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Post by df on Nov 11, 2018 22:13:48 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.)
FWIW, I wouldn't recommend GBBA. I'm not in GBBA2, only in the original one, so I might be wrong, but in GBBA1 diversification was very poor and I ended up with defaulted loans of the value I would never ever indulge myself risking. It is still unknown how PF is going to meet it's commitment and when these loans will be declared as crystallised loss... I think one will be better off having control of their investments. In my opinion, it would be better if AC limited the range of accounts to three (QAA, 30-day and MLA). My bottom limit is 7% and I buy 6.5% if offered with discount.
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ceejay
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Post by ceejay on Nov 11, 2018 23:17:57 GMT
... FWIW, I wouldn't recommend GBBA. I'm not in GBBA2, only in the original one, so I might be wrong, but in GBBA1 diversification was very poor and I ended up with defaulted loans of the value I would never ever indulge myself risking. It is still unknown how PF is going to meet it's commitment and when these loans will be declared as crystallised loss... I think one will be better off having control of their investments. In my opinion, it would be better if AC limited the range of accounts to three (QAA, 30-day and MLA). My bottom limit is 7% and I buy 6.5% if offered with discount. I agree. I'm not in GBBA, but I was in GBBA2 for a trial run which I abandoned as soon as I could. Diversification is a lot better now that they have implemented the auto part swapping process, though that does leave you with an awful lot of little fragments. But you still buy stuff you have no control over, and then can't sell when it goes bad. I am actively using MLA - yes, something might go wrong but at least I'm selecting loans which meet my personal criteria, which quite a few loans in the overall portfolio don't. The QAA and 30DAA work extremely well alongside MLA.
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angrysaveruk
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Say No To T.D.S
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Post by angrysaveruk on Nov 12, 2018 12:54:22 GMT
Personally I found the idea of unsecured lending to small business given the % that fail a bad idea when I first got into P2P so I went down the personal loan route of Zopa rather than FC - which for a time was profitable. The bulk of my P2P investments are with AC at the moment and in my opinion AC is on the right track providing small to medium sized business loans backed by bricks and mortar security (they should definitely avoid the larger business loans with questionable security) and I would say the 30 day account (which you can continually withdrawl and then redeposit from which makes it 15 day access on average) at 5% + isnt bad if you are willing to take the gamble - but remember that P2P is a risky investment (which is part of the fun  ) so dont play with money you cant lose or have locked up for a while in bad loans that are in recovery. |
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puddleduck
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Post by puddleduck on Nov 12, 2018 13:06:19 GMT
I use the 30 day account to hold funds for property auction purchases - I tend to go in with a list of 6 or 7 targets, knowing I have 28 day completion window, if successful. So about 32 days before the auction date, I make a withdrawal request. If I'm unsuccessful the money goes back in, and it earns 5.1% until the next auction.
Should rates drop, I'd re-evaluate that, but being able to have funds by a certain date (in normal market conditions), is a huge draw for me.
I rarely use FC even though I still have an account, but I don't recall it being so reliably easy to get money out, although par sales often seemed to get snapped up by bots so funds were received quickly. I guess thats all changed since its now a black box account.
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Post by hammertime on Nov 12, 2018 13:42:02 GMT
Yes F/C was good until they changed there system then i got out as soon as i could. Lots of other investers left to.Im more than happy with my 10.88% interest in the MLA.
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Post by hammertime on Nov 13, 2018 14:46:24 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 hammertime on Nov 13, 2018 14:47:20 GMT
Number 5 what did you decide to do in the end.
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number5
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Post by number5 on Nov 13, 2018 14:58:10 GMT
Number 5 what did you decide to do in the end. I am currently still only in FS, but with cash drag waiting/hoping for the new loans in the investment opportunities coming soon section. However what is concerning me slightly is that the SM is flooded with -1%. Only hope is I have seen this couple times before in the last year and it usually fixes itself to a certain degree in a couple of months. AC sounds really good if not perfect, to what I am looking for but at lower rates than I would hope for. If things continue as they are on FS I may have to settle for a lower return on AC. MT don't seem to have many new loans and to get diversified would take a long time Not really seen any other good options
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Post by hammertime on Nov 13, 2018 15:56:52 GMT
Well my interest crept up over the last few days and im now getting 11.04%. ive also just seen a loan at 13.75% come on to the market so it is feasible if you have time to keep checking .
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number5
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Post by number5 on Nov 13, 2018 16:01:08 GMT
Well my interest crept up over the last few days and im now getting 11.04%. ive also just seen a loan at 13.75% come on to the market so it is feasible if you have time to keep checking . Where do you see the loan % rate available on the market?
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Post by hammertime on Nov 13, 2018 16:41:51 GMT
Its on the loans available page.
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number5
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Post by number5 on Nov 13, 2018 16:47:31 GMT
Its on the loans available page. Is this in the browse loans page and under the annual rate column? I though this is the original loan rate
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Post by hammertime on Nov 13, 2018 16:57:54 GMT
The interest rates in funding secure look quite good.Is it easy to sell your loans though .And have You had any problems with F/S.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 13, 2018 17:00:01 GMT
It's in default so the rate is 3% higher than the normal rate. It's also why it has visible availability. It also appears to be accruing as this month's payment is now due in Dec which is the only unofficial end date.
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number5
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Post by number5 on Nov 13, 2018 17:04:58 GMT
The interest rates in funding secure look quite good.Is it easy to sell your loans though .And have You had any problems with F/S. It used to be easy...used to be very good. I was at a point where I was earning 12.5% by only selling on the SM. Now, however everything has come to a standstill and it is not possible to guarantee selling before term, which is what I don't like and have had to stop investing as I used to. No problems as such so far, but I have been locked into loans over last month, which is a first. So will have to see how that goes.
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) so dont play with money you cant lose or have locked up for a while in bad loans that are in recovery.