benaj
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Post by benaj on Jan 28, 2019 16:10:30 GMT
Any ideas are welcome.
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Post by wiseclerk on Jan 28, 2019 16:25:01 GMT
You sit back and watch, while you wait for an interesting looking platform to prove itself to be great over the months/years.
While that approach might be sensible to avoid any duds, you'd potentially miss out on the most prosperous years too. For me the first years in Bondora, Finbee, Fellow Finance, Lendy and Linked Finance provided the highest returns. After that it is regression to the mean (either by too much investor demand - fellow investors rushing in, removal of risk buffer and lowering the interest rates as pricing gets better on more data, platform more established - wants more fees, rates adjusting to the market average, you name it). While I was not early in Ratesetter AUS, it looks like rates are decreasing there too now, after having been stable for some years.
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Post by petebutt43 on Feb 4, 2019 13:07:02 GMT
Not necessarily with interest rates, though that could be a good indicator. Generally, any platform giving over 12 % is probably going to struggle to keep loans from going belly up as they would have to relax their due diligence to acquire business.
Ones to look for are thase that have buy-back schemes, where loans not performing for 60 days are bought back. There are several out there, but by far the best is Mintos, which is NOT a loan originator, but a middle man platform, so less likely to fall foul of liquidity and financial problems. They do a wide variety of currencies, of which I invest in Kazakhstan, Georgia and Euros;I have overall returns of about 14%, with no losses to defaults!!
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registerme
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Post by registerme on Feb 4, 2019 13:07:57 GMT
Ones to look for are thase that have buy-back schemes, where loans not performing for 60 days are bought back. There are several out there, but by far the best is Mintos, which is NOT a loan originator, but a middle man platform, so less likely to fall foul of liquidity and financial problems. They do a wide variety of currencies, of which I invest in Kazakhstan, Georgia and Euros;l overall returns about 14%, with no losses to defaults!! Also just been shown the door by the FCA.
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Post by petebutt43 on Feb 4, 2019 13:14:40 GMT
news to memore info please! Being a Baltic state company they don't HAVE to have FCA approval. What might be the problem is their GBP operations.
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registerme
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Post by registerme on Feb 4, 2019 13:22:47 GMT
news to memore info please! Being a Baltic state company they don't HAVE to have FCA approval. What might be the problem is their GBP operations.
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Post by petebutt43 on Feb 4, 2019 13:26:54 GMT
news to memore info please! Being a Baltic state company they don't HAVE to have FCA approval. What might be the problem is their GBP operations. Fromthe Mintos thread by Proptechfish I can understand why Mintos are having problems with a UK regulator. Mintos are are a loan aggregator that work with about 40 loan originators across 25 or so different territories. Trying to put in place the contingency administration process as per FCA regulatory requirement itself would be incredibly complicated and onerous. As for it being higher risk it depends how you view it, yes it's non FCA regulated but the UK is not it's main market. I lend on Mintos through loans offering buy backs only so I have never lost a penny of capital to date, however when you factor in the volatility of the exchange rate (GDP/EURO) my Mintos holdings can go from a stand out performer within my portfolio one month to a near wipe out of profit the next month and then back again. It's for those reasons I don't review Mintos on my blog, there's just too many moving parts. Personally I would find it a bit strange if it was UK regulated given it's wide territorial spread. Which blows your Doom and Gloom outhe window!!
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registerme
Member of DD Central
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Post by registerme on Feb 4, 2019 13:33:51 GMT
No doom and gloom from me, just a data point.
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Post by akagi on Feb 20, 2019 23:14:20 GMT
I guess it depends on one's aversion to risk... In any case it is always good to start by doing some research on the founders and who is going to be running the loan book
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