rogedavi
Member of DD Central
Posts: 100 
Likes: 129
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Post by rogedavi on Nov 28, 2019 17:24:16 GMT
Interested to gather peoples opinions on next steps with LW following todays announcements
- 0.4% interest haircut on existing loan portfolio on average (1.1% on 2019 cohort)
- 1.1% reduction in new/re-investment interest for the Growth (5yr) product
- stronger shield (as that interest will be diverted)
- removal of default insurance (was deemed uneconomical)
- no exit fee before Jan 2020
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morris
Member of DD Central
Posts: 272
Likes: 155
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Post by morris on Nov 28, 2019 17:29:47 GMT
I ticked run off naturally, although I was already reducing that because of over exposure.
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Post by carol167 on Nov 28, 2019 17:30:39 GMT
I ticked run off naturally, although I was already reducing that because of over exposure.
Likewise.
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Post by df on Nov 28, 2019 18:25:38 GMT
PF (Shield) and consequently platform sustainability is the most important factor for me. New rates are still within my margin and my exposure to LW is about right. So I'm going to keep it running as before (no new money, no withdrawals and keep reinvestments on).
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Post by scottdt on Nov 28, 2019 18:40:00 GMT
PF (Shield) and consequently platform sustainability is the most important factor for me. New rates are still within my margin and my exposure to LW is about right. So I'm going to keep it running as before (no new money, no withdrawals and keep reinvestments on). Matches my view
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Post by jono75 on Nov 28, 2019 19:01:40 GMT
Earlier today I was disappointed with the shield reduction and rate reduction as a prospective lender. However, after reading the information and digesting it, especially the new shield info on the website, I feel the changes are for the better and will provide a more even platform. Essentially it shares bad luck on investments (there will always be those) more evenly and reduces risk of the shield getting depleted and capital losses.
I am more inclined to invest now when I have funds ready, they are erring on the side of caution more in the uncertain world we live in right now, which I think is a good thing and is a good balance.
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Post by stevexxx on Nov 28, 2019 19:05:04 GMT
I'm turning off re-investment, I think it just became high risk with large default rates, I have less risky areas of investment I want to head into... p2p is becoming higher risk overall as shareholders seem to get paid out first in the case of platforms going bust. I've noticed a change in tone from LW and I don't think they have been as informative as they could have been about the depletion of the PF.. I shall continue to keep an eye on things but for now its a slow withdraw..
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Post by martinde21 on Nov 28, 2019 19:24:37 GMT
Hi have just posted on this elsewhere. I will maintain my investment level and reinvest, but continue to seek a more diversified investment portfolio with an eye on tracker funds geared towards 4%-5% yield and some capital growth over 5 years. The General Election result will clearly be key and the next ISA window ...
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Post by Matthew on Nov 28, 2019 19:46:33 GMT
I'm turning off re-investment, I think it just became high risk with large default rates, I have less risky areas of investment I want to head into... p2p is becoming higher risk overall as shareholders seem to get paid out first in the case of platforms going bust. I've noticed a change in tone from LW and I don't think they have been as informative as they could have been about the depletion of the PF.. I shall continue to keep an eye on things but for now its a slow withdraw.. Thanks for the feedback stevexxxI can understand why you say we could have been more informative and I think that's fair. Recently it has been more difficult as we obviously couldn't announce these changes before we announced to all investors at the same time. Behind the scenes we've been working with focus groups, advisors, our Board and the regulator to ensure we make changes which are sustainable for the long time and ultimately are fair for customers. I think we've managed to get the right balance and I genuinely believe the changes are for the better. Clearly any downwards movement on rates is not welcomed, but if the net yield still helps you achieve your investing goals then I think it should retain a sensible allocation from any investor's portfolio. Thanks
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Post by martinde21 on Nov 28, 2019 20:32:00 GMT
It is good Matthew is being active on the forum. Hats off.
