|
|
Post by propman on Nov 28, 2019 16:09:38 GMT
Matthew could you please explain why the future income element of the shield has more than doubled? Hi alanh Email 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 There seems to be a significant reduction in the info provided. This means that direct comparisons can no longer be performed. In addition, the Shield usage is no longer shown, while I thought the initial estimate of expected defaults was now a requirement. Personally while the graphs are pretty C- from me on current Shield Stats.
|
|
|
|
Post by gravitykillz on Dec 24, 2019 15:51:09 GMT
If you withdraw prior to the interest payment date you do not get any interest. Is that correct ?
|
|
|
|
Post by gravitykillz on Dec 24, 2019 16:01:48 GMT
Wondering if I should return to lending works or put more in at ratesetter and the only thing that annoyed me last time round was no interest when you withdrew prior to interest payment date. Whereas ratesetter access pays interest regardless of when you withdraw and 4.3% is also possible if patient.
|
|
benaj
Member of DD Central
N/A
Posts: 5,591 
Likes: 1,735
|
Post by benaj on Dec 24, 2019 16:48:27 GMT
If you withdraw prior to the interest payment date you do not get any interest. Is that correct ? Lending works is a "stable" platform, perfect for those preferring almost 0 account maintenance. Withdraw money from the wallet is free. Selling loans allow investor to access the fund quickly by forgoing accrued interest. If you sell a loan after repayment date but the borrower hasn't made a repayment, you would get capital back only, plus you may have to pay a fee for selling loan from the growth market.
|
|
alanh
Posts: 556
Likes: 560
|
Post by alanh on Feb 14, 2020 12:36:16 GMT
I see the statistics page has been updated. The cash in the shield has more or less completely run out, down to only £75k from £400k at the end of November and £1.6m in April 2019. Whatever changes they have made to the rates/penalties/shortfalls etc seem to have had no effect at all on the rate at which the shield is being depleted. Give it another few weeks and it will be gone. Then what?
|
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on Feb 14, 2020 12:42:20 GMT
Give it another few weeks and it will be gone. Then what? I sold out in full fee free back in December as it was clear the way the wind was blowing. If the shield goes to 0, then interest rates will be cut further - folks need to ask themselves are they comfortable lending at those potentially even lower rates with a provision fund that is essentially depleted. Feels like another haircut is going to be needed. Very pleased I got out when I did.
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Feb 14, 2020 12:55:21 GMT
I see the statistics page has been updated. The cash in the shield has more or less completely run out, down to only £75k from £400k at the end of November and £1.6m in April 2019. Whatever changes they have made to the rates/penalties/shortfalls etc seem to have had no effect at all on the rate at which the shield is being depleted. Give it another few weeks and it will be gone. Then what? There is no plan to build up a large cash balance in the shield ever again. They are using the monthly repayments to cover shortfalls instead. "The Shield future income, which is required to cover expected losses, has remained relatively stable since the last update at £5,443,815 (£5,378,200 at Oct-19 month-end) which reflects the stable performance of the portfolio and consequently the stable expected annual investor returns.
The Shield cash balance decreased from £412,131 to £75,095 as we move into the new Lending Works Shield model, which is funded primarily via ongoing net interest margin earned on the portfolio rather than via upfront contributions. We would like to remind investors that the Shield cash balance is the actual amount of cash currently held by Lending Works Trustee Limited, but this balance is topped up each day as loan repayments are made by borrowers. Due to the variable nature of the retail investor interest rates, we manage the cash balance to ensure it always has an adequate balance to fulfil its function, which it continues to do in line with the Lending Works Shield policy.
