bigfoot12
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Post by bigfoot12 on Nov 19, 2018 15:15:23 GMT
I seem to be inundated with cashback/ipad/refer a friend offers at the moment. I did stick a bit more into AC a couple of months ago (before they extended the deadline), but otherwise nothing else appeals much. Do we think it is a surge in demand for borrowing, or a decline in investments? wiseclerk's numbers for October don't seem massively higher then previously. |
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elliotn
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Post by elliotn on Nov 19, 2018 15:27:59 GMT
I seem to be inundated with cashback/ipad/refer a friend offers at the moment. I did stick a bit more into AC a couple of months ago (before they extended the deadline), but otherwise nothing else appeals much. Do we think it is a surge in demand for borrowing, or a decline in investments? wiseclerk's numbers for October don't seem massively higher then previously. I got an iPad mini back in the day from WCo, who’s offering one now?  Edit - just got the email lol !
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Post by df on Nov 19, 2018 16:17:00 GMT
I seem to be inundated with cashback/ipad/refer a friend offers at the moment. I did stick a bit more into AC a couple of months ago (before they extended the deadline), but otherwise nothing else appeals much. Do we think it is a surge in demand for borrowing, or a decline in investments? wiseclerk 's numbers for October don't seem massively higher then previously. I got an iPad mini back in the day from WCo, who’s offering one now? Edit - just got the email lol ! I've recently received a number of e-mails of the same content I would have thought if FC is desperate for more lender's funds they could be more successful offering CB (like everyone else) instead of tablets.
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archie
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Post by archie on Nov 19, 2018 16:22:10 GMT
I thought the FC offer ended last week. I wasn't that desperate for an iPad.  |
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invester
P2P Blogger
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Post by invester on Nov 19, 2018 16:23:37 GMT
I got one from Wellesley.
Are these reliable? Reading their forum it appears a really mixed bag.
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bigfoot12
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Post by bigfoot12 on Nov 19, 2018 16:33:36 GMT
I got one from Wellesley. Are these reliable? Reading their forum it appears a really mixed bag. I am not impressed and as money matures in mine it is coming out. Losses look likely, including the provision fund which seems to lost without a trace!
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Post by df on Nov 19, 2018 16:37:21 GMT
I seem to be inundated with cashback/ipad/refer a friend offers at the moment. I did stick a bit more into AC a couple of months ago (before they extended the deadline), but otherwise nothing else appeals much. Do we think it is a surge in demand for borrowing, or a decline in investments? wiseclerk 's numbers for October don't seem massively higher then previously. It depends on platform, but I think overall it is decline in investments. In my observation, LC is at the top of "generosity" list atm. Doesn't appeal to me, I don't want to be over exposed, but if I wasn't in LC I would probably go for the offer.
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Post by GSV3MIaC on Nov 19, 2018 20:43:26 GMT
"Yes" is the short answer for the OP's thread question, imo. Between Collateral, and the current bad press, it does look like the honeymoon is over for many companies. The early adopters (lenders) are probably in for more than they'd really like, and the new cannon fodder are reading the entrails and holding back. Doesn't help that there is several hundred million tied up in overdue loans, so not available for new offerings.
First prize .. an iPad. Second prize .. two iPads?
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Post by notascooby on Nov 20, 2018 17:07:45 GMT
And of course the Godzilla in the room is uncertainty of Brexit (NOT inviting comments. NOT wanting a fight). There is a a fear that some borrowers will go to the wall or otherwise be adversely affected. Investors may be unsure of their own position. Since a fair number of us in P2P are also Monevator and Simple Living readers it seems likely that we are looking at the wisdom there and holding cash or going for safer havens. Unfortunately, as has been repeatedly demonstrated, the valuations of collateral (sic) against loans have been woefully inaccurate. So P2P is not felt to be a safe harbour.
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bigfoot12
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Post by bigfoot12 on Nov 20, 2018 17:14:57 GMT
The early adopters (lenders) are probably in for more than they'd really like, and the new cannon fodder are reading the entrails and holding back. Aren't the early adopters mostly out by now? I (started 2007) have seen the terms deteriorate so much that I have significantly reduced my P2P lending from the peak. BTW another email, this time Landbay ISA with a 1% gift back scheme - vouchers roughly equivalent to 1% for deposits £5k - 20k.
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Post by mrclondon on Nov 20, 2018 18:39:47 GMT
The early adopters (lenders) are probably in for more than they'd really like, and the new cannon fodder are reading the entrails and holding back. Aren't the early adopters mostly out by now? I (started 2007) have seen the terms deteriorate so much that I have significantly reduced my P2P lending from the peak. [...] Not me, my p2p balance is as high as its been over the last 5 years, and I'm not particularly intending reducing it. Why would I (other than a fear of macro economic melt down) ? My target has been for a 6% return, and even if I factor in sensible loss provisions for all the overdue loans I'm in I still have an XIRR of over 8% pa across the last 12 years (and over 9% if my provisions on COL turnout to be unecessarily cautious).
Where I have tripped up is that on occaisons the subconsious "greed" of trying to be pretty much fully invested has led to a few poor decisions under the time pressure of fastest finger first and fear of missing out.
