alanh
Posts: 556
Likes: 560
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Post by alanh on Jan 16, 2020 16:31:53 GMT
wow - 5.6 in access?? I got a decent chunk done at 5.1 but didn't think it went above. It must have been a pretty short spike up to those levels. Looks like its harder going today.
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Post by paultw5 on Jan 16, 2020 16:42:30 GMT
Sorry for confusion, i wrote the plus in brackets in previous reply... (access was 5%, or queue for 5.1 like you said)
to confirm, it was the plus that i got 5.6 on..
Have edited above reply )-
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alanh
Posts: 556
Likes: 560
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Post by alanh on Jan 16, 2020 17:48:40 GMT
Ah. Thanks for clarifying. I was worried I was missing out on something.
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gg
Posts: 83
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Post by gg on Jan 19, 2020 11:54:28 GMT
As a direct result of the article in The Times we have withdrawn almost £100k from RateSetter. It was good whilst it lasted but we simply don’t want to take any significant risk with such a large sum.
Rates had dropped already for new money. The article in The Times has resulted in some funds being withdrawn so that those remaining will get higher rates for a while as old loans are resold. When that dries up, rates will fall again and it’s likely that the BofE will reduce rates again in the medium term. We’d rather give up £3k-ish per year than to be part of a corrupt newspaper’s games.
I can’t say that we’ll never reinvest in RS but whilst The Times has an agenda to spoil the social lending boom, we are out.
Good luck everybody.
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st182
Posts: 27
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Post by st182 on Jan 22, 2020 12:15:18 GMT
Well, Its not because of the article above but for personal reasons that I, too, am now out. I'll probably need the funds for a new venture within approx 12 months, so I've played safe and withdrawn my entire holding whilst the going is good. Prob not the best place to post this but don't think it warranted a new thread- just wanted to thank everyone on the RS board for all the help / shared information over the last 15 months, really really appreciate it, I learned a hell of a lot- good luck with your p2p people depending how things go you never know I could be back! Regards Dan.
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zlb
Member of DD Central
Posts: 1,412
Likes: 331
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Post by zlb on Jan 23, 2020 10:24:00 GMT
I don't understand humans. First they overreact by thinking RS has an excellent provision fund because they pay too much attention to a rather odd formula RS like to use (which always goes up even when the PF has fallen 40% in a year), then they overreact in the opposite direction by paying too much attention to a stupid article in the press which entirely disregards projected provision fund income. Meet in the middle people! The Times article is totally irresponsible IMV. Yes, RS's provision fund has been falling, but their loanbook has done better than other rivals recently (wholesale lending debacle notwithstanding). What might make it weaker is a press article driving away investors, driving up rates in the short term but reducing RS's ability to ever be profitable in the long term and/or contribute adequately to the PF. entirely agree - discussions about the factors which contribute toward platform stability should include media bias - as with anything else which the press choose to focus on...
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zlb
Member of DD Central
Posts: 1,412
Likes: 331
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Post by zlb on Jan 23, 2020 10:35:31 GMT
Do banks work like this? Their stability is reliant upon income that is yet to happen?
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aju
Member of DD Central
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Likes: 917
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Post by aju on Jan 23, 2020 10:46:18 GMT
Do banks work like this? Their stability is reliant upon income that is yet to happen? Not sure but one thing I do know is when I move money from P2P sites its not always going in the direction of another P2P site more likely going to a safe haven that I have with admittedly lower interest rates but has the comfort of being covered by FSCS. (ATM we move stuff back and forth to Mrs Aju's 1.5% Marcus account). Thing for me is that I am getting better rates on the 1Y and sometimes on Access probably as a result of the exodus from RS recently - I missed a few good ones over the last few days since our next relend stuff is not due until the 27th. I read the article and saw others nots on here that it was old news and to be honest felt it was perhaps a bit of the times drumming up something just because they could. I felt the Times was better than that but what does an old "middle ground lefty" like me know. Zopa is in a worse state, "customer experience wise" than RS I feel but I guess they have other issues of all hands to the build a new bank project.
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Post by propman on Jan 23, 2020 10:50:12 GMT
Do banks work like this? Their stability is reliant upon income that is yet to happen? It was worse than that as banks assumed loans were recoverable unless they had evidence to the contrary and so were not assuming a regular amount of bad debts from previously performing loans.
There are 2 issues here. Is the bank solvent (ie do they have the resources to pay there debts), this assumes income continues to be received as expected, then also have they sufficient liquidity (ie will the income arrive in time to meet the liabilities). THere is nothing wrong with using future income to meet these tests. The trouble arises when there is uncertainty on the timing of receipts. RS give us no information on when the future income is expected and so whether it will be sufficient to meet bad debts when due.
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zlb
Member of DD Central
Posts: 1,412
Likes: 331
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Post by zlb on Jan 23, 2020 11:15:13 GMT
As a direct result of the article in The Times we have withdrawn almost £100k from RateSetter. It was good whilst it lasted but we simply don’t want to take any significant risk with such a large sum. Rates had dropped already for new money. The article in The Times has resulted in some funds being withdrawn so that those remaining will get higher rates for a while as old loans are resold. When that dries up, rates will fall again and it’s likely that the BofE will reduce rates again in the medium term. We’d rather give up £3k-ish per year than to be part of a corrupt newspaper’s games. I can’t say that we’ll never reinvest in RS but whilst The Times has an agenda to spoil the social lending boom, we are out. Good luck everybody. Does the Times have this agenda? Do you have any insight on why they might?
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gg
Posts: 83
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Post by gg on Mar 19, 2020 20:04:54 GMT
Well, for a couple of months I though maybe I had acted in haste (by withdrawing almost £100k at a not insignificant cost).
Now, unless the government provides some guarantee for funds invested in p2p (similar to the FSCS guarantee), I fear the party is over. I’ve just asked for a final £3k to be withdrawn to my account. It may take a while.
Good luck to all. Keep your health and your well-being in these crazy times and you have the world; without them and no amount of money will stop you being a pauper.
gg
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