Why are so many loans up for sale at -1% ?

On a lot p2p the investments  are 1-3 years before any return is paid as with other investments. The nature of the property markets mean a delay as anyone buying or selling will attest . On time is early: late is normal. Default is unusual : Loss is unacceptable. As I said historically 79 of  2275 loans defaulted some of these were tranches so actual borrowers are lower. Late loans don’t really matter if you plan for each loan to take 12 months most will have paid. 70% of Lendy I have are late. I’ve over half a million in various p2p including mid twenty thousands in Collateral p2p is a mid to long term vector unless you have less than £10000 then it can be a very fluid low risk investment if you put the time in. As to -1% usually there are only a couple if any most months. I would guess summer holidays require investors to try and top up bank accounts. The same thing happens at festive season or just after when card bills land on doormats. As to stock markets l’ve over Quarter of a million giving fair return but it is taxable reducing earnings substantially. Unless you invest in funds and invest a lot for the small investor not having larger sums at one time dealing fees account for a high percentage of each investment. In January most of stock market fell up to 15% most have recovered. You could loose 100% Asset backed p2p unless fraudulent that level of loss is impossible. Most people don’t have the time to research shares and rely on people who take their cut to manage things. Always good to diversify a portfolio to include many different investment vectors.

Because this is a strategy for FS property loans I adopted over a year ago and it worked well for me so far.  The rationale is lower return for lower risk.  Last "feast" period (iirc just before the end of tax year) I had only one not sold (collection of buildings in NI), but luckily it got renewed, so I didn't loose anything on FS property loans yet since I've started putting all of them for sale. I keep my discounts as low as they have to be in order sell. I don't know what to expect from the current "feast", time will show...  

exactly - I accept risk but I don't expect the dreadful DD and total lack of financial acumen shown my FS. If this lot worked for one of the major city players they would be sacked. Just look at the results and there is worse to come - how on earth can anybody lose 100% in the propert market e.g Wimbledon and give £530K to a developer with a curious track record for a small building plot which did not even attract one bid at auction. There are 2 x £300K investments in the cinema which I keep banging on about. I don't know what is exactly happening here (neither do FS in my opinion) but I know enough to be very concerned.
If this one goes the way of Whitehaven (and I think it will) then a 50% loss is going to need one almighty FS investment that performs very well in order for these BH to see anything like a positive return....why are people selling loans - maybe like me they think they are rubbish!

good luck to those of you who persevere with FS but junk bond trading is not for me,

Logically that would be equal to or greater than the current discount available.

In your case then the answer to your original question with this additional outrider is -1%

 Surely just set a rate comparable with the lowest existing rates, not necessarily equal or higher unless you are desperate to sell. Otherwise it’s a race to the bottom - fire sale - confidence collapse - market panic etc.  If I doesn’t sell in a few days increase discount further.

in a proper functioning free market, everything has its price.

if you buy at 12% interest and could sell after 4 months at -4% (ie 1/3 of a year), this would, I think, be at the break-even point.