A couple of months back there were a number of high value FS loan redemptions, and the FS SM liquidity immediately jumped, but has slowed to a crawl again now. To answer the OP, yes p2p companies are indeed struggling for investments, primarily because there is minimal new money coming into the sector, and the overdue loan pile is still growing as a percentage of the overall loanbooks reducing the recycling of funds into new loans.
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zlb
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Post by zlb on Nov 20, 2018 21:19:31 GMT
I've marvelled at how many borrowers there are, business and property-wise.
But also wondered whether the quality of investments have shifted to the less sure, as platforms have sought to grow too quickly.
What causes a borrower to end up funnelled toward one platform or another?
Why would a borrower end up at BM not AC and not FC for example.
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cwah
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Post by cwah on Nov 21, 2018 12:33:24 GMT
Aren't the early adopters mostly out by now? I (started 2007) have seen the terms deteriorate so much that I have significantly reduced my P2P lending from the peak. [...] Not me, my p2p balance is as high as its been over the last 5 years, and I'm not particularly intending reducing it. Why would I (other than a fear of macro economic melt down) ? My target has been for a 6% return, and even if I factor in sensible loss provisions for all the overdue loans I'm in I still have an XIRR of over 8% pa across the last 12 years (and over 9% if my provisions on COL turnout to be unecessarily cautious).
Where I have tripped up is that on occaisons the subconsious "greed" of trying to be pretty much fully invested has led to a few poor decisions under the time pressure of fastest finger first and fear of missing out.
A couple of months back there were a number of high value FS loan redemptions, and the FS SM liquidity immediately jumped, but has slowed to a crawl again now. To answer the OP, yes p2p companies are indeed struggling for investments, primarily because there is minimal new money coming into the sector, and the overdue loan pile is still growing as a percentage of the overall loanbooks reducing the recycling of funds into new loans.
If you are targetting 6% return, wouldn't you be better off buying company bonds such as the ones in wisealpha? Maybe be safer than p2p bridging?
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Post by mrclondon on Nov 21, 2018 14:24:50 GMT
Not me, my p2p balance is as high as its been over the last 5 years, and I'm not particularly intending reducing it. Why would I (other than a fear of macro economic melt down) ? My target has been for a 6% return, and even if I factor in sensible loss provisions for all the overdue loans I'm in I still have an XIRR of over 8% pa across the last 12 years (and over 9% if my provisions on COL turnout to be unecessarily cautious).
Where I have tripped up is that on occaisons the subconsious "greed" of trying to be pretty much fully invested has led to a few poor decisions under the time pressure of fastest finger first and fear of missing out.
A couple of months back there were a number of high value FS loan redemptions, and the FS SM liquidity immediately jumped, but has slowed to a crawl again now. To answer the OP, yes p2p companies are indeed struggling for investments, primarily because there is minimal new money coming into the sector, and the overdue loan pile is still growing as a percentage of the overall loanbooks reducing the recycling of funds into new loans.
If you are targetting 6% return, wouldn't you be better off buying company bonds such as the ones in wisealpha? Maybe be safer than p2p bridging?
No, because for me the main attraction of p2p is providing finance to those many "good" borrowers for whom MegaBank's computer says no. SME's and sole traders are the bed rock of the UK economy, and they need encouragement, guidance and support which is no longer forthcoming from banks with the demise of the traditional bank manager. Those p2p platforms with regional origination teams, or a relationship with hands on brokers are to an extent able to fulfil the soft skills side of the traditional bank manager, in cajoling the production of accurate and timely accounts for example.
The UK is already over reliant on multi-national corporations, to the extent that their needs (demands often) are fulfilled to the detriment of SME's.
The vast majority of companies on Wisealpha I absolutely would not want to support through debt funding (and even reluctantly via equity) - Shop Direct, Santander, Debenhams, Virgin Media, Centrica, EDF etc Santander has caused countless SME's grief through the closure of the old Abbey National free for life business accounts, Shop Direct's catalogue brands are predominately used by those at the bottom of the income scale buying on credit they will eventually default on, .... you get the picture.
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cwah
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Post by cwah on Nov 21, 2018 22:05:48 GMT
If you are targetting 6% return, wouldn't you be better off buying company bonds such as the ones in wisealpha? Maybe be safer than p2p bridging?
No, because for me the main attraction of p2p is providing finance to those many "good" borrowers for whom MegaBank's computer says no. SME's and sole traders are the bed rock of the UK economy, and they need encouragement, guidance and support which is no longer forthcoming from banks with the demise of the traditional bank manager. Those p2p platforms with regional origination teams, or a relationship with hands on brokers are to an extent able to fulfil the soft skills side of the traditional bank manager, in cajoling the production of accurate and timely accounts for example.
The UK is already over reliant on multi-national corporations, to the extent that their needs (demands often) are fulfilled to the detriment of SME's.
The vast majority of companies on Wisealpha I absolutely would not want to support through debt funding (and even reluctantly via equity) - Shop Direct, Santander, Debenhams, Virgin Media, Centrica, EDF etc Santander has caused countless SME's grief through the closure of the old Abbey National free for life business accounts, Shop Direct's catalogue brands are predominately used by those at the bottom of the income scale buying on credit they will eventually default on, .... you get the picture.
Aaah i see. You lend not just for safe return but also for your belief!!! Very noble!
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