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Post by mrclondon on Oct 3, 2018 12:43:11 GMT
This situation is going south quite quickly now - with more than £30M going to be added to the NP loans section in the next couple of weeks by the looks of it. Gulp ! That's c. 25% of the currently live loans list 
DFL004 £14.3m -172 days DFL012 £10.8m -163 days DFL017 £7.45m -161 days
then
DFL015 £1.2m -143 days PBL177/8/9 £2.7m -140 days
Currently: Live £128m NP £47m Claims £6m
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Post by cashmax on Oct 3, 2018 13:10:37 GMT
This situation is going south quite quickly now - with more than £30M going to be added to the NP loans section in the next couple of weeks by the looks of it. Gulp ! That's c. 25% of the currently live loans list
DFL004 £14.3m -172 days DFL012 £10.8m -163 days DFL017 £7.45m -161 days
then
DFL015 £1.2m -143 days PBL177/8/9 £2.7m -140 days
Currently: Live £128m NP £47m Claims £6m
Yes - So in under 2 weeks time Live £95M NP £80M Claims £6M It's not much a stretch to see the defaulted loans exceeding the live loan book at some time in the very near future.
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Post by p2plender on Oct 9, 2018 7:06:30 GMT
If that is possible...
£31 million worth of loans are going to default in the next 14 days. Well they were in default best part of 6 months ago but in the 'make it up as you go along' world of Lendy, these loans have been classed as fine n dandy for the last 6 months. Not worked out the figures now regarding portion of book in default, but this is some state Lendy have gotten investors in. A quite astonishing state of affairs.
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hazellend
Member of DD Central
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Post by hazellend on Oct 9, 2018 7:23:34 GMT
Was it really necessary to start another new thread ?
Mods please merge this with the trust pilot thread or something similar o
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Post by p2plender on Oct 9, 2018 10:30:58 GMT
It's much easier for those coming from TP to note such headlines.
Also 31 million pounds defaulting is pretty hefty stuff even by the disastrous Lendy standards!
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Post by mrclondon on Oct 9, 2018 11:15:11 GMT
Was it really necessary to start another new thread ? Mods please merge this with the trust pilot thread or something similar o I've actually done the opposite, and merged a couple of posts from last week on a thread that was primarily discusing a bulk sale of the distressed loan book into this thread to provide additional context. Personally I feel a focus on a loanbook that is approaching 50% default, £86 million by value (by Lendy's own 6 months overdue definition) is important, and deserves a thread of its own.
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invester
P2P Blogger
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Post by invester on Oct 9, 2018 11:17:12 GMT
Lendy could simply change the rules, create new categories for loans to make it look better. It doesn't really affect anything now, it's just window dressing.
I think it is symptomatic of their decline though - these three loans make up almost one quarter of the 'good' loan book. And a further portion of the good loan book isn't that great either.
Things going wrong is part and parcel of P2P, unfortunately there doesn't seem to be enough business written by Lendy to balance this out. There are some absolute shockers on FC which make Lendy look great, but at least they have volume on their side.
The way for redemption for them is not mere recovery of the existing bad cases, but to put forward some investments that benefit lenders and themselves. I don't see why there hasn't been more activity in this regard, or if they see themselves as too big to chase smaller lower-risk loans, or if they are just uncompetitive in this market. The rates being put out by others in this case suggest to the latter.
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Post by p2plender on Oct 9, 2018 11:28:17 GMT
Lendy could simply change the rules, create new categories for loans to make it look better. It doesn't really affect anything now, it's just window dressing. I think it is symptomatic of their decline though - these three loans make up almost one quarter of the 'good' loan book. And a further portion of the good loan book isn't that great either. Things going wrong is part and parcel of P2P, unfortunately there doesn't seem to be enough business written by Lendy to balance this out. There are some absolute shockers on FC which make Lendy look great, but at least they have volume on their side. The way for redemption for them is not mere recovery of the existing bad cases, but to put forward some investments that benefit lenders and themselves. I don't see why there hasn't been more activity in this regard, or if they see themselves as too big to chase smaller lower-risk loans, or if they are just uncompetitive in this market. The rates being put out by others in this case suggest to the latter. Well I feel it is due its own thread for this very reason. Of course I could have started this thread nearly 6 months ago when they (in the real world) defaulted. And yes, Lendy can keep 'window dressing' and 'shuffling' loans around into silly little categories. So yes let's discuss, almost one quarter of the loan book about to go 180 days overdue.
