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Post by Deleted on Oct 28, 2019 16:46:17 GMT
Will I ever get 6% again in max or 5 year? If not do I go increase my exposure to LW (risky) or accept 5% on max. These are not trivial issues... I doubt it, or at least it will be a while coming ie not before April and then the ISA season starts again. I don't think 5% is sufficient for the risk, but that depends on your attitude to risk and how much you have invested and where. I would rather have 1.45% in an FSCS account than get 5% in RS. I don't have any experience of LW but if it is more risky as you say, I don't think now is the time to take on more risk, but again depends on your attitude to risk...
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Post by carol167 on Oct 28, 2019 16:51:57 GMT
Will I ever get 6% again in max or 5 year? If not do I go increase my exposure to LW (risky) or accept 5% on max. These are not trivial issues...
Increasing ones exposure on LW wiould depend on whether it was already at a self imposed maximum investment limit. I'm already slightly over mine :-( If you're not then perhaps switching funds from RS to LW might be an idea while you can. It wouldn't surprise me if LW also reduce rates in the short to medium term. It's hard to see how they can justify 6.5% when many seem to be reducing theirs.
In the meantime I've turned off reinvest on RS and will be withdrawing surplus until the picture becomes a little clearer. I was happy with 6%. Not so happy with less. I'll reassess that position in the new year.
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Post by df on Oct 28, 2019 17:43:50 GMT
Will I ever get 6% again in max or 5 year? If not do I go increase my exposure to LW (risky) or accept 5% on max. These are not trivial issues... I doubt it, or at least it will be a while coming ie not before April and then the ISA season starts again. I don't think 5% is sufficient for the risk, but that depends on your attitude to risk and how much you have invested and where. I would rather have 1.45% in an FSCS account than get 5% in RS. I don't have any experience of LW but if it is more risky as you say, I don't think now is the time to take on more risk, but again depends on your attitude to risk... I'm not sure if LW is any riskier than RS. RS has a larger loan book and has been running for longer than LW, but it doesn't necessarily mean that the risk is lower (thinking of FC which is currently experiencing a mass investor exodus). For me personally 5% is a bottom line for p2p risk. If the rate is as low as 5% I need PF attached to the account and easy fee free access. Otherwise I prefer to keep money in FSCS. I was lucky to grab a short lived Al Rayan offer of 1.6% (variable), if that drops then Marcus 1.45% will do fine. New RS products don't fit into my strategy. My attitude to risk might change in future, but at the moment my RS returns go back to the banks.
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Post by propman on Oct 28, 2019 18:04:08 GMT
the issue is that LW's PF seems less well funded as well as the increased platform risk of being smaller.
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Post by df on Oct 28, 2019 18:59:45 GMT
Will I ever get 6% again in max or 5 year? If not do I go increase my exposure to LW (risky) or accept 5% on max. These are not trivial issues...
Increasing ones exposure on LW wiould depend on whether it was already at a self imposed maximum investment limit. I'm already slightly over mine :-( If you're not then perhaps switching funds from RS to LW might be an idea while you can. It wouldn't surprise me if LW also reduce rates in the short to medium term. It's hard to see how they can justify 6.5% when many seem to be reducing theirs.
In the meantime I've turned off reinvest on RS and will be withdrawing surplus until the picture becomes a little clearer. I was happy with 6%. Not so happy with less. I'll reassess that position in the new year.
With p2p investments reassessing position is a necessity as goal posts are constantly moving. A while ago, can't remember when, LW rep posted a rough breakdown of funds' distribution. Can't remember the figures, but the proportions made sense. It was soon after they changed from 4.5%-6% to 5%-6.5%. I think with LW our return will depend on supply of borrowers. I'm not sure if lenders' rate reduction is a trend at the moment. All other platforms I'm in didn't reduce rates for quite sometime.
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benaj
Member of DD Central
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Post by benaj on Oct 28, 2019 19:21:21 GMT
With these new products and rates, I have adjusted my level of investment on RS, a major reduction compared to last 4 moths. I have a good mix of Access and 5Y, 20% access : 80% 5Y, and a regular "monthly" top up.
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Post by bernythedolt on Oct 28, 2019 20:49:59 GMT
I used to enjoy making decisions on a daily basis as to how I would manage my Ratesetter investments and felt pleased when I felt I had offered money at the "right" rate and it was taken up. All this fun has disappeared. I'm frustrated and disappointed.
You're not alone... p2pindependentforum.com/thread/15758/ratesetter-boring-zzzzzz
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Post by df on Oct 28, 2019 21:43:22 GMT
the issue is that LW's PF seems less well funded as well as the increased platform risk of being smaller. I recall RS's PF sustainability was also questioned. Somehow both PF's are working so far, nobody has lost any capital on both platforms yet. I'm aware of the theory, but in practice I didn't see any evidence of correlation between the size and risk.
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sl75
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Post by sl75 on Oct 29, 2019 9:11:20 GMT
the issue is that LW's PF seems less well funded as well as the increased platform risk of being smaller. I take it that "LW" no longer means "Lendy Wealth"....
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Post by propman on Oct 29, 2019 9:36:19 GMT
the issue is that LW's PF seems less well funded as well as the increased platform risk of being smaller. I recall RS's PF sustainability was also questioned. Somehow both PF's are working so far, nobody has lost any capital on both platforms yet. I'm aware of the theory, but in practice I didn't see any evidence of correlation between the size and risk. I don't think LW would have been bailed out in the way that RS was when they ran into their car & wholesale lending problems as the brand is not very valuable and the investors have less at stake so it is an easier decision for shareholders to accept the loss if they get into trouble.
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r00lish67
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Post by r00lish67 on Oct 29, 2019 9:47:13 GMT
the issue is that LW's PF seems less well funded as well as the increased platform risk of being smaller. I recall RS's PF sustainability was also questioned. Somehow both PF's are working so far, nobody has lost any capital on both platforms yet. I'm aware of the theory, but in practice I didn't see any evidence of correlation between the size and risk. This line of argument makes no sense. Just because an investment has worked to date does not make it fundamentally equivalent to other investments. The fact of the matter in this case is that LW's PF cash has fallen by 65% in 8 months whilst RS's has not. This has been driven by some very badly performing loans. They have acknowledged this directly ..quote: "We are very aware that the performance of 2016-18 vintages has weighed on the Shield coverage recently, leading to a reduction in cash held over the last 12 months. We are working on a longer term solution to ensure that the Shield continues to maintain sufficient liquidity going forward, and more details will be provided on this imminently." For anyone still with LW, the fact that they're still engaging here and acknowledging/addressing the issue should provide some comfort, but don't pretend to yourself that they're doing equally as well as other platforms.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Oct 29, 2019 14:25:21 GMT
Ditto no emails here. The 1yr spiked today momentarily. I had a small match at 5.5% Me too. The fun didn't last. Four orders all repaid early today after one week.
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aju
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Post by aju on Oct 29, 2019 15:31:37 GMT
The fun didn't last. Four orders all repaid early today after one week. yeah I've had one paid back today after 6 days, at least I made 3p . Mrs Aju had the exact same loan slightly smaller contract but again made 3p.
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Post by Deleted on Oct 29, 2019 15:31:43 GMT
The fun didn't last. Four orders all repaid early today after one week. Yes and the rate spiked again today to 5.4 and some 5.5 I think.
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cb25
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Post by cb25 on Oct 29, 2019 16:33:26 GMT
The fun didn't last. Four orders all repaid early today after one week. Yes and the rate spiked again today to 5.4 and some 5.5 I think. Yes, I got a match at 5.5% in the 1Yr today
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