ashtondav
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Post by ashtondav on Feb 16, 2019 9:32:08 GMT
Hmmm, what are you talking about? Ratesetter is making losses because of a business decision. Nothing to do with either debts or defaults
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cwah
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Post by cwah on Feb 16, 2019 9:35:37 GMT
I thought it was because the company couldn't pay back their debt? So they bought it?
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sd2
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Post by sd2 on Feb 16, 2019 9:40:49 GMT
The defaults rise but overall they are still profitable. I assume that the vast majority don't default so still make a profit. Remember I said I can get £10,000 at 2.8% interest no other loans charge that low an interest. It implies the banks think they are the lowest risk based entirely on past performance. Think back to 2007/8 and:- NROCK: bust HBOS: forced into a takeover by Lloyds by the government RBOS: basically bust, now struggling back to life Irish banks: bust Lehman Brothers: bust Bear Stearns: bust, forced into a takeover by Merril Lynch by the US government DB: gutted, and still gutted CB: gutted, and still gutted Various landesbanks: gutted The list goes on. Are you saying this was a product of personal unsecured loans? Again I can get loans at 2.8% that implies low risk.
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cwah
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Post by cwah on Feb 16, 2019 9:56:51 GMT
Think back to 2007/8 and:- NROCK: bust HBOS: forced into a takeover by Lloyds by the government RBOS: basically bust, now struggling back to life Irish banks: bust Lehman Brothers: bust Bear Stearns: bust, forced into a takeover by Merril Lynch by the US government DB: gutted, and still gutted CB: gutted, and still gutted Various landesbanks: gutted The list goes on. Are you saying this was a product of personal unsecured loans? Again I can get loans at 2.8% that implies low risk. You get quoted 2.8% because they've identified YOU as low risk. You probably have a permanent job AND some asset such as a flat they can pursue if you default. In my case, I often receive advert of 2-3% loan but when I check the rate they give me it always end up around 15%. That is because I'm self employed AND don't own property
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zlb
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Post by zlb on Feb 16, 2019 11:41:02 GMT
Perhaps being offered either 2.8% or 15% indicates that banks are being cautious, rather than worried.
Also, did all those banks go bust owing to domestic debt...did the new rules brought in after that crash, separate equity investment off, or all lending/investment?
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Post by imperial on Feb 26, 2019 15:54:46 GMT
Am i correct in assuming these p2p sites have the strongest provision funds in comparison to their loans : 1. Lending works 2. Ratesetter 3. Welendus 4. Growth street RS loan book £842m, PF £39m, 4.65% LW loan book £78m PF £3.2m 4.1% GS loan book £23m PF £869k 3.73% WL don't know. RS + LW include future income so take your own view on that. Of course PF size to loan book is not the real story as it depends on the riskiness of the underlying assets, hence the need for the platforms to provide some idea of the expected losses. But from the LW website, PF usage 2015 198%, 2016 216% (25% still outstanding) 2017 86% (48% still outstanding). This does not compare favourably with RS performance on this measure. Both LW and GS funds include input from the shareholders, RS is almost entirely self-sustaining from borrower contributions (apart from wholesale debacle which has now been stopped). Relying on the possibility of future shareholder input in the event of big PF losses does not seem to be a sensible strategy.
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