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Post by p2plender on Sept 7, 2014 7:26:18 GMT
Does it earn interest? Big wedge of money just sat there if not.
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Post by westonkevRS on Sept 7, 2014 11:22:27 GMT
It does earn interest, which gets 're-invested back into the fund.
Kevin.
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Post by johnny on Sept 7, 2014 12:40:22 GMT
It does earn interest, which gets 're-invested back into the fund. Kevin. I have noticed that the coverage ratio has slipped a little, I am sure it was 2.3. I would prefer to see the ratio increasing, helps me sleep better.
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c88dnf
Member of DD Central
Posts: 364
Likes: 266
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Post by c88dnf on Sept 7, 2014 17:13:26 GMT
I have noticed that the coverage ratio has slipped a little, I am sure it was 2.3. I would prefer to see the ratio increasing, helps me sleep better. The coverage ratio has gone up quite a bit over the past 2 years. At one point it was 1.7 times expectation. If you really want to worry, consider that Zopa's coverage ratio is just 1.1....
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Post by p2plender on Sept 7, 2014 17:40:43 GMT
where's it invested Kev and is it split 85k per institution to be on the safe side? ;-)
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Post by uncletone on Sept 7, 2014 19:01:43 GMT
Only very slightly insulting
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Post by GSV3MIaC on Sept 7, 2014 20:40:00 GMT
Could be worse, we could have asked if it was invested in ZOPA or Ratesetter. 8>.
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Post by westonkevRS on Sept 8, 2014 17:06:40 GMT
On a personal level, I'm a bigger lender with Zopa than RateSetter. Historical issue really, i.e. been with Zopa since the early days. But now clever diversification away from own place of work, or lazy can't be bothered to chase better product returns..... Discuss.....
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spiral
Member of DD Central
Posts: 909
Likes: 456
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Post by spiral on Sept 9, 2014 10:30:01 GMT
clever diversification away from own place of work, or lazy can't be bothered to chase better product returns Or don't want your colleagues to know of the ££millions££ you've got stashed away
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Post by Deleted on Sept 9, 2014 16:20:56 GMT
I have noticed that the coverage ratio has slipped a little, I am sure it was 2.3. I would prefer to see the ratio increasing, helps me sleep better. The coverage ratio has gone up quite a bit over the past 2 years. At one point it was 1.7 times expectation. If you really want to worry, consider that Zopa's coverage ratio is just 1.1.... Our coverage ratio is explained via the following link in case anyone is interested to know why Zopa targets a lower ratio of ideally 110% talk.zopa.com/topic/9237-safeguard-fund/
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Post by johnny on Sept 10, 2014 19:09:52 GMT
The coverage ratio has gone up quite a bit over the past 2 years. At one point it was 1.7 times expectation. If you really want to worry, consider that Zopa's coverage ratio is just 1.1.... Our coverage ratio is explained via the following link in case anyone is interested to know why Zopa targets a lower ratio of ideally 110% talk.zopa.com/topic/9237-safeguard-fund/ Thanks for the information, I still believe the bigger the shock absorber, the safer I feel.
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Post by westonkevRS on Oct 31, 2014 18:20:01 GMT
Boom, just got bigger:
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Post by GSV3MIaC on Nov 1, 2014 15:33:58 GMT
To match the average RateSetter web page, which also just got bigger?? 8>.
Sorry, couldn't resist. I really must try to login again soon and see if it has shrunk any (the web page, not the provision fund).
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webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Nov 1, 2014 16:15:58 GMT
Thanks for the information, I still believe the bigger the shock absorber, the safer I feel. IMHO the quality of the debt is more important than the size of the PF. If the only debtor is the government you don't need a PF. If the debtors are mostly bad risk then no PF can ever be high enough. That's why Payday lenders charge so much 'interest' - most of the charge is not actually interest but an allowance for bad debt. (Of course they don't have a PF as such, but they have make an allowance for defaults in their model)
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Post by johnny on Nov 2, 2014 12:20:25 GMT
Thanks for the information, I still believe the bigger the shock absorber, the safer I feel. IMHO the quality of the debt is more important than the size of the PF. If the only debtor is the government you don't need a PF. If the debtors are mostly bad risk then no PF can ever be high enough. That's why Payday lenders charge so much 'interest' - most of the charge is not actually interest but an allowance for bad debt. (Of course they don't have a PF as such, but they have make an allowance for defaults in their model) Yes there is validity in your opinion in regards to the quality of the debt. However when the economy turns and it will, even some safer debts will be affected and that's where the provision fund ratio comes into play. I have little interest in headline figures only the ratio of provision. If the Banks are being forced to set aside a greater proportion (higher ratio) against bad debt then obviously I would like to see Ratesetter do the same. If I have read the BOE proposals correctly Banks would have to carry 4.95% of every £ lent in reserve by 2019. I am comfortable at present with the ratio but would like to see it increasing.
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