ashtondav
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Post by ashtondav on Apr 18, 2019 15:06:49 GMT
on credit card (unsecured) lending
So only go with the strongest platforms with proven risk assessment. As far as I can see FC and ZOPA are both being impacted and the RS provision fund is heading south (so much so that RS no longer publish it except one month in arrears.)
Who reckons who's best placed to survive the inevitable Tsunami when unemployment (currently at a record low) increases?
Winter is coming......
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benaj
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Post by benaj on Apr 18, 2019 21:49:29 GMT
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registerme
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Post by registerme on Apr 18, 2019 22:06:50 GMT
So whilst that only covers up to the end of 2018 it looks.... relatively benign to me. Other thoughts / opinions?
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Post by gravitykillz on Apr 18, 2019 22:09:35 GMT
Pull out of p2p lending in unsecured Loans and Jump into landbay ?
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Post by gravitykillz on Apr 18, 2019 22:11:12 GMT
Lending works RED flag
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benaj
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Post by benaj on Apr 18, 2019 22:21:01 GMT
So whilst that only covers up to the end of 2018 it looks.... relatively benign to me. Other thoughts / opinions? I expect higher growth in loans than credit card for debt consolidation. Credit card interest is usually higher than any unsecured loan and debt consolidation will help to reduce monthly outgoing.
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registerme
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Post by registerme on Apr 18, 2019 22:38:18 GMT
Pull out of p2p lending in unsecured Loans and Jump into landbay ? I started pulling out of p2p lending in unsecured loans in June 2016  .
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Post by dan1 on Apr 18, 2019 22:51:04 GMT
Pull out of p2p lending in unsecured Loans and Jump into landbay ? What will proposed changes/abolition of Section 21 Notice mean for BTL, if anything?
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Post by gravitykillz on Apr 19, 2019 0:05:14 GMT
Just when i was thinking of chucking a few quid into crowd property. Now i am paranoid.
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benaj
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Post by benaj on Apr 19, 2019 9:47:27 GMT
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Post by davee39 on Apr 19, 2019 10:22:18 GMT
There are red flags across the entire sector.
The companies have enjoyed very strong growth, so new money has helped mask the defaults. My take on the sector in general is
Funding Circle - Institutional investors in whole loans have been disappointed by performance. Funding Circle is closing its investment trust which fell to a discount as reality dawned. Never mind, the founders have done well from the company float (not the taken in shareholders).
Ratesetter - Ex Growth, provision fund stretched, constant changes in rules trying to explain away that all is well. Really? Cover was 180% (not 115%) when I started with them. Pulling out as loans repay. Probably not strong enough to float and loss making.
Zopa - Unable to maintain provision fund. Very poor performance - estimated interest rates include value of recoveries - which could take years. Loss making after 15 years and now more interested in being a Bank.
Assetz - possibly the best bet but has made mistakes. Large sums locked into 'protected' accounts due to defaults, but provision fund unlikely to pay out for years. Quick access accounts look better value, but could fail. I have moved all unlocked funds to Quick access.
The 12 per-centers. For those who claimed you cannot lose money on property - WRONG!!
After that a range of oddments, no site stands out, all have risks. I especially ignore any offer with a large sign up bonus.
I am fleeing to cash (2.25% for 2 years) and higher yield equity/bond funds
P2P - AVOID
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r00lish67
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Post by r00lish67 on Apr 19, 2019 10:32:40 GMT
on credit card (unsecured) lending
So only go with the strongest platforms with proven risk assessment. As far as I can see FC and ZOPA are both being impacted and the RS provision fund is heading south (so much so that RS no longer publish it except one month in arrears.)
Who reckons who's best placed to survive the inevitable Tsunami when unemployment (currently at a record low) increases?
Winter is coming......
"Credit card lenders reported that defaults jumped to their highest level since the first half of 2017, following a deteriorating trend that dates back to last summer" “The credit card balance default rate hasn’t been higher since the first half of 2017 and marks a return to rocky ground" Not to say this isn't an unwelcome trend, but I don't recall us particularly panicking in the first half of 2017, so why should we now? IMV, FC's problem is/was flinging out loans left right and centre to all and sundry. When the platform was more open, we saw some horrendous examples of very risky loans associated with laughable rates. It's no surprise to me that their loanbook is now performing poorly. Also IMV, much of Zopa's issue has been with the riskier D/E type loans which caused Z+ to perform so poorly rather than any particular downward trend. Bottom line - a newspaper article with the biggest punch being one economic measure at its worst in 2.5 years is hardly squeaky bum time yet. Worst since 2008, that would be worth looking more closely at..
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r00lish67
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Post by r00lish67 on Apr 19, 2019 10:35:53 GMT
There are red flags across the entire sector. The companies have enjoyed very strong growth, so new money has helped mask the defaults. My take on the sector in general is Funding Circle - Institutional investors in whole loans have been disappointed by performance. Funding Circle is closing its investment trust which fell to a discount as reality dawned. Never mind, the founders have done well from the company float (not the taken in shareholders). Ratesetter - Ex Growth, provision fund stretched, constant changes in rules trying to explain away that all is well. Really? Cover was 180% (not 115%) when I started with them. Pulling out as loans repay. Probably not strong enough to float and loss making. Zopa - Unable to maintain provision fund. Very poor performance - estimated interest rates include value of recoveries - which could take years. Loss making after 15 years and now more interested in being a Bank. Assetz - possibly the best bet but has made mistakes. Large sums locked into 'protected' accounts due to defaults, but provision fund unlikely to pay out for years. Quick access accounts look better value, but could fail. I have moved all unlocked funds to Quick access. The 12 per-centers. For those who claimed you cannot lose money on property - WRONG!! After that a range of oddments, no site stands out, all have risks. I especially ignore any offer with a large sign up bonus. I am fleeing to cash (2.25% for 2 years) and higher yield equity/bond funds P2P - AVOID Notwithstanding my previous post re: that article in particular, I agree with nearly all of the above. I personally am still investing in P2P however, but am nearly entirely out of the 12%-ers and am down 60-70% in platforms such as LW, RS and AC.
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ashtondav
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Post by ashtondav on Apr 19, 2019 11:21:58 GMT
Err, because it was a leading indicator of what happened less than a year later. The biggest financial disaster since the ‘30s
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benaj
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Post by benaj on Apr 19, 2019 11:45:27 GMT
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