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Post by bluehorseshoe on Nov 10, 2019 16:59:48 GMT
Wow... someone loaned over 1m. I wish I could have the confidence to loan a lot more I'm too cautious, but that's probably a good thing. :-( Wonders what the average amount loaned is.... I Wow I've got 7.6k and I thought that was a lot!
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alanh
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Post by alanh on Nov 20, 2019 19:21:39 GMT
I see the stats update that was supposed to be today has been postponed until 28th November. I am not exactly filled with confidence by all this.
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zlb
Member of DD Central
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Post by zlb on Nov 22, 2019 20:18:41 GMT
Zopa are a pretty bumpy at the moment. I wonder how their borrowers differ from LW, and whether the shield is currently covering up a similar scenario to Z at this time.
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alanh
Posts: 556
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Post by alanh on Nov 23, 2019 12:28:04 GMT
I don't use Zopa. What has happened there?
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Post by propman on Nov 25, 2019 13:57:09 GMT
Zopa have a range of borrowers including a large number of supposedly low risk borrowers who are lent money very cheaply. LW must be the c-D loans on Zopa due to the APRs they are prepared to pay. I would expect that they are closer to RS than Zopa. the big difference is that on Zopa there is no shield so 4 months late in paying the lender takes the hit for the loan default. This means that bad debts are much more immediate and obvious than on RS.
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zlb
Member of DD Central
Posts: 1,422
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Post by zlb on Nov 27, 2019 13:09:56 GMT
Zopa have a range of borrowers including a large number of supposedly low risk borrowers who are lent money very cheaply. LW must be the c-D loans on Zopa due to the APRs they are prepared to pay. I would expect that they are closer to RS than Zopa. the big difference is that on Zopa there is no shield so 4 months late in paying the lender takes the hit for the loan default. This means that bad debts are much more immediate and obvious than on RS. so if Z lower risk borrowers are defaulting more, one could assume that the higher risk C D borrowers are also likely to be defaulting more. Unless Z a/b borrowers are hitting difficulties for the first time. In which case, that could be a warning in itself. However, i doubt that there would be an increase in a/b borrower default and not also proportionately in c/d defaults across all platforms. It's a hypothesis.
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alanh
Posts: 556
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Post by alanh on Nov 28, 2019 10:11:36 GMT
The latest statistics have been published today. The shield cash continues to deplete rapidly - from £582k last month to £412k now. On the other hand the total size of the shield has increased enormously from £2.87m to £5.79m driven by a corresponding huge increase in shield future income from £2.29m to £5.38m.
Given that the loan book size has not changed much I cannot see any reason or explanation for this more than doubling of contracted future income. How is it justified?
I also notice that the stats page is now to be updated less frequently - the next update is scheduled for 31/1/20. Less transparency is not a good thing.
Based on all this, I'm out - at least until some justification is provided and certainly until I see the next set of statistics which at current depletion rates would see the shield cash at zero.
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Post by jono75 on Nov 28, 2019 10:29:13 GMT
That is disappointing, I was hoping it would at least stabilise. Also, is the shield now discretionary as it now states "The Lending Works Shield does not give you a right to a payment so you may not receive a pay-out even if you suffer loss." This is what is putting me off Assetz Capital, and now LW. I'm not investing in either currently, only RS, I'm biding my time.
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Post by Matthew on Nov 28, 2019 11:07:20 GMT
That is disappointing, I was hoping it would at least stabilise. Also, is the shield now discretionary as it now states "The Lending Works Shield does not give you a right to a payment so you may not receive a pay-out even if you suffer loss." This is what is putting me off Assetz Capital, and now LW. I'm not investing in either currently, only RS, I'm biding my time. Hi jono75The Shield has always been discretionary. The risk warning you see is a new mandatory warning applying to all firms operating a contingency fund, from 9 December, in line with the FCA's new rules on P2P. Thanks
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alanh
Posts: 556
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Post by alanh on Nov 28, 2019 11:09:24 GMT
Matthew could you please explain why the future income element of the shield has more than doubled?
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Post by Matthew on Nov 28, 2019 11:16:35 GMT
Matthew could you please explain why the future income element of the shield has more than doubled? Hi alanhEmail going out shortly which will explain the many changes you may already be seeing on the website. Will start a new thread on that shortly so any queries can be addressed there. Thanks
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r00lish67
Member of DD Central
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Post by r00lish67 on Nov 28, 2019 11:18:30 GMT
I can't immediately see any way to view the performance of recoveries, as they're excluded from the lifetime default rate chart. Is there any way to see that information?
edit: X-d with Matthew - ok will await e-mail.
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rogedavi
Member of DD Central
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Likes: 129
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Post by rogedavi on Nov 28, 2019 11:19:31 GMT
The new stats page is a welcome addition. It looks very clear and provides a high level statistical summary of the loan book breakdown and its performance by cohort.
It gets a thumbs up from me.
I'm still deeply concerned however by the low cash balance within the shield and the rising default trend year on year.
The doubling of the "future income" looks like someone fudged the assumptions. Eagerly anticipating the explanation.
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keystone
Member of DD Central
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Post by keystone on Nov 28, 2019 12:28:21 GMT
Matthew could you please explain why the future income element of the shield has more than doubled? So I might have missed it as I have been away but when did the rates get slashed to 3.8 and 5.4%? Is this why future income has increased?
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n
Member of DD Central
Yet another Nick
Posts: 880
Likes: 461
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Post by n on Nov 28, 2019 13:28:44 GMT
Matthew could you please explain why the future income element of the shield has more than doubled? So I might have missed it as I have been away but when did the rates get slashed to 3.8 and 5.4%? Is this why future income has increased? Sly or a mistake? There was no mention of a rate change in last week's email.
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