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Post by hammertime on Nov 9, 2018 17:59:59 GMT
Also i did a similar thing with F/C which worked until there defaults got to bad.But i made a good profit .So when things went bad i joined A/C and again i am making a good profit .If the interest drops then i will move on to another P2p platform . Its just like switching banks really when there interest rate drops. You have to keep your finger on the pulse.
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number5
Member of DD Central
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Post by number5 on Nov 9, 2018 18:19:54 GMT
Also i did a similar thing with F/C which worked until there defaults got to bad.But i made a good profit .So when things went bad i joined A/C and again i am making a good profit .If the interest drops then i will move on to another P2p platform . Its just like switching banks really when there interest rate drops. You have to keep your finger on the pulse. I agree with you in switching...it worked quite well for me in FC. I have since moved to FS and was doing very well until the SM has been flooded and people seem to have lost confidence in the platform. My strategy is no longer working as well as it did before. Only thing about AC is their % rates seem lower
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Post by df on Nov 9, 2018 18:30:55 GMT
Also i did a similar thing with F/C which worked until there defaults got to bad.But i made a good profit .So when things went bad i joined A/C and again i am making a good profit .If the interest drops then i will move on to another P2p platform . Its just like switching banks really when there interest rate drops. You have to keep your finger on the pulse. I agree with you in switching...it worked quite well for me in FC. I have since moved to FS and was doing very well until the SM has been flooded and people seem to have lost confidence in the platform. My strategy is no longer working as well as it did before. Only thing about AC is their % rates seem lower Quite often the advertised return rate is not the same as you actually earn.
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number5
Member of DD Central
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Post by number5 on Nov 9, 2018 19:08:04 GMT
I agree with you in switching...it worked quite well for me in FC. I have since moved to FS and was doing very well until the SM has been flooded and people seem to have lost confidence in the platform. My strategy is no longer working as well as it did before. Only thing about AC is their % rates seem lower Quite often the advertised return rate is not the same as you actually earn. I agree...but that would require selling the loan for a premium, which I believe you can't do on AC?
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Post by hammertime on Nov 10, 2018 10:15:42 GMT
Hi.Does anyone know why the interest rates are falling at A/C. If it continues there wont be much point in having the MLA. Does anyone have any experience in other P2P platforms with hgher rates.
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Post by df on Nov 10, 2018 12:16:05 GMT
Hi.Does anyone know why the interest rates are falling at A/C. If it continues there wont be much point in having the MLA. Does anyone have any experience in other P2P platforms with hgher rates. I don't think they are falling. Vast majority of loans are 7%(+/-1.5%) and this has been stable for more than a year now. The 'era' of 10%+ ended long time ago. All 10%+ loans are old and not many of them are left on AC. The reason for interest rates being lower than in the past is competition with other providers. The point in using MLA is a chance of slightly higher returns than 30-Day as well as being in control of your loan parts and diversification. I have an experience with a number of platforms with higher rates. Overall it is not a delightful experience and in some cases it proved to be disastrous.
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itsnotme
An a great confusion will come upon the land ..
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Post by itsnotme on Nov 10, 2018 12:33:44 GMT
Interest rates may be falling because more and more people get into p2p. If there is no shortage of money there is less reason to put the rates up for the p2p company. It's good for them to lend out what they can get from us. Falling rates are an unfortunate (and risky) trend throughout the p2p landscape.
I currently get 8.45 on the AC MLA. That's before defaults and distributed across about 150 loans, most of them 8%+
Only 1 of the 150 is suspended at the moment. I usually consider going out of loans soon if and when negative news comes up: paying late repeatedly, increased LTV above some level, delays of whatever sort especially if explanations are short or dubious, etc .. the QA section per loan is very useful. Most of the time I just half the investment.
I'd agree with earlier posts that it is currently possible to get above 10% and probably 11%+, but not well diversified. Go to the list of all loans and sort by interest rate and you will see that almost everything above 11% is flagged as suspended. There may still be several loans in that range worth the risk. In contrast there are few loans below 8% flagged as suspended.
Fresh 10%+ loans are very infrequent now. One has to go through the SM. This is possible in my experience only for relatively small amounts, perhaps a few 100 a day. There are various loans with large amounts on the SM, mostly property. They may allow for larger amounts to invest quickly but I have never tried more than 50 or so on those at any time, mostly to not spoil diversification targets.
