Mike
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Post by Mike on Aug 6, 2018 13:39:47 GMT
Also, once a loan defaults it cannot be sold and experience suggests it often takes much longer than 365 days to resolve so how are they going to give people their money back after 365 days? Launch another version at 11%?
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zlb
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Post by zlb on Aug 6, 2018 13:57:45 GMT
Aren't they just trying to get this subscribed to before any FCA legislation stating reward has to match with risk, after which they couldn't offer this? Well not 6% anyway. And is it black box, or is it fractional reserve?
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empirica
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Post by empirica on Aug 6, 2018 14:12:13 GMT
Aren't they just trying to get this subscribed to before any FCA legislation stating reward has to match with risk, after which they couldn't offer this? Well not 6% anyway. And is it black box, or is it fractional reserve? As highlighted elsewhere: "CAN I SEE THE PROPERTIES I AM INVESTED IN? No, we don’t publish the loans the Lendy Wealth accounts have invested in, as this may prejudice our standard self-select borrowers." So it is black box in that respect, but can you elaborate on the 'fractional reserve' aspect please as I don't understand.
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zlb
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Post by zlb on Aug 6, 2018 14:25:09 GMT
Aren't they just trying to get this subscribed to before any FCA legislation stating reward has to match with risk, after which they couldn't offer this? Well not 6% anyway. And is it black box, or is it fractional reserve? As highlighted elsewhere: "CAN I SEE THE PROPERTIES I AM INVESTED IN? No, we don’t publish the loans the Lendy Wealth accounts have invested in, as this may prejudice our standard self-select borrowers." So it is black box in that respect, but can you elaborate on the 'fractional reserve' aspect please as I don't understand. I learned what that meant by looking it up after seeing term used here. You'd find a good and simple explanation online, better than I could give. It's where a bank has a reserve of money which is a fraction of what people have deposited there. It allows some people to withdraw their money (when, in reality it's stuck in investments), but not all people to withdraw. Hence my learning this term on the AC thread for the QAA and 30DAA. It's how banks operate, as far as I understand.
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empirica
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Post by empirica on Aug 6, 2018 14:30:07 GMT
As highlighted elsewhere: "CAN I SEE THE PROPERTIES I AM INVESTED IN? No, we don’t publish the loans the Lendy Wealth accounts have invested in, as this may prejudice our standard self-select borrowers." So it is black box in that respect, but can you elaborate on the 'fractional reserve' aspect please as I don't understand. I learned what that meant by looking it up after seeing term used here. You'd find a good and simple explanation online, better than I could give. It's where a bank has a reserve of money which is a fraction of what people have deposited there. It allows some people to withdraw their money (when, in reality it's stuck in investments), but not all people to withdraw. Hence my learning this term on the AC thread for the QAA and 30DAA. It's how banks operate, as far as I understand. My apologies, I understand the concept of FR just not how it pertained to your question which suggested the Wealth product(s) could be either 'black box' or 'fractional reserve'?
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lara
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Post by lara on Aug 6, 2018 14:57:47 GMT
Sorry to jump in here with an unrelated question but I have just started investing with AC. When you mention the illiquidity of their automated accounts, are you talking about the 30DAA and the QAA? No. I meant to say the automated non-access accounts. Although the QAA & 30DAA are more dangerous than they appear should a northern rock situation occur. Thanks for clarifying.
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zlb
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Post by zlb on Aug 6, 2018 22:39:05 GMT
I learned what that meant by looking it up after seeing term used here. You'd find a good and simple explanation online, better than I could give. It's where a bank has a reserve of money which is a fraction of what people have deposited there. It allows some people to withdraw their money (when, in reality it's stuck in investments), but not all people to withdraw. Hence my learning this term on the AC thread for the QAA and 30DAA. It's how banks operate, as far as I understand. My apologies, I understand the concept of FR just not how it pertained to your question which suggested the Wealth product(s) could be either 'black box' or 'fractional reserve'? it wasn't clear to me what form L are offering. An unreliable 6% in the context of the questionable risk-reward relationship on Ly, sounds more like a quick access rate rather than 60 day,
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tx
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Post by tx on Aug 8, 2018 1:03:10 GMT
It feels like Ly is winding down its operation, ... and focus on changing Ly Wth entirely.
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empirica
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Post by empirica on Aug 8, 2018 9:17:20 GMT
It feels like Ly is winding down its operation, ... and focus on changing Ly Wth entirely. They've announced plans to launch an IFISA, which seems more a retail-focused product than a Lendy Wealth one, to me at least.
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Post by p2plender on Aug 15, 2018 11:49:28 GMT
Just noticed it's now a 'tab' on the website, WEALTH. Sorry if it has been for a while, I tend not to log in to my account much these days due to lack of movement.
Pretty sure the new 'wealth' avenue lendy are exploring will fall flat on its face. You'd be better with a pin and a list of AIM stocks than trust the Cowes lot with 50 big ones. IMO of course. Even the crappest of AIM stocks can usually be sold for something unlike the junk loans Lendy have in default.
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invester
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Post by invester on Aug 15, 2018 12:01:24 GMT
I got an email with a PDF brochure.
Surely a case for the ASA - it seems incredible they can have testimonials for a new product, seems about as credible as the Trustpilot reviews.
If you had £50k and are time-poor it would be almost certainly better to stick it across as selection of Vanguard funds, quicker access and upside potential. If the economy gets buggered your investments may be impaired but at least you can then access the money.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 15, 2018 12:11:52 GMT
I got an email with a PDF brochure. Surely a case for the ASA - it seems incredible they can have testimonials for a new product, seems about as credible as the Trustpilot reviews. I believe the purple place has already been proactive on that one.
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Post by scerbera on Aug 15, 2018 12:14:53 GMT
Just noticed it's now a 'tab' on the website, WEALTH. Sorry if it has been for a while, I tend not to log in to my account much these days due to lack of movement. Pretty sure the new 'wealth' avenue lendy are exploring will fall flat on its face. You'd be better with a pin and a list of AIM stocks than trust the Cowes lot with 50 big ones. IMO of course. Even the crappest of AIM stocks can usually be sold for something unlike the junk loans Lendy have in default. lol, funny you should say that, check out VAST on aim, huge huge upside, very undervalued. I have a considerable amount of my ex lendy cash there.
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xpubman1
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Post by xpubman1 on Aug 15, 2018 12:17:01 GMT
I'm privileged. Lendy have just sent me an invitation to join 'Lendy Wealth': 'As you would have read, Lendy are launching two new products under the new brand of Lendy Wealth at Lendy Cowes Week this month. Initial interest has so far proved very strong.
These new accounts are designed for sophisticated investors, who are typically asset rich but time poor, and provide a market-leading interest rate through investment in a diversified portfolio of secured property loans managed by a dedicated account manager.'They clearly have a sense of humour. I also got an invitation, and I laughed all the way to the bathroom.
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withnell
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Post by withnell on Aug 15, 2018 12:37:40 GMT
I get this isn't the right product for a lot of people, but I don't get why there is such a negative backlash - Assetz have been running similar accounts for a while to popular acclaim, and investors in their 30day notice product can see the multiple loans that their funds are spread over.
While I'm not happy with the relaxed attitude Lendy are taking towards overdue loans, over the last couple of years I have made a decent return which does leave cover for a certain level of default, so it's not an unreasonable rate considering there is no cash drag and no admin work for the investor
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