sl75
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Post by sl75 on Dec 23, 2014 12:17:44 GMT
It is going to be tricky to fill £400k of that at 1% - especially without many autobidders and as the bidding period goes through Xmas. An unfilled stocking I fear. Property has a running down feeling about it - but perhaps it is the Xmas break in the industry. Looks to me like the market has already mostly adjusted to the lower 1% cashback... probably in part due to the squeeze caused by the lack of other investment opportunities within FC during the early part of this week that probably wouldn't have been predicted at the time you made your post last week. For those unwilling to buy loan parts larger than £60, the secondary market is now reporting no loan parts at all available with a discount of at least 1.0%, and I suspect such loan parts offered with a 0.9% discount are disappearing fast too. Maybe by the new year the entire backlog of loan parts discounted by a meaningful amount will have disappeared (or at least those of up to some size), making 1% cashback highly attractive by comparison? Looks to me like the £400k loan shouldn't have too much trouble filling after all. I wonder if the performance issues on the loan selling pages (reported by others in other threads) may in part be due to bot operators switching their bots to focus on the secondary market, thus stressing different parts of FC's systems to normal?
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blender
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Post by blender on Dec 24, 2014 10:05:12 GMT
It is going to be tricky to fill £400k of that at 1% - especially without many autobidders and as the bidding period goes through Xmas. An unfilled stocking I fear. Property has a running down feeling about it - but perhaps it is the Xmas break in the industry. Looks to me like the market has already mostly adjusted to the lower 1% cashback... probably in part due to the squeeze caused by the lack of other investment opportunities within FC during the early part of this week that probably wouldn't have been predicted at the time you made your post last week. For those unwilling to buy loan parts larger than £60, the secondary market is now reporting no loan parts at all available with a discount of at least 1.0%, and I suspect such loan parts offered with a 0.9% discount are disappearing fast too. Maybe by the new year the entire backlog of loan parts discounted by a meaningful amount will have disappeared (or at least those of up to some size), making 1% cashback highly attractive by comparison? Looks to me like the £400k loan shouldn't have too much trouble filling after all. I wonder if the performance issues on the loan selling pages (reported by others in other threads) may in part be due to bot operators switching their bots to focus on the secondary market, thus stressing different parts of FC's systems to normal? You are probably right there sl75. That £400k loan is benefitting from there being currently under 30 loans on the board and no other property - but it is not there yet. FC do need to remove the promotion on property and so this is not an unwelcome run-down over Xmas. The trouble is that everything seems to be running down, and the performance of the website overall does not seem to be responding to the reduction in load. There seem to be many more errors in handling SM transactions recently - but that could be the effect of bots as you say, my cases have been bot purchases. So in a word, yes.
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sl75
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Post by sl75 on Dec 24, 2014 11:15:38 GMT
... the performance of the website overall does not seem to be responding to the reduction in load... I don't think there has been a reduction in load - the excess load seems merely to have shifted from the primary market to the secondary market. In particular, yesterday saw about twice as much value in loan part trades as had been typical per day in the preceding few days, and complaints about (probably load-related) issues are also shifting to the pages that deal with the secondary market. The "market adjustment" I refer to in the previous post would have been a result of a LOT of activity by various parties participating in the market - whether that is by actively buying loan parts, or by re-listing existing loan parts at a different price.
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fasty
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Post by fasty on Jan 7, 2015 14:55:04 GMT
Just in case anyone is interested, there's a new property loan (9918), 8% fixed + 1% splashback over 15 months.
Unsurprisingly at the moment, it seems to be filling quite quickly.
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baldpate
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Post by baldpate on Jan 7, 2015 15:15:08 GMT
This is one of a series of tranches for a VERY large project, where FC have twice before had to pull a tranche auction because it was quite clearly not going to fill. I am watching this auction closely. Given the past history with this series, I'm surprised they have gone for £325K in 7 days. Maybe they think this is their moment, with so few other opportunities around. Or maybe they are under pressure from the developer to complete the land purchase funding??
