pikestaff
Member of DD Central
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Post by pikestaff on Sept 28, 2014 17:30:11 GMT
batchoy Personally I don't think active v passive makes a difference. A passive lender is just delegating more to their agent than an active one. The provision fund does blur the issue somewhat, but even with a provision fund it's reasonably clear on both RS and Zopa that we, and not the platform, are the lenders.
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Post by batchoy on Sept 28, 2014 18:11:36 GMT
batchoy Personally I don't think active v passive makes a difference. A passive lender is just delegating more to their agent than an active one. The provision fund does blur the issue somewhat, but even with a provision fund it's reasonably clear on both RS and Zopa that we, and not the platform, are the lenders. Maybe active/passive were the the wrong terms, what I was getting at is the packaged nature of the RS and Zopa offerings. RS particularly blur the issue as they cannot make up their minds as to whether we are lenders or savers and market their products as bonds.
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Post by gadget on Sept 28, 2014 18:32:04 GMT
batchoy Personally I don't think active v passive makes a difference. A passive lender is just delegating more to their agent than an active one. The provision fund does blur the issue somewhat, but even with a provision fund it's reasonably clear on both RS and Zopa that we, and not the platform, are the lenders. Got to disagree. If you've no control (or even visibility) on the lending ie the platform is decides entirely where your money goes, and you are not meant to be exposed to losses (provision funds etc) then is the platform really that alternative / p2p? I struggle to see how Ratesetter / Zopa are that much different to a money-market fund now.
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pikestaff
Member of DD Central
Posts: 2,189
Likes: 1,546
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Post by pikestaff on Sept 29, 2014 6:58:03 GMT
...I struggle to see how Ratesetter / Zopa are that much different to a money-market fund now. I agree with that. And who owns the assets of a money market fund? The investors (albeit indirectly). The fund manager manages the fund for the investors.
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webwiz
Posts: 1,133
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Post by webwiz on Sept 29, 2014 7:15:42 GMT
Unfortunately, I suspect that we will have to wait until a platform collapses to see what the Courts make of it. Even then the Court's findings may not apply to other platforms. However it may be that clarity, and possibly legislation, may come from the idea to allow p2p investments to be held in ISAs. When Keydata (not a p2p) collapsed investors who had used ISAs were paid by the FSCS whilst the others were not.
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debeast
(o)(o)
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Post by debeast on Sept 29, 2014 7:55:23 GMT
I think the OP was a one day wonder .
Would have been nice to see a contribution back from them.
Ah well!
/beastie
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debeast
(o)(o)
Posts: 238
Likes: 44
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Post by debeast on Sept 29, 2014 7:56:48 GMT
Unfortunately, I suspect that we will have to wait until a platform collapses to see what the Courts make of it. Even then the Court's findings may not apply to other platforms. However it may be that clarity, and possibly legislation, may come from the idea to allow p2p investments to be held in ISAs. When Keydata (not a p2p) collapsed investors who had used ISAs were paid by the FSCS whilst the others were not. It'll be a mess whichever one it will be (if it happens!) . But will a P2P company ever be too big to fail?
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Post by loanstar on Oct 4, 2014 21:37:26 GMT
General answers to the questions.
With P2B I can decide who I lend to. Living and working in the West Midlands I know a number of the companies and people who work for them.
I can lend small amounts to any one company across all sectors. This spreads my risk. So it has taken over a year to deploy a five figure sum.
It beats rates for any deposit accounts.
And then we come to the interesting part. I enjoy reading and researching companies I know very little about. Its been along time since I watched so little TV.
And lastly banks and lending to to SMEs. Some years ago I approached a high street bank for a loan to run a day nursery. I was turned down. Another
person with more money set up in the building. The business is still running. A couple of years latter I started a retail business. I had help writing a business
plan etc. I was lent the money. I closed the business a couple of years latter because I could see the end in sight, not the bank.
You seem to like secured lending. I can understand that. But, as someone has already said, some of the security has no real value.
Lastly I can sell my loan parts at anytime. Research shows that default do not normally occur until months 5 and 6. So if I feel uncertain I exit early.
Yes the market may break down and I may be locked in, but that is no different to may other investments.
Overall only time will tell. I see P2P and P2B as the modern version of what were known in the passed as friendly societies.
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