Nomad
Member of DD Central
Posts: 755 
Likes: 513
|
Post by Nomad on Feb 23, 2020 21:23:42 GMT
I'll be shot down in flames, but strikes me that some investors panicked and got out too quickly. Not handled well at all by LW but in the medium/long term this will strengthen the platform, aiding returns of those who stayed put. Probably so, with hindsight. But no regrets on my part.
|
|
squid
Member of DD Central
Posts: 141
Likes: 204
|
Post by squid on Feb 23, 2020 21:34:33 GMT
I'll be shot down in flames, but strikes me that some investors panicked and got out too quickly. Not handled well at all by LW but in the medium/long term this will strengthen the platform, aiding returns of those who stayed put. This has however proven to have been a very good decision in a few other cases with P2P, also true for certain other investments too. Agreed about the LW handling of the issue.
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 23, 2020 21:51:25 GMT
I'll be shot down in flames, but strikes me that some investors panicked and got out too quickly. Not handled well at all by LW but in the medium/long term this will strengthen the platform, aiding returns of those who stayed put. No regrets at getting out - I'd be feeling pretty uneasy if I were still in. And as to whether I lose out by having got out too quickly - well that depends what return I get with the money compared to the forward interest rate I was getting with LW (2% ish when I last looked at it) - and what risk I take (I'd rather have it in fully secure cash savings for 2%). All assuming LW survives. of course. After the hit to sell out I left with an XIRR of nearly 4% over several years with LW. I learnt a long time ago that it is never wrong to bank a profit, and that a bird in the hand is worth two in the bush. Good luck to everyone still in LW - I hope it does OK and that your returns improve over time.
|
|
alanh
Posts: 556
Likes: 560
|
Post by alanh on Feb 23, 2020 22:18:21 GMT
I'll be shot down in flames, but strikes me that some investors panicked and got out too quickly. Not handled well at all by LW but in the medium/long term this will strengthen the platform, aiding returns of those who stayed put. No regrets at getting out - I'd be feeling pretty uneasy if I were still in. And as to whether I lose out by having got out too quickly - well that depends what return I get with the money compared to the forward interest rate I was getting with LW (2% ish when I last looked at it) - and what risk I take (I'd rather have it in fully secure cash savings for 2%). All assuming LW survives. of course. After the hit to sell out I left with an XIRR of nearly 4% over several years with LW. I learnt a long time ago that it is never wrong to bank a profit, and that a bird in the hand is worth two in the bush. Good luck to everyone still in LW - I hope it does OK and that your returns improve over time. Totally agree. Whats the upside? - you get half the returns you expected if you were lucky. Whats the downside? - the platform grinds to a halt and ceases trading. I have no idea what the outcome of this is going to be but I can't see the point in hanging around to find out. I liked LW and I really hope they can pull through but its going to take a concrete turnaround in a variety of lending statistics to convince me to put any money whatsoever back into this outfit.
|
|
|
|
Post by carol167 on Feb 23, 2020 22:40:09 GMT
So far I've managed to dodge the meltdowns for FC, FS, MT and Lendy (I never was in Collateral) to any great extent and I never switched over to Zopa's reincarnation. And I was in all of them for a long time. Just scraps left caught and no capital loss.
The bottom line is...
No one knows what interest rate they are getting on LW. We don't even now know what the terms of exiting are since they seem to change with the wind - depending on how LW are tweaking them at the time.
Those who stay think they're going to get 5.4%. Well we all thought we were getting whatever rates the dashboard said when we invested our money. Clearly that was false. And the only way you might get 5.4% is if you stay forever. You have to totally trust LW going forward that they will clean up their act and get better borrowers than they've been getting so far *and* that the ones they already have don't nosedive even further. And all this while things have been relatively 'normal' with no adverse 'events'. If they can't make hay while the sun shines you'd better pray it doesn't rain...
I'm afraid the bevaviour of some of the other platforms have made me far more warey/cynical than I otherwise would have been.
To those who have invested large amounts in LW and are staying... you are clearly either very brave or rather foolish.... time will tell.
|
|
|
|
Post by gravitykillz on Feb 23, 2020 22:58:40 GMT
Agree with carol. Also we are not sure what effect all these compensation claims to the fos are going to have on lw and their provision fund.
|
|
benaj
Member of DD Central
N/A
Posts: 5,591
Likes: 1,735
|
Post by benaj on Feb 23, 2020 23:52:39 GMT
All quiet now on the lw board. Anything changed with the platform over the last 2 weeks ? Any improvements? Major improvement. Underlying interest rates payable to retail investors on 2018 and 2019 loans have been increased by an average of 1.57% with since Feb 12th. p2pindependentforum.com/post/368348/threadChecking my partner's (2018 & 2019 Growth) transaction history, there's evidence increase in interest payment. Variable monthly interest yield (Interest received in the month / Outstanding capital) | Cohort | Before 12th Feb 20 | After 12th Feb 20 | | 2018 | 1.4% | 2.6% | | 2019 | 2.8% | 4.8% |
Too early to report the change in XIRR, but I say XIRR (excluding bonus and fees) would be over 5.4%+ in the current tax year (06.04.2019 - 05.04.2020) Best of all, interest shortfall penalty is a lot lower. Lowest interest shortfall penalty for selling a loan chunk in 2019 cohort is 0.26%.
