cjp1967
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Post by cjp1967 on Jun 2, 2019 12:43:38 GMT
Hi I'm wondering if FC will survive as a company and what will happen to the loans if they go under. I am seeing losses every month, bar one, this year and am starting to worry about it going under. Opinions please.
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cb25
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Post by cb25 on Jun 2, 2019 14:25:48 GMT
Hi I'm wondering if FC will survive as a company and what will happen to the loans if they go under. I am seeing losses every month, bar one, this year and am starting to worry about it going under. Opinions please.
Welcome to the forum.
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bramhall17
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Post by bramhall17 on Jun 2, 2019 14:38:38 GMT
The Lendy situation has clearly altered risk sentiments amongst P2P but it is wrong IMO to lurch from complacency to panic. Despite Brexit the UK economy is reasonably robust and should remain so in 2019. Sure there are some serious geo-political inspired market threats out there and a recession is almost inevitable at some stage in the near future. But if you are well diversified across various solid P2P providers ( cross referencing with this site/4th Way,Obvious Investor etc) and are not in just one sector but span Retail Lending <> B2B and Property ( with particular care!) then hopefully you can secure good returns this year and maybe next without wild levels of capital risk . P2P as a whole represents no more then 8--10% of my investments . Well -- that is my approach anyway Rodney .............
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Post by munchydave on Jun 2, 2019 14:51:15 GMT
The Lendy situation has clearly altered risk sentiments amongst P2P but it is wrong IMO to lurch from complacency to panic. Despite Brexit the UK economy is reasonably robust and should remain so in 2019. Sure there are some serious geo-political inspired market threats out there and a recession is almost inevitable at some stage in the near future. But if you are well diversified across various solid P2P providers ( cross referencing with this site/4th Way,Obvious Investor etc) and are not in just one sector but span Retail Lending <> B2B and Property ( with particular care!) then hopefully you can secure good returns this year and maybe next without wild levels of capital risk . P2P as a whole represents no more then 8--10% of my investments . Well -- that is my approach anyway Rodney ............. Not a question of will FC survive but more of can you make money. I was in 7 P2P sites and well diversified in all of them. Over 4 years I have made a loss in total though the figures have become so complex I am not able to quantify the loss with accuracy. In short I would have done better with 1 or 2% in NS&I and had no worries. In short I am out of all P2P
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bramhall17
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Post by bramhall17 on Jun 2, 2019 15:23:46 GMT
Fair point. But capital preservation trumps returns in my view. I have made good P2P returns ( ref:- bank /BB fixed bonds interest rates) over several years including FC. However, 'for the avoidance of doubt' as lawyers are inclined to say, I have been actively reducing my holdings in 2018/9. This includes FC where I am down to some < 30% of my peak exposure.
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trevor
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Post by trevor on Jun 2, 2019 16:16:07 GMT
I believe it will survive. It is now quoted on the stock market so investors will tolerate losses providing they can see some light at the end of the tunnel. They can change borrower/lender rates to make sure they survive. They currently have a very high rate of new loans from heavy advertising as they persue the goal of taking business from banks. The rates achieved by lenders are not as good as they were but I have received far more than if my money was sat in a savings a/c earning 2% or less. I diversify to other p2p's to reduce risk but I am still invested with them and will stay as far in it the future as I can see.
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cjp1967
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Post by cjp1967 on Jun 2, 2019 16:32:58 GMT
Thanks for the insights guys. I'm getting a bit twitchy but have been in P2P for some years and will stick with it for now. Can anybody say what will happen to the loan book if the company fails?
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Post by df on Jun 2, 2019 16:56:36 GMT
The Lendy situation has clearly altered risk sentiments amongst P2P but it is wrong IMO to lurch from complacency to panic. Despite Brexit the UK economy is reasonably robust and should remain so in 2019. Sure there are some serious geo-political inspired market threats out there and a recession is almost inevitable at some stage in the near future. But if you are well diversified across various solid P2P providers ( cross referencing with this site/4th Way,Obvious Investor etc) and are not in just one sector but span Retail Lending <> B2B and Property ( with particular care!) then hopefully you can secure good returns this year and maybe next without wild levels of capital risk . P2P as a whole represents no more then 8--10% of my investments . Well -- that is my approach anyway Rodney ............. Not a question of will FC survive but more of can you make money. I was in 7 P2P sites and well diversified in all of them. Over 4 years I have made a loss in total though the figures have become so complex I am not able to quantify the loss with accuracy. In short I would have done better with 1 or 2% in NS&I and had no worries. In short I am out of all P2P You can't until all your losses are crystallised. I don't have even a vague idea where I will end up. I expect substantial losses from COL, SS/Ly, FS, some AC loans etc., but also gains from other accounts/platforms. The only way to find out is to exit p2p all together and wait for some 5-10 years to "harvest" the result. I was lucky with FC. I've managed to earn enough to offset the losses. I have very little left on this platform so it's easy to predict a gain at around 0.6% per year. 2% protected bonds would've been a better choice, but on a positive note I had a good (free of charge) lesson with FC. Will FC survive? Probably will if their business outside UK works well.
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trevor
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Post by trevor on Jun 2, 2019 16:59:14 GMT
If FC fails administrators will take over, run down the loan book and return your money minus their monstrous fees.
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Post by gravitykillz on Jun 2, 2019 19:03:39 GMT
If a p2p lender is doing a bad job there investors would leave. Funding would dry up......eventually they would die.
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Post by shanghaiscouse on Jun 15, 2019 10:38:05 GMT
I think last year they lifted their skirt up and showed that the model has its limits, which is why the share price crashed. They pushed too hard to originate too many loans and the bad debt rates have spiked as a result. A lot of trust has been destroyed, especially amongst IPO investors. When you look at their annual report, they always make this claim that 2018 loans in the UK will get 5.1% - 6% returns, but my annualised return is down to 5.1% (from 9% two years ago) so right at the bottom of their range, which tells me that they are a little out of control.
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thedog
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Post by thedog on Jun 15, 2019 12:34:04 GMT
If FC fails administrators will take over, run down the loan book and return your money minus their monstrous fees. Sorry for replying to something 2 weeks old but new to the forum and only just seen this. Perhaps a techie point, (or perhaps not, Lendy will be an example) but Administrators have a legal duty to the Creditors of a failed business. So if a Platform fails the Administrators have a duty to maximise returns to the Creditors of the Platform. That's not us. We are Customers.
Regulated platforms are required to have funded Living Wills (probably for the appointement of a "Back Up Servicer" - how robust those plans are will only be seen if they are used). It's possible the Administrators could also act as BUS. If the Administrators cannot sell the Platform to another operator the BUS should run down the loans.
So hopefully just a techie point that it's the "BUS" not the "Administrator" who runs off the loan book but the risk is we are exposed to the existance and specification of the BUS Agreement - Administrators are appointed by a statutory framework, but the BUS isn't, and since the Administrator does not owe us any duty we can't place any reliance on that framework.
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