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alanh
Posts: 556
Likes: 560
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Post by alanh on Nov 29, 2019 9:32:55 GMT
I am out - for now at least. I think the proposed changes are a good idea and I will certainly consider going back in at some point. My main concern is whether the changes are sufficient. The shield cash has been dropping, on average, at £150k per month for the past 8 months. The reduction in interest rates is around 1.1%, so on a loan portfolio of £92m that equates to £1.012m or about £85k per month. If all of this £85k is diverted to the shield then the shield cash would still be dropping by £65k per month all else being equal.
What I particularly don't like is the fact that the statistics are now only being updated quarterly instead of monthly - this is really not something that lenders want to see. Without any up to date information on the shield I am erring on the side of caution and exiting completely. I am going to need to see concrete improvements in the shield cash before going back in.
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Post by jono75 on Nov 29, 2019 9:42:05 GMT
I am out - for now at least. I think the proposed changes are a good idea and I will certainly consider going back in at some point. My main concern is whether the changes are sufficient. The shield cash has been dropping, on average, at £150k per month for the past 8 months. The reduction in interest rates is around 1.1%, so on a loan portfolio of £92m that equates to £1.012m or about £85k per month. If all of this £85k is diverted to the shield then the shield cash would still be dropping by £65k per month all else being equal. What I particularly don't like is the fact that the statistics are now only being updated quarterly instead of monthly - this is really not something that lenders want to see. Without any up to date information on the shield I am erring on the side of caution and exiting completely. I am going to need to see concrete improvements in the shield cash before going back in. I agree with you on the statistics updates, once a month would be much better. Is this something that could be re-introduced Matthew?
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dovap
Member of DD Central
Posts: 467
Likes: 410
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Post by dovap on Nov 29, 2019 10:01:44 GMT
seems waiting over 30 working days to get invested a few weeks back was a waste of time & money
ho hum - suppose at least it's free to withdraw when they sort that out
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Ukmikk
Member of DD Central
Posts: 452
Likes: 306
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Post by Ukmikk on Nov 29, 2019 10:20:00 GMT
I am out - for now at least. I think the proposed changes are a good idea and I will certainly consider going back in at some point. My main concern is whether the changes are sufficient. The shield cash has been dropping, on average, at £150k per month for the past 8 months. The reduction in interest rates is around 1.1%, so on a loan portfolio of £92m that equates to £1.012m or about £85k per month. If all of this £85k is diverted to the shield then the shield cash would still be dropping by £65k per month all else being equal. What I particularly don't like is the fact that the statistics are now only being updated quarterly instead of monthly - this is really not something that lenders want to see. Without any up to date information on the shield I am erring on the side of caution and exiting completely. I am going to need to see concrete improvements in the shield cash before going back in. These are very good points, and I share the concerns around moving to quarterly updates, at a time when clearly more regular updates on performance would be the preference. Matthew can you offer any justification for this? I broadly support the changes being implemented but not any reduction in transparency.
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jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
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Post by jlend on Nov 29, 2019 10:29:50 GMT
I am out - for now at least. I think the proposed changes are a good idea and I will certainly consider going back in at some point. My main concern is whether the changes are sufficient. The shield cash has been dropping, on average, at £150k per month for the past 8 months. The reduction in interest rates is around 1.1%, so on a loan portfolio of £92m that equates to £1.012m or about £85k per month. If all of this £85k is diverted to the shield then the shield cash would still be dropping by £65k per month all else being equal. What I particularly don't like is the fact that the statistics are now only being updated quarterly instead of monthly - this is really not something that lenders want to see. Without any up to date information on the shield I am erring on the side of caution and exiting completely. I am going to need to see concrete improvements in the shield cash before going back in. These are very good points, and I share the concerns around moving to quarterly updates, at a time when clearly more regular updates on performance would be the preference. Matthew can you offer any justification for this? I broadly support the changes being implemented but not any reduction in transparency. I think you also need to factor in that LW are putting the majority of their future interest rate margin on existing loans into the PF. On a 14% Apr loan they state their margin is 2.5% made up of upfront and monthly contributions. I think you need to add a proportion of this to the reduction in interest rates. My understanding is quarterly updates is what the FCA have asked platforms to do. RS revise their estimates on a quarterly basis for example.
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