number5
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Post by number5 on Nov 8, 2018 16:41:07 GMT
By new loans you want to invest in, I guess you mean in AC? I have FS as my main investment platform currently. How is the % return on AC and what is the liquidity on the SM? Can you sell at discount/premium? Yes, I keep AC money in AC, It was very long time ago when I made a withdrawal. At some point FS was my second platform, but recently I've reduced my FS investment. Far too many defaults and not many new loans. % return on AC depends on what accounts you are using. I would recommend to stay away from GBBA and PSA - I get better returns from 30-Day than GBAA/GEA due to defaults and poor diversification. 65% of my AC money is in MLA, 20% in GEA/GBBA. Overall I'm getting somewhere around 7% return. SM is good. So far I managed to sell everything I put for sale at par. You can sell at discount if you want it quick, but there is no premium. My current XIRR on FS is 9.2%, I have been with them just over a year. It was fantastic before for people who did not want to keep loan parts to term, similar to FC before they changed their model.
However I have recently had two loans and another heading that way (with significant amounts!), where I have not been able to sell my loan parts even at -1%, and that is something I am not comfortable with. So considering my options now
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Post by hammertime on Nov 8, 2018 17:17:36 GMT
I would not bother with F/C if i were you i was with them for a number of years and they were fine .Then they changed the way they wanted you to invest and it was awful .So i got out and i'm much happier with A/C. Why not try a mixture of QAA 30DAA and maybe the MLA i'm getting 11% in that and it does not take long to sell .Good luck. What i do is only invest in loans over 9.5% in the MLA. And then the interest i get on my 30DAA i put into the MLA. The old loans that i am winding down from F/C i sweep into the MLA. And i just keep a close eye on the loans if i see one with a higher interest rate i will sell some of my loans that are at a lower rate and invest in the higher rate.I hope that helps.
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number5
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Post by number5 on Nov 8, 2018 17:28:28 GMT
I would not bother with F/C if i were you i was with them for a number of years and they were fine .Then they changed the way they wanted you to invest and it was awful .So i got out and i'm much happier with A/C. Why not try a mixture of QAA 30DAA and maybe the MLA i'm getting 11% in that and it does not take long to sell .Good luck. What i do is only invest in loans over 9.5% in the MLA. And then the interest i get on my 30DAA i put into the MLA. The old loans that i am winding down from F/C i sweep into the MLA. And i just keep a close eye on the loans if i see one with a higher interest rate i will sell some of my loans that are at a lower rate and invest in the higher rate.I hope that helps. That does really help...thanks! But how often do loans of 9.5% come about....to me it looks like they are more around 6/7%. Also do you keep the loans for the whole term or sell tham on the SM? Easy to sell?
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Post by df on Nov 8, 2018 21:10:36 GMT
I've been doing it for over a year with 30-Day. Put withdrawal requests daily. If there are new loans to invest I use this money, if not I put it back to 30-Day. Any sales or repayments go back to 30-Day and I make sure that I always have a little amount in QAA in case there are few upcoming loans. It is the same as using QAA for waiting money, but with slightly better return.Not quite the same - there's a higher risk if the market turns that you won't be able to get your money out. Hence higher return. Also, using daily withdrawal requests of 1/30th, whenever the market does turn, you will have 29/30ths of your money stuck (for a period of between 1-30 days). If you roll it all every 30 days you'll have all of it stuck for a random number of days between 1 and 30, so a significant proportion of your money (around half on average, but could be more or less than that) will likely be more quickly accessible with the latter strategy. Not clear to me that either one is necessarily a preferable strategy, although it is clear which is more time consuming! (Could of course do also a hybrid rolling 1/4 every week) Agree that it does mean 1/30th of your funds are available for MLIA, but tbh if I am actively investing in MLIA then I prefer the QAA as gives more flexibility and can leave funds actively in MLIA queues whilst earning QAA interest on the sweep. Yes, fair point. It is a little bit higher risk, but if that happens suddenly we won't be able to withdraw from QAA either. Definitely more time consuming than just keeping it in QAA, but not a lot. This particular piece of maintenance (incl. login) takes less than a minute.
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Post by df on Nov 8, 2018 22:03:17 GMT
Yes, I keep AC money in AC, It was very long time ago when I made a withdrawal. At some point FS was my second platform, but recently I've reduced my FS investment. Far too many defaults and not many new loans. % return on AC depends on what accounts you are using. I would recommend to stay away from GBBA and PSA - I get better returns from 30-Day than GBAA/GEA due to defaults and poor diversification. 65% of my AC money is in MLA, 20% in GEA/GBBA. Overall I'm getting somewhere around 7% return. SM is good. So far I managed to sell everything I put for sale at par. You can sell at discount if you want it quick, but there is no premium. My current XIRR on FS is 9.2%, I have been with them just over a year. It was fantastic before for people who did not want to keep loan parts to term, similar to FC before they changed their model.
However I have recently had two loans and another heading that way (with significant amounts!), where I have not been able to sell my loan parts even at -1%, and that is something I am not comfortable with. So considering my options nowMy return from FS is lower - mainly due to being very uncareful at the start. My more recent strategy is giving better returns, but it includes selling loan parts at discount I'm afraid. Selling becomes more and more difficult, which makes me be more and more selective, hence reduction of my funds on FS. Yes, FC's SM was very "vibrant" prior to change... After giving it a lot of patience I've recently given up, sold everything I could and hoping for some returns from recoveries. As it stands today I've earned 3.6% in two years, much lower than "estimated return". I have far more better returns from LC and Rebs (both 9%+).