Our credit risk models are continuously monitored and improved to ensure that the Shield future income covers the expected future losses of the portfolio. As a result, the Shield cash balance should no longer be a key risk metric when analysing the performance of your investment."
|
|
macq
Member of DD Central
Posts: 1,934
Likes: 1,199
|
Post by macq on Feb 14, 2020 13:06:25 GMT
I see the statistics page has been updated. The cash in the shield has more or less completely run out, down to only £75k from £400k at the end of November and £1.6m in April 2019. Whatever changes they have made to the rates/penalties/shortfalls etc seem to have had no effect at all on the rate at which the shield is being depleted. Give it another few weeks and it will be gone. Then what? There is no plan to build up a large cash balance in the shield ever again. They are using the monthly repayments to cover shortfalls instead. "The Shield future income, which is required to cover expected losses, has remained relatively stable since the last update at £5,443,815 (£5,378,200 at Oct-19 month-end) which reflects the stable performance of the portfolio and consequently the stable expected annual investor returns.
The Shield cash balance decreased from £412,131 to £75,095 as we move into the new Lending Works Shield model, which is funded primarily via ongoing net interest margin earned on the portfolio rather than via upfront contributions. We would like to remind investors that the Shield cash balance is the actual amount of cash currently held by Lending Works Trustee Limited, but this balance is topped up each day as loan repayments are made by borrowers. Due to the variable nature of the retail investor interest rates, we manage the cash balance to ensure it always has an adequate balance to fulfil its function, which it continues to do in line with the Lending Works Shield policy.
Our credit risk models are continuously monitored and improved to ensure that the Shield future income covers the expected future losses of the portfolio. As a result, the Shield cash balance should no longer be a key risk metric when analysing the performance of your investment."Whether people are reassured by their explanation and the Jan update in blogs is for me part of the problem.I can understand making a comment of what they hope under a best/worst case scenario but with lines like "to ensure it always has an adequate balance..............." and "to ensure that the future income covers the expected future losses.............." sounds more like a guarantee then a promise which i'm not sure they can make? unless they mean under the very worst case possible they would take capital to add to the provision fund?
|
|
alanh
Posts: 556
Likes: 560
|
Post by alanh on Feb 14, 2020 14:22:15 GMT
I see the statistics page has been updated. The cash in the shield has more or less completely run out, down to only £75k from £400k at the end of November and £1.6m in April 2019. Whatever changes they have made to the rates/penalties/shortfalls etc seem to have had no effect at all on the rate at which the shield is being depleted. Give it another few weeks and it will be gone. Then what? There is no plan to build up a large cash balance in the shield ever again. They are using the monthly repayments to cover shortfalls instead. "The Shield future income, which is required to cover expected losses, has remained relatively stable since the last update at £5,443,815 (£5,378,200 at Oct-19 month-end) which reflects the stable performance of the portfolio and consequently the stable expected annual investor returns.
The Shield cash balance decreased from £412,131 to £75,095 as we move into the new Lending Works Shield model, which is funded primarily via ongoing net interest margin earned on the portfolio rather than via upfront contributions. We would like to remind investors that the Shield cash balance is the actual amount of cash currently held by Lending Works Trustee Limited, but this balance is topped up each day as loan repayments are made by borrowers. Due to the variable nature of the retail investor interest rates, we manage the cash balance to ensure it always has an adequate balance to fulfil its function, which it continues to do in line with the Lending Works Shield policy.
Our credit risk models are continuously monitored and improved to ensure that the Shield future income covers the expected future losses of the portfolio. As a result, the Shield cash balance should no longer be a key risk metric when analysing the performance of your investment."Good luck with that
|
|
|
|
Post by jono75 on Feb 14, 2020 16:04:24 GMT
That's it for me, I've cashed out, well requested. Still over £200 in unsellable loans that I got in December as a new investor. I thought that was against he FCA rules?
In all, made £7 on £2k in just under two months. I'll be keeping my eye on what happens with the now.
Should I complain about my stuck loans, the bulk of which is in one 8 month late one, that is still repaying apparently?
|
|
|
|
Post by gravitykillz on Feb 14, 2020 16:22:29 GMT
Dump your cash in assetz 30 day account.
|
|
