sd2
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Post by sd2 on Oct 23, 2019 21:08:45 GMT
There was 65 p2p!! To many, end of. That's the only problem. Once they are whittled down to around 15 (I am guessing) then we will see some stability. That won't stop new losers coming along unless by then FCA has set regulations such as a decent capital reserve before being allowed to open.
My loans are to
Assertz capital (greatly reduced)
Assertz exchange (pennies just after the 5%)
Unbolted (greatly reduced till they sort out the to**er)
Lending works (middling same asassertz capital. Not sure about them, something not right?)
Property partner (little bit more than assertz capital but getting nothing else since new charges)
Kufflink. Never had much in here to begin just wanted the £175 for putting in £500 but put a little more in there sub 20% LTV......how can you not?!
Ratesetter more in ratesetter than all the rest put together. Risk reward excellent mainly due to the mad 7.1% rolling market weekend.
I think I am very low risk but with good risk reward ratio. My main aim has always been to protect my capital and I think I am achieving that.........hopefully!
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dovap
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Post by dovap on Oct 23, 2019 22:13:29 GMT
yep seems what'll be left will be a much shorter list.
Still great news for those fans of 'action groups'
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Post by propman on Oct 24, 2019 9:20:25 GMT
zlb whilst the factors you list are all relevant, the biggest single one is "trusting what the borrower claims".
At one level, as has been pointed out to me by several platforms, not do so would be to treat the borrower unfairly, but I maintain far more could be done in terms of loan monitoring, and setting of loan covenants.
in what kind of way? like saying that they have professional architects who then can't build to fire regs? IMS who don't pick that up? How do these borrowers hoodwink platforms and not banks? IMS has several possible applicable meanings, which did you mean?
Many developers do not employ the architecht to project manage the development, specialist project managers are cheaper and so can do more of the work, not to mention being much more focussed on cost and budget. many building companies have come unstuck on fire regs. Buildings frequently fail as the appropriate fire protection is installed then pipes etc are put through them without the necessary rectification. Also much of the protection is in the voids and so an un-scrupulous contractor may cut corners on what is not visible (although anyone worth their salt will subsequently pick it up in final inspection as it is a known issue).
If the issue is at the planning stage, fire officers differ on their requirements even in the same borough!
There are banks that give development loans, even ones only with recourse to the building asset. monitoring is difficult as the key risk is that the asset is not sold quickly at the hoped for price (or is in a good enough state to be refinanced) and that construction is not completed on time and on budget. Loans typically roll up interest as the projects are not cash generative until the end. Controls exist such as requiring sign off from a QS prior to drawdown to ensure the work has been done. However all building projects have unexpected expenditure and contingencies to cover them. As a result it is notoriously difficult to track against original budgets. It comes largely down to the expertise of the developer. When many P2P companies were starting up these loans were only available in limited amounts from a minority of providers to the most established developers. This was why they grew so fast. There is now more competition that has presumably removed the better opportunities and reduced margins. As such the rates obtained must be to lower qualified applicants.
As I have said throughout, these are very risky.
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zlb
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Post by zlb on Oct 24, 2019 9:46:12 GMT
Independent monitoring surveyor, propman. Readers don't know who anyone is on here, nor their experience, so if someone says it's very risky without saying who they are and what their expertise is, a reader doesn't know what to make of that. Your post detail however, now gives a reader indication of your expertise. Thanks! |
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bababill
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Post by bababill on Oct 29, 2019 6:15:08 GMT
I would strongly suggest to not mention individual platforms supposed to run into troubles; at least not without good evidence. Bad rumours could cause unnecessary panic selling, if not damage to the platform. Let's take emotion out of it and rely purely on the numbers. A ratio between the value of new loans originated in 2019 and the value of loans 180 days past their due date. For the sake of this discussion let us leave MT out of the equation and concentrate on the other candidates.
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corto
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one-syllabistic
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Post by corto on Oct 29, 2019 8:56:41 GMT
I would strongly suggest to not mention individual platforms supposed to run into troubles; at least not without good evidence. Bad rumours could cause unnecessary panic selling, if not damage to the platform. Let's take emotion out of it and rely purely on the numbers. A ratio between the value of new loans originated in 2019 and the value of loans 180 days past their due date. For the sake of this discussion let us leave MT out of the equation and concentrate on the other candidates. Fine with me.