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elliotn
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Post by elliotn on Nov 9, 2018 1:54:54 GMT
What i do is only invest in loans over 9.5% in the MLA. And then the interest i get on my 30DAA i put into the MLA. The old loans that i am winding down from F/C i sweep into the MLA. And i just keep a close eye on the loans if i see one with a higher interest rate i will sell some of my loans that are at a lower rate and invest in the higher rate.I hope that helps. That does really help...thanks! But how often do loans of 9.5% come about....to me it looks like they are more around 6/7%. Also do you keep the loans for the whole term or sell tham on the SM? Easy to sell? Don’t be too fixated about SM. If you only invest what you are prepared to hold to term then relying on passing the default risk later on to the next buyer becomes less relevant.
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number5
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Post by number5 on Nov 9, 2018 7:53:18 GMT
My return from FS is lower - mainly due to being very uncareful at the start. My more recent strategy is giving better returns, but it includes selling loan parts at discount I'm afraid. Selling becomes more and more difficult, which makes me be more and more selective, hence reduction of my funds on FS. Yes, FC's SM was very "vibrant" prior to change... After giving it a lot of patience I've recently given up, sold everything I could and hoping for some returns from recoveries. As it stands today I've earned 3.6% in two years, much lower than "estimated return". I have far more better returns from LC and Rebs (both 9%+). I think I have lucky to date but not being careful how much I invest in a loan has come to bite me, hoping the loan renews and I am out! I am also having to sell loan parts at discount, what is your FS strategy now? Can't say I have looked at either LC or Rebs so far...a liquid SM?
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number5
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Post by number5 on Nov 9, 2018 7:57:09 GMT
That does really help...thanks! But how often do loans of 9.5% come about....to me it looks like they are more around 6/7%. Also do you keep the loans for the whole term or sell tham on the SM? Easy to sell? Don’t be too fixated about SM. If you only invest what you are prepared to hold to term then relying on passing the default risk later on to the next buyer becomes less relevant. I would rather not have to worry about whether a loan will pay back, at the expense of a lower return. Rather than be stuck in a defaulted loan with funds tied up. Only issue with that is need higher % rates like FS which even at discont selling gets return of 8.5-9%.
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Post by hammertime on Nov 9, 2018 14:38:41 GMT
What i do is only invest in loans over 9.5% in the MLA. And then the interest i get on my 30DAA i put into the MLA. The old loans that i am winding down from F/C i sweep into the MLA. And i just keep a close eye on the loans if i see one with a higher interest rate i will sell some of my loans that are at a lower rate and invest in the higher rate.I hope that helps. That does really help...thanks! But how often do loans of 9.5% come about....to me it looks like they are more around 6/7%. Also do you keep the loans for the whole term or sell tham on the SM? Easy to sell?
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number5
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Post by number5 on Nov 9, 2018 14:44:09 GMT
That does really help...thanks! But how often do loans of 9.5% come about....to me it looks like they are more around 6/7%. Also do you keep the loans for the whole term or sell tham on the SM? Easy to sell? Posted in error?
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Post by hammertime on Nov 9, 2018 14:47:19 GMT
What i do is look daily to see what percentage loans are on offer you have to get in there quick to buy and sell sometimes. But you can find them . Also look on the upcoming loans to see what is on offer. About keeping the loans for the whole term or not .Well i would just buy and sell them as and when i need to. Sell the lower interest loans and buy high.
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number5
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Post by number5 on Nov 9, 2018 14:54:42 GMT
What i do is look daily to see what percentage loans are on offer you have to get in there quick to buy and sell sometimes. But you can find them . Also look on the upcoming loans to see what is on offer. About keeping the loans for the whole term or not .Well i would just buy and sell them as and when i need to. Sell the lower interest loans and buy high. This is exactly what I imagined you would be doing and I see it something that is achievable. I used to do similar at FC between 8% v 10% loans. However I looked at upcoming loans and live loans with parts available to buy, I don't see hardly any at 9.5% or above. I am struggling to see how you could be making 11% on AC with that strategy..I am sure you do though!
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ceejay
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Post by ceejay on Nov 9, 2018 15:16:43 GMT
... I am struggling to see how you could be making 11% on AC with that strategy... You can't. Not any more - some time ago loans over 10% may have been commonplace, and you will see a few remnants of that in the lower loan numbers now. But these are very difficult to buy into, for obvious reasons. A more sensible target for MLA now would be 8%, I think.
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ilmoro
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Post by ilmoro on Nov 9, 2018 15:25:48 GMT
Apologies if Ive misunderstood but you dont seem to understand how it works. hammertime number5 you dont have to spot loans that are available to buy and you will never see most of them. Just decide what loans you wish to invest in and set targets on them, make sure you have funds available in your MLIA (swept to QAA so you are earning some interest) and the system will buy when there is availibilty |
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number5
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Post by number5 on Nov 9, 2018 15:41:57 GMT
Apologies if Ive misunderstood but you dont seem to understand how it works. hammertime number5 you dont have to spot loans that are available to buy and you will never see most of them. Just decide what loans you wish to invest in and set targets on them, make sure you have funds available in your MLIA (swept to QAA so you are earning some interest) and the system will buy when there is availibilty Apologies...I have not yet invested in AC yet. Was trying to gage an understanding of the return I could make following a strategy that I would be comfortable with. So are you saying, you can set a setting where if any loans come available at 9.5% say for this example, it will automatically take funds from your QAA and invest into them, without you having to do anything?
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