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Post by GSV3MIaC on Jan 7, 2015 15:48:51 GMT
I don't think the 7 vs 14 days makes significant difference - all autobidders are probably stuffed rather faster than 7 days (given that this one is lowest %funded so will always get first bid) and anyone else who wants some will be able to get a bid in in 7 days, unless they are someplace where the internet has not yet reached. I expect FC will wind up with some eye watering amount themselves, assuming they don't just pull it and/or salami slice it some more. We shall see. The stats for the last 2 weeks show the expected lack of activity, but there are promises (in the weekly funding review blog) of lots in the pipeline .. and 9924 just closed, early, in full flight, with some attractive marginal rates (13.8%) still in.
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Post by pepperpot on Jan 7, 2015 16:24:23 GMT
If you think this 325k might struggle, the next 325k which will be hot on it's heels ain't gotta chance. 1% cb isn't enough to tempt me into more of this one, 2% might have though.
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blender
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Post by blender on Jan 7, 2015 16:25:12 GMT
I have not been lending into this project and was quite surprised to see from the Q&A that this is the fourth loan since the end of October and that none of the cash has yet gone to the borrower and nor will it until a further loan has been filled, after this one. Apparently the cash all sits with FC's legal team as it accumulates with the interest payments coming from extra funds collected to pay it. They have not actually got to the peer-to-peer stage yet as far as the cash is concerned.
Needless to say ...
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Post by Deleted on Jan 7, 2015 17:11:47 GMT
Given how much money supply there is out there compared to the small amount of demand I think this will fill pretty quickly (well within the 7 days). There appear to be a whole bunch of people who are desperate to invest to get anything. In the week after Christmas we saw a median of A+ 6.2%, A 8.2%, B 9.2% and C 10.4% so 8% with 1% over 15 months interest only will just suck on a stream of £100 bids from people (people?) who have a quota to fill. Just had a look at the details and big bids from "Nick" and "Santana" are already in and I would expect Gillian to be along later. 6 hours in and 28% is solid.
We need auctions up to 70+ not 35 and perhaps fewer £10k to buy a van types.
It would be useful to have a total number at the bottom of FC's columns (total amount required etc)
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Post by davee39 on Jan 7, 2015 18:06:53 GMT
May be worth pointing out that there is a handy cash withdrawal facility available on the website, and it seems to be one of the few bits that work correctly.
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sl75
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Post by sl75 on Jan 7, 2015 18:30:29 GMT
May be worth pointing out that there is a handy cash withdrawal facility available on the website, and it seems to be one of the few bits that work correctly. Went to the page to check, and it was showing an out-of-date amount as "You currently have £XXX.XX available to withdraw from your account." - I'd already bid with most of the balance shown. I decided not to test what happens if I attempt to withdraw funds that have already been committed to bids, but I'd question your assertion that this bit works correctly...!
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Post by yorkshireman on Jan 7, 2015 18:42:52 GMT
I made a withdrawal today and it reduced my balance accordingly, now whether it is actioned and reaches my bank account…
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mikeb
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Post by mikeb on Jan 7, 2015 19:01:04 GMT
Just in case anyone is interested, there's a new property loan (9918), 8% fixed + 1% splashback over 15 months. Unsurprisingly at the moment, it seems to be filling quite quickly. The change of company name caught me -- the "you are already exposed" icon shows, but the company name means nothing to me or my spreadsheet. Ah. Ke*w***er is connected to En****a, who I thought made video cards! Already got these, across various tranches and other projects. Moving along ...
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blender
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Post by blender on Jan 8, 2015 18:43:23 GMT
Small 6month property loan (£120k) available, get in while you can, it's going fast.... Have done. The first two tranches had their risk bands removed because of delay just before this third tranche was listed - two months longer completion. Have put mine up for sale but a shame that the owners of the previous tranches cannot. (I had some of the second tranche but sold them long ago).
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adrianc
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Post by adrianc on Jan 9, 2015 12:35:52 GMT
but a shame that the owners of the previous tranches cannot. (I had some of the second tranche but sold them long ago). <waves> Still, bought used (at a discount almost splashback) to keep, so it's not the end of the world. It does seem a bit rude to permading the first two tranches at the same time as selling the third, though. If there's an unwarranted risk to the third sufficient to protect unaware secondary buyers from, why on earth is the third being listed? If the third is good, why RBR the first two? <shrug>
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