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 24, 2020 7:49:58 GMT
Question is - if those higher forward interest rates were unsustainable in January, why are they now felt sustainable just 1 month later? I'd be fearful of either another cut or a longer period of less-than-advertised rates.
Also, on my small runt of residual loan parts, the interest rate shortfall is still 5% ish.
|
|
macq
Member of DD Central
Posts: 1,934
Likes: 1,199
|
Post by macq on Feb 24, 2020 8:54:54 GMT
I'll be shot down in flames, but strikes me that some investors panicked and got out too quickly. Not handled well at all by LW but in the medium/long term this will strengthen the platform, aiding returns of those who stayed put. Panicked might be the right word but most will have had good returns over the last few years so not sure they got out too quickly or banked a profit.I am never sure whether the will for p2p platforms to succeed and for any faults to be given the benefit of the doubt is just by the people on here or p2p investors in general but does not happen with other companies when money is involved.But why wait to see if they get it right a second time? And my returns will have already been aided by adding them to an IT where the divs will be more guaranteed then LW income at the moment (but with and to be very generous the same level of capital risk) Looking medium/long term but in the other direction - about this time last year most people already thought it was a strong platform,so the changes may solve the problems of the provision fund(hopefully) but the aiding of returns to those who stayed requires more than that it also requires less defaults then expected or the penalty part of the equation comes back in again
|
|
|
|
Post by Deleted on Feb 24, 2020 17:49:49 GMT
So far I've managed to dodge the meltdowns for FC, FS, MT and Lendy (I never was in Collateral) to any great extent and I never switched over to Zopa's reincarnation. And I was in all of them for a long time. Just scraps left caught and no capital loss.
The bottom line is...
No one knows what interest rate they are getting on LW. We don't even now know what the terms of exiting are since they seem to change with the wind - depending on how LW are tweaking them at the time.
Those who stay think they're going to get 5.4%. Well we all thought we were getting whatever rates the dashboard said when we invested our money. Clearly that was false. And the only way you might get 5.4% is if you stay forever. You have to totally trust LW going forward that they will clean up their act and get better borrowers than they've been getting so far *and* that the ones they already have don't nosedive even further. And all this while things have been relatively 'normal' with no adverse 'events'. If they can't make hay while the sun shines you'd better pray it doesn't rain...
I'm afraid the bevaviour of some of the other platforms have made me far more warey/cynical than I otherwise would have been.
To those who have invested large amounts in LW and are staying... you are clearly either very brave or rather foolish.... time will tell.
The truth is I don't 'trust' any P2P platform, never have done and never will do. All the bad things said about here about LW I could equally say about Z. The whole market is a minefield really, with the backdrop of most/all asset classes falling, it's all rather grim. And then there's Corona which could hit P2P very hard indeed.
|
|
|
|
Post by carol167 on Feb 24, 2020 21:13:33 GMT
The truth is I don't 'trust' any P2P platform, never have done and never will do. All the bad things said about here about LW I could equally say about Z. The whole market is a minefield really, with the backdrop of most/all asset classes falling, it's all rather grim. And then there's Corona which could hit P2P very hard indeed. Head for cash savings and wait it out for 6 months to a year. That might be the best plan. At least then if stocks bottom out - you've got spare cash for a great buying opportunity.
|
|
|
|
Post by Deleted on Feb 24, 2020 22:02:17 GMT
The truth is I don't 'trust' any P2P platform, never have done and never will do. All the bad things said about here about LW I could equally say about Z. The whole market is a minefield really, with the backdrop of most/all asset classes falling, it's all rather grim. And then there's Corona which could hit P2P very hard indeed. Head for cash savings and wait it out for 6 months to a year. That might be the best plan. At least then if stocks bottom out - you've got spare cash for a great buying opportunity.
Very true. My Bond funds went up today by about 0.5% but everything else down c. 1.5% over all! None bought recently thankfully. Used to be a bit of a Goldbug but never ever timed it right so I don't have any gold, physical or otherwise! Some miners were good news today. Will it go up tomorrow? hmm very difficult call, futures 'strong sell' still so it is a decision I will make at 6am !
|
|