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Post by mrclondon on Oct 9, 2018 12:08:50 GMT
Will discussing it get us anywhere? Probably not, at least until Lendy admit to us the scale of the hole they have dug themselves into.
To put things into context, it would not be that surprising if the haircuts needed to resolve all the loans that are currently more than 160 days overdue in total exceeded the whole of the COL loan book which has caused such anguish this year.
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sl75
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Post by sl75 on Oct 9, 2018 12:12:40 GMT
Some further context is that during the last 6 months there has been a complete dearth of new loans on the platform.
I only count 2 - DFL037 and PBL200. PBL201 is only really a second part of PBL199 which was from more than 6 months ago, and everything else has just been new tranches of existing DFLs.
This compares with other platforms which are aggressively expanding their loan book so that the live loan book mostly consists of loans written in the last 6 months, where the borrowers have not had an opportunity to default yet, so the final status is much more uncertain.
In any case, the live loan book is the wrong thing to compare with the defaults (much as new or rapidly-expanding platforms try to focus on it) - if a platform were to stop writing new loans completely (and Lendy are almost down to that level of new loans already!), then after the term of the existing loans expires everything left that was not repaid would be in default... my own Zopa portfolio is in this state, for example - the remaining "live" loans have just dropped below £5 in total, and almost all the income is based on recoveries from loans that defaulted 5 years or more ago).
Instead we need to compare the loans that ended in loss (or an appropriate proportion of defaults with a partial or total loss anticipated, as I don't think Lendy have yet formally acknowledged any actual loss) with those that ended in repayment and/or full recovery.
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wuzimu
Member of DD Central
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Post by wuzimu on Oct 9, 2018 12:26:15 GMT
If there's no point discussing issues like LY's mushrooming defaults, what's the point of this platform?
But I think there is a point. This site provides a valuable ray of scrutiny of the goings on of all P2P platforms and ever-so-slightly addresses the power imbalance between disparate lenders and the P2P platforms management.
In terms of LY, I conclude this has gone FUBAR some time ago.
I think the best outcome would be for the shareholder to sell the business to some bigger financial institution who wants to get into P2P.
Best outcome for shareholder and all us lenders. If not monster will stagger on for a few months yet and the final death scene will be a one liner from the Paul's, if they can be ar**ed, with resulting losses much bigger than they need to be.
So my message to LY management - 'you have failed to create a sustainable platform... its time to think out of the box and find exit routes that minimize damage to lenders and your reputations'. Have you got the minerals?
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Post by charliebrown on Oct 9, 2018 12:27:27 GMT
No investor has lost a penny  if we really call a default a default >0 days, then the numbers are even worse and more shocking. I’ve got a sizeable 6 figure sum invested in Lendy and I’m now receiving very little interest. Majority of my holdings are IA or default. I just don’t see where things go from here. The default process that Lendy follows seems to take an eternity. Something more drastic and dynamic needs to be done. |
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wuzimu
Member of DD Central
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Post by wuzimu on Oct 9, 2018 12:58:30 GMT
If there's no point discussing issues like LY's mushrooming defaults, what's the point of this platform? Good point. The forum was used to share DD in the good days. I don't think it's doing anyone any favours now. P2P risk comes in many forms, there's loan risk, for which forumites discussed DD in the 'good days'
then there's platform risk which is surfacing in these days of reckoning.
IMO equally valid to discuss both, thinking about either can improve decisions and protect capital
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Post by loftankerman on Oct 9, 2018 15:46:59 GMT
I remarked a long time ago that a real risk of P2P is that idiots may lend your money to crooks. It disappeared, presumably moderated. It remains true nonetheless.
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orvilorvil
Member of DD Central
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Post by orvilorvil on Oct 9, 2018 16:22:12 GMT
Good point. The forum was used to share DD in the good days. I don't think it's doing anyone any favours now. P2P risk comes in many forms, there's loan risk, for which forumites discussed DD in the 'good days'
then there's platform risk which is surfacing in these days of reckoning.
IMO equally valid to discuss both, thinking about either can improve decisions and protect capital
This forum helped me see the writing on the wall many months ago in respect of Lendy, I owe it a few quid!!
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