Post by befuddled on Feb 3, 2020 14:42:01 GMT
From LW...
So investor's interest is being diverted to prop up shield, and at some point "over the course of the year" the diverted interest will be replenished to investors accounts.
So LW, as a struggling company, are commiting to essentially paying double interest for second part of year, using the same basic financial model that got themselves in this pickle
in the first place.
There would seem to be an element of money missing from the equation, where will the extra money come from to provide 8-9% to build average back to 4.5% for those brave enough to stay...
....the 5% leaving penalty has double benefit for LW, boosts the shield and makes it unattractive to leave...., time will tell if LW are able to pull if off....
Thank you for getting in contact.
Your interest rates are calculated on a lifetime basis, and we have calculated this as the return you will receive if you hold the investment for the life of the loan chunks in your portfolio. At any given time, though, we may have to adjust the rates investors receive by more or less, to ensure that the Lending Works Shield receives enough interest to cover the loan defaults that will occur.
Therefore, the interest rates will fluctuate, but they will also balance out to ensure that the return you receive is the return displayed in your account over the course of the year. As the rates have only just changed, these rates are low at the moment, which is why there is an interest shortfall.
Let me know if you need anything else.
Kind Regards,
So investor's interest is being diverted to prop up shield, and at some point "over the course of the year" the diverted interest will be replenished to investors accounts.
So LW, as a struggling company, are commiting to essentially paying double interest for second part of year, using the same basic financial model that got themselves in this pickle
in the first place.
There would seem to be an element of money missing from the equation, where will the extra money come from to provide 8-9% to build average back to 4.5% for those brave enough to stay...
....the 5% leaving penalty has double benefit for LW, boosts the shield and makes it unattractive to leave...., time will tell if LW are able to pull if off....
Thank you for getting in contact.
Your interest rates are calculated on a lifetime basis, and we have calculated this as the return you will receive if you hold the investment for the life of the loan chunks in your portfolio. At any given time, though, we may have to adjust the rates investors receive by more or less, to ensure that the Lending Works Shield receives enough interest to cover the loan defaults that will occur.
Therefore, the interest rates will fluctuate, but they will also balance out to ensure that the return you receive is the return displayed in your account over the course of the year. As the rates have only just changed, these rates are low at the moment, which is why there is an interest shortfall.
Let me know if you need anything else.
Kind Regards,