me towards the exit door. The removal of the loan book is what fully pushed me through it. Yes, I know. The stats tell me that I still make a reasonable return since I've started with FC, but my "portfolio total" is now going down every month. My plan on 18th September was to leave it (no new money - no withdrawals) for 12 months and review it then. This week my "annualised return jumped from 7.2 to 6.3%", first thing I did was withdrawing all available cash (3 loan-worth) sitting there for days. Not sure what to do next - I will probably sell 10% of my holding to reduce the amount allocated to future loans, which could the first step to my exodus? I went to 'sell' page, thank you for the tip, I can sell 90% of my holding. Small proportion of this 10% will probably come back, I get some recovery payments and some 'downgraded' occasionally get back on track, but if nothing comes back my historical "earnings" from FC will be below 0%.
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