ashe
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Post by ashe on Sept 6, 2018 7:28:53 GMT
I was curious about the current funding for Safeguard, and found this link: www.zopa.com/lending/safeguard0.81x current coverage and 1.01x with future expected income (so seems to me that if the current coverage isn't quite enough, the future income won't be either?) Also - last updated 17 January?! What is it now I wonder? |
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aju
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Post by aju on Sept 6, 2018 7:46:15 GMT
I've been wondering that for a while myself as it runs down isn't there an issue with the ongoing coverage of SG. I think I read somewhere that the monthly payments of SG protected loans have some cover for SG protection as well as upfront costs. If they don;t then this would make this an overblown ponsi scheme, aren't they illegal.
Thing is that item was updated in Jan just after the SG closed it would, as you say be more useful to see a monthly update on that, whilst Zopa is doing a lot of things its not actually reporting on how much is paid out so far and how much is left in the scheme. One thing I know is that if it were not there my reported default loss would be considerably higher than it is.
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dorset
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Post by dorset on Sept 6, 2018 8:50:51 GMT
Interesting point. I am running out my Safeguard as loans pays back and now down to only £7k.
As the SG loan book runs out the hit to Zopa of a SG failure gets less by the month. Given the damage to Zopa's reputation and IPO plans etc I suspect that in an event they would chip in (I hope).
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ashe
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Post by ashe on Sept 6, 2018 13:28:04 GMT
The really questionable part to me is that a coverage of 1.01% eight months ago is so borderline, might it have dipped under that and Zopa decided to stop updating and hide that fact? I'm sure if it rose instead, they'd want to update it.
I would agree it is fairly likely that they would cover it, to save reputation, but maybe they want to hide that until they have to?
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