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trium
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Post by trium on Nov 11, 2018 9:14:40 GMT
848 is one recent 10% offering with squillions available. I have lots of loans at 9%+ but I also take 6-7% if the LTV is low and the proposition is otherwise sound. I believe a disaster-resistant portfolio needs loans of that nature to smooth the ride. A portfolio which simply focuses on the highest rates is likely to be also focusing on the highest risk and will undoubtedly encounter more defaults.
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blender
Member of DD Central
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Post by blender on Nov 11, 2018 10:52:43 GMT
848 is one recent 10% offering with squillions available. I have lots of loans at 9%+ but I also take 6-7% if the LTV is low and the proposition is otherwise sound. I believe a disaster-resistant portfolio needs loans of that nature to smooth the ride. A portfolio which simply focuses on the highest rates is likely to be also focusing on the highest risk and will undoubtedly encounter more defaults.Is that so? It should be because the rate is set according to perceived risk. However, that does not inevitably lead to more defaults. I am new to AC and so I do not know if there is a correlation of past defaults with rate. Are the stats available? And even if there are more defaults, does that mean higher losses and a lower return? It should not be so, and FC recognises this in their 'conservative' and 'balanced' options, where they predict higher returns from the higher risk loans (on average and with less resilience to downturns). As an AC newbie I have split between the GBBA and the MLA. I wonder what the point is in taking the MLA and picking the 6-7% loans - do you not end up with the GBBA results and a lot of unnecessary work? So I have taken the loans of 8% and more (excluding a few), and I expect to do better than the GBBA. The problem is that there are insufficient loans for diversity, but I will compare after a year and adjust. And maybe open a IFISA in April on the basis of how it is going. (note: I can afford to lose all my capital in the MLA due to my extremely risky approach - but I would be very, very, cross.)
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SteveT
Member of DD Central
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Post by SteveT on Nov 11, 2018 11:30:17 GMT
As an AC newbie I have split between the GBBA and the MLA. I wonder what the point is in taking the MLA and picking the 6-7% loans - do you not end up with the GBBA results and a lot of unnecessary work? So I have taken the loans of 8% and more (excluding a few), and I expect to do better than the GBBA. The problem is that there are insufficient loans for diversity, but I will compare after a year and adjust. And maybe open a IFISA in April on the basis of how it is going. (note: I can afford to lose all my capital in the MLA due to my extremely risky approach - but I would be very, very, cross.)
One advantage of the MLIA is that you've the option of selling at a discount should there be a large queue and you wish to release funds or exit a specific loan (until / unless it gets suspended, anyway). Also to pick up any parts offered at a discount, if you set up speculative Buy orders in readiness. Also, you're in control of how much you choose to buy. That said, I mainly target 8%+ loans anyway and regard "self-insuring" via diversified MLIA holdings to be a better bet than the GBBA2. Once you get the hang of setting / adjusting MLIA orders, it's really very little work (maybe 20-30 mins weekly) and certainly much less than we used to commit to Frankly Cumbersome.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Nov 11, 2018 11:36:46 GMT
848 is one recent 10% offering with squillions available. I have lots of loans at 9%+ but I also take 6-7% if the LTV is low and the proposition is otherwise sound. I believe a disaster-resistant portfolio needs loans of that nature to smooth the ride. A portfolio which simply focuses on the highest rates is likely to be also focusing on the highest risk and will undoubtedly encounter more defaults. And it was available with a 1% discount.
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Post by thingy on Nov 11, 2018 12:58:30 GMT
If you only invest in loans offering 9% plus you are rather limiting yourself and potentially missing out on some decent loans.
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Post by hammertime on Nov 11, 2018 16:36:03 GMT
Yes i agree some persons on this forum think they have all the ideas when they are <redacted>. I have made my money on a large scale to retire on if you dont like it tough.
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lara
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Post by lara on Nov 11, 2018 18:16:45 GMT
Yes i agree some persons on this forum think they have all the ideas when they are <redacted>. I have made my money on a large scale to retire on if you dont like it tough. Actually, I'm amazed at how generously the forum members here share their ideas and their strategies. If you don't agree with them, that's fine, but name calling isn't helpful.
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Post by thingy on Nov 11, 2018 21:22:53 GMT
I also, am immensely grateful for the insights and suggestions offered by other investors.
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