alibaba
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Post by alibaba on Aug 1, 2021 9:01:27 GMT
Brian's direct no nonsense approach is the reason I invested in the Proplend future fund, I wish that AC and some of the others would follow suit.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 1, 2021 11:24:34 GMT
Two interesting takeaways from the interview 1) Proplends pension is invested in platform 2) Mike Powell asked "So how would you fund an insolvent wind down? This is the issue that doesnt seem to have been covered in wind-down plan" The reply is around the one hour five minute mark "So in theory now you shouldn’t have an insolvent wind-down because if all platforms have got their wind-down plans in place then you would get the point where you would trigger your orderly wind-down and that would happen before you got to an insolvent wind-down I think insolvent wind-downs are probably something that hopefully that we’ve seen the back off because the parameters the FCA put in place are solvent wind down comes first and here are the trigger points…" IMO if that was the case then any solvent loan book would be taken over by another platform. Once a platform goes into run down borrowers will see it as an opportunity to delay or avoid repayments and the costs of chasing them will rapidly escalate. Those costs will reduce lenders' returns. I expect we will see before too long.
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metoo
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Post by metoo on Aug 1, 2021 17:54:15 GMT
That's very positive. Possibly wishful thinking as things do crop up as we saw with TC & MT starting as orderly wind downs*. I'm now paying 25% trust assets to administrators for a TC loan whose recovery had already been agreed upon beforehand - after about 2 years & whose receivership/platform fees are already being deducted - but whose 12m repayments just happen to overlap with TC hiding behind administrators! (*tbf OC are doing so & LC unless they start retail again.) Much has to depend on the quality of the loan book, whether the security is good enough eg for refinance with another lender, or for the borrower to execute their plans. MT was pushed into admin by a legal dispute with a borrower aiui. There are so many lousy loans there that it is costing a lot of time to unravel them. LC is/was still lending but in CBILS loans, only allowed to be funded by institutions, so not in wind down. Whether they return to offering retail investments, time will tell. It was said to be temporary. See the 2020 Outcomes Statement on the stats page. Default rates have been better than expected, likely due to govt support measures.
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Post by overthehill on Aug 1, 2021 20:58:42 GMT
That's very positive. Possibly wishful thinking as things do crop up as we saw with TC & MT starting as orderly wind downs*. I'm now paying 25% trust assets to administrators for a TC loan whose recovery had already been agreed upon beforehand - after about 2 years & whose receivership/platform fees are already being deducted - but whose 12m repayments just happen to overlap with TC hiding behind administrators! (*tbf OC are doing so & LC unless they start retail again.) Much has to depend on the quality of the loan book, whether the security is good enough eg for refinance with another lender, or for the borrower to execute their plans. MT was pushed into admin by a legal dispute with a borrower aiui. There are so many lousy loans there that it is costing a lot of time to unravel them. LC is/was still lending but in CBILS loans, only allowed to be funded by institutions, so not in wind down. Whether they return to offering retail investments, time will tell. It was said to be temporary. See the 2020 Outcomes Statement on the stats page. Default rates have been better than expected, likely due to govt support measures.
Almost all the platforms in this forum are vulnerable to malfeasant borrowers so work, credit and legal history are just as important as the security. Proplend have a great track record of working with the borrower but you can't do that with immoral and untrustworthy borrowers who are more interested in playing games and the system and making money without laying any bricks.
PL are the only P2P company that I'm willing to invest large sums. I'm sure there are more but I'm still on the fence.
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