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corto
Member of DD Central
one-syllabistic
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Post by corto on Oct 29, 2019 9:01:58 GMT
PS: If you want to see panic *buying* at work check the EUA share price.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Nov 6, 2019 12:19:00 GMT
I'm starting to think the whole business model is just the sequel to subprime 2008
i.e. lending to substandard borrowers (the ones that cant borrow from banks), packaging up the risk and selling it on to investors... then the investors engage in a race to the bottom hunting yield. the spread return doesn't match the inherent risk anymore. and then it blows up. the old saying Too Good to be True probably applies.
at least this time there will be wider contagion. Have you missed a "not" out or did you really mean this?
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rogedavi
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Post by rogedavi on Nov 6, 2019 13:32:15 GMT
Missed a "not". And by wider contagion I mean impact to the wider economy - banks/equity markets etc, rather than contagion impacting other p2p companies.
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ceejay
Posts: 975
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Post by ceejay on Jun 15, 2020 20:51:48 GMT
Missed a "not". And by wider contagion I mean impact to the wider economy - banks/equity markets etc, rather than contagion impacting other p2p companies. On the day that Growth Street have effectively closed their doors (technically, declared a Resolution Event which means the run down of the loan book), I couldn't resist reviving this old thread. The last post's prescient reference to "contagion" notwithstanding, I wonder what the panel now thinks about the long term future of this market and the platforms that we so love to hate...
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Post by carol167 on Jun 17, 2020 14:25:38 GMT
I'm afraid I just don't see a future in P-2-P now and am winding down all my investments in p2p as and when I can. It's cash and increasing my stock market exposure for me from now on.
But I'm lucky in that I no longer *need* to generate much income now to live on anymore (p2p has been good and a needed source between giving up work in 2012 and now) and can just slowly eat into my capital to bridge the gap between now and pension/stock market withdrawal in 10 years time.
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agent69
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Post by agent69 on Jun 17, 2020 14:51:47 GMT
I'm afraid I just don't see a future in P-2-P now and am winding down all my investments in p2p as and when I can. It's cash and increasing my stock market exposure for me from now on.
But I'm lucky in that I no longer *need* to generate much income now to live on anymore (p2p has been good and a needed source between giving up work in 2012 and now) and can just slowly eat into my capital to bridge the gap between now and pension/stock market withdrawal in 10 years time.
Out of the frying pan ..... ?
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Post by df on Jun 17, 2020 14:55:25 GMT
Missed a "not". And by wider contagion I mean impact to the wider economy - banks/equity markets etc, rather than contagion impacting other p2p companies. On the day that Growth Street have effectively closed their doors (technically, declared a Resolution Event which means the run down of the loan book), I couldn't resist reviving this old thread. The last post's prescient reference to "contagion" notwithstanding, I wonder what the panel now thinks about the long term future of this market and the platforms that we so love to hate... I think a small number of p2p platforms will probably survive, but can’t foresee any growth of this market.
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Post by peertopier on Jun 17, 2020 14:59:48 GMT
I'm afraid I just don't see a future in P-2-P now and am winding down all my investments in p2p as and when I can. It's cash and increasing my stock market exposure for me from now on.
But I'm lucky in that I no longer *need* to generate much income now to live on anymore (p2p has been good and a needed source between giving up work in 2012 and now) and can just slowly eat into my capital to bridge the gap between now and pension/stock market withdrawal in 10 years time.
Out of the frying pan ..... ? At least the risks are transparent with the stock market. I've done a similar thing, moving p2p to a mix of funds including some gilts and bonds. I'm working on the principal that over 10 years we'll see something positive from it, even if the next two or three years are bumpy.
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Post by carol167 on Jun 17, 2020 15:50:28 GMT
I'm afraid I just don't see a future in P-2-P now and am winding down all my investments in p2p as and when I can. It's cash and increasing my stock market exposure for me from now on.
But I'm lucky in that I no longer *need* to generate much income now to live on anymore (p2p has been good and a needed source between giving up work in 2012 and now) and can just slowly eat into my capital to bridge the gap between now and pension/stock market withdrawal in 10 years time.
Out of the frying pan ..... ? Hopefully not. Been doing passive indexing for about 5 years, slowly increasing exposure during that time which is now about 20% of capital. Aim to get nearer 60 to 70% by the end of the next 10 years. Happy so far with S&S - wish I'd done more sooner but also happy with the divergence into p2p during for the last 8 or so years. Always on the lookout for new opportunities but the need is decreasing to stay high risk.
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