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Post by Ton ⓉⓞⓃ on Oct 12, 2019 10:06:14 GMT
Four days ago I received a text message from ZOPA correctly reminding me that I've money not earning interest, and supplying a link to the site. This is my first contact with them by text.
For several years Z used(?) to do a pre-Christmas campaign to get Lenders into the market, so this makes sense. I've about 10k in total in Z, I've switched off auto-lending and have the money piling up in Holding, either to pull out for a holiday/new heating system or put into an IFISA if unused
Did we have a promotion to encourage Lenders last year?
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Post by dan1 on Oct 12, 2019 10:58:49 GMT
Four days ago I received a text message from ZOPA correctly reminding me that I've money not earning interest, and supplying a link to the site. This is my first contact with them by text.
For several years Z used(?) to do a pre-Christmas campaign to get Lenders into the market, so this makes sense. I've about 10k in total in Z, I've switched off auto-lending and have the money piling up in Holding, either to pull out for a holiday/new heating system or put into an IFISA if unused
Did we have a promotion to encourage Lenders last year?
Tiered cashback on ISA transfers iirc. Incentives such as these maybe the only way to make any money from Zopa investments these days. My core lump sum deposit made Aug 18 has earned less in interest than defaults to date (no further deposits or reinvestment, just withdrawing repayments). I'm hopeful for a modest return in time.
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aju
Member of DD Central
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Post by aju on Oct 12, 2019 12:09:46 GMT
Four days ago I received a text message from ZOPA correctly reminding me that I've money not earning interest, and supplying a link to the site. This is my first contact with them by text.
For several years Z used(?) to do a pre-Christmas campaign to get Lenders into the market, so this makes sense. I've about 10k in total in Z, I've switched off auto-lending and have the money piling up in Holding, either to pull out for a holiday/new heating system or put into an IFISA if unused
Did we have a promotion to encourage Lenders last year?
Tiered cashback on ISA transfers iirc. Incentives such as these maybe the only way to make any money from Zopa investments these days. My core lump sum deposit made Aug 18 has earned less in interest than defaults to date (no further deposits or reinvestment, just withdrawing repayments). I'm hopeful for a modest return in time. Hmm! I'm not sure that removing repayments will make things better. Surely as the defaults materialise surely the re-investments start to make up for the defaults. My situation is different but in our ISA's we removed a large sum over the early part of the year and then put relending back on. Despite only lending in £10 blocks due to the relend values - approx 100 loans every 2 months or so - its hit and miss that monthly defaults of late don't eat away all the profit levels. I'm going to actually leave it until the next fin year to see if things stabilise better but to be honest things are not looking that promising. At present we have approx 80-90% of interest lost one month down to 40-50% another. Not looked this month as yet. I sometimes wonder if Zopa saw the writing on the wall with SG and it was not viable long term so they pulled it. I've still got me fingers firmly crossed whilst also being a realist and thinking its getting closer to a Bail - Despite our cash out we still have some 25% SG cover in Invest side. If myself and Mrs aju join everything together as a single fund then we are still in 4.5-5% XIRR territory despite this ISA side oddity.
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trium
Member of DD Central
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Post by trium on Oct 12, 2019 14:45:25 GMT
Hmm! I'm not sure that removing repayments will make things better. Surely as the defaults materialise surely the re-investments start to make up for the defaults. No, re-investments simply expose more funds to more risk producing more defaults further down the line. If indeed the reinvested money does produce higher (net of bad debt) returns that is due to the quality of the loans purchased with that money (just as much as if it were new money). Current bad debt rates are independent of that - returns on future investment (including re-investment) cannot be said to enhance or to impair current rates.
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Post by Deleted on Oct 12, 2019 16:04:32 GMT
Hmm! I'm not sure that removing repayments will make things better. Surely as the defaults materialise surely the re-investments start to make up for the defaults. No, re-investments simply expose more funds to more risk producing more defaults further down the line. If indeed the reinvested money does produce higher (net of bad debt) returns that is due to the quality of the loans purchased with that money (just as much as if it were new money). Current bad debt rates are independent of that - returns on future investment (including re-investment) cannot be said to enhance or to impair current rates. Agreed. For those that have reinvestment active in Zopa, the fact that there are no defaults in the first 4 months (by Zopa's design) means that default stats look a little better (although it's only smoke and mirrors).
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Post by dan1 on Oct 12, 2019 20:07:58 GMT
Tiered cashback on ISA transfers iirc. Incentives such as these maybe the only way to make any money from Zopa investments these days. My core lump sum deposit made Aug 18 has earned less in interest than defaults to date (no further deposits or reinvestment, just withdrawing repayments). I'm hopeful for a modest return in time. Hmm! I'm not sure that removing repayments will make things better. Surely as the defaults materialise surely the re-investments start to make up for the defaults. My situation is different but in our ISA's we removed a large sum over the early part of the year and then put relending back on. Despite only lending in £10 blocks due to the relend values - approx 100 loans every 2 months or so - its hit and miss that monthly defaults of late don't eat away all the profit levels. I'm going to actually leave it until the next fin year to see if things stabilise better but to be honest things are not looking that promising. At present we have approx 80-90% of interest lost one month down to 40-50% another. Not looked this month as yet. I sometimes wonder if Zopa saw the writing on the wall with SG and it was not viable long term so they pulled it. I've still got me fingers firmly crossed whilst also being a realist and thinking its getting closer to a Bail - Despite our cash out we still have some 25% SG cover in Invest side. If myself and Mrs aju join everything together as a single fund then we are still in 4.5-5% XIRR territory despite this ISA side oddity. All things being equal (primarily interest and default rates) whether you reinvest or withdraw shouldn't make any difference to the return when all the loans have completed. What I'm effectively seeing is the IRR in a very small cohort of loans entered into in Aug 2018. Now, I'd initially expect quite good positive return up until 4 months, then a hit as the loans that were never going to pay back default, followed by a more gradual saw-tooth (rises with interest payments and sudden drops with defaults) but, what I wouldn't expect is at 14 months in for the return to go negative. I still expect returns to be positive but most likely nowhere near to the predicted return when the loans were taken on. As I say, just a very small sample but interesting (to me!) nonetheless.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Oct 13, 2019 10:41:09 GMT
Zopa had better not start sending me texts, having recently forced me down the OTP route  |
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aju
Member of DD Central
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Post by aju on Oct 13, 2019 11:26:58 GMT
Zopa had better not start sending me texts, having recently forced me down the OTP route Not sure we have been offered OTP on our desktops I never do that on my mobiles, don't trust em sadly. What's really annoying though with Zopa is that if you don't logout properly manually after using multiple screens then we are next asked to login and are thrown out immediately back to login again effectively making us receive two texts and login twice. It's sometimes so bad that I have to clear the text stream to save space on the mobile - roll on being able to register my PC as a secure system. Zopa says no one is complaining after I sent them examples etc and they never came back after saying they would look into the issue. I have to try and make sure I logout correctly rather than letting it time out but I get distracted sometimes.  Apparently its also because we use the same PC for two independant accounts!, I say you just can't get good web design as we don't get the same issue with RS but then they don't use 2 Factor security.
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Apparently its also because we use the same PC for two independant accounts!, I say you just can't get good web design as we don't get the same issue with RS but then they don't use 2 Factor security.