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Post by p2plender on Apr 27, 2015 6:56:38 GMT
The £60000 philanthropist started knocking the market down last night.
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oldgrumpy
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Post by oldgrumpy on Apr 27, 2015 7:04:39 GMT
The trouble with Mr Philanthropissed is that when he does his thing, RS's hamsters decide that everybody else in their tender care must follow suit. westonkevRS has explained why he does not like the way "My rate"(RS call it Your Rate) functions, but this is a vivid illustration of why I avoid "Market Rate" (except sometimes when I am on holiday) - one person dops in a few thousand quid at a low rate, and "Market Rate" forces hundreds more lenders to do the same.
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spiral
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Post by spiral on Apr 27, 2015 7:50:00 GMT
TBH, irritating though it is, it makes very little difference to anyone that uses YR as opposed to MR. All of that money (£800K or so) would have been in front of me anyway so at worst, RS probably match to more borrowers because of the lower rates rather than them waiting for the £800K @ 6.5% MR to get undercut by those with itchy feet. So if RS lend £600K as oposed to £500K because MR is 0.5% lower, I'm £100K closer to the front come this evening than I would have been had the MR been 6.5%. That still doesn't mean that I agree with how MR is calculated because this proves that it is fundamentally flawed but ultimately it's a majority decision. If no one uses MR, then this could never happen. The problem is that the vast majority are just oblivious to this as RS would not promote the fact that "your money is now in a queue of 0.5million pounds because MR has been set at 6.0% because Joe Charity decided to deposit a few K yesterday at this rate whereas if he hadn't done this your money would be in a queue at 6.5% instead". I have also attached a screenshot of the situation for those that don't get to read this before the issue passes. Attachments:Doc.docx (170.34 KB)
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Post by GSV3MIaC on Apr 27, 2015 7:56:07 GMT
I'm just flabbergasted. That the rate can drop 0.5% in 10 hours and Rs seem to not care that a) it happened, b) their MR system was a/the major contributor. This is almost as bad an example of shafting the uninitiated grannies as FC's autobuy system.
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Post by p2plender on Apr 27, 2015 8:02:34 GMT
6.6 and 6.7 were getting matched all weekend then in comes 60k at 6.1 yesterday evening, bizarre. You'd have thought somebody with that kind of dosh would be a bit more savvy.
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Post by ratrace on Apr 27, 2015 8:15:58 GMT
6.6 and 6.7 were getting matched all weekend then in comes 60k at 6.1 yesterday evening, bizarre. You'd have thought somebody with that kind of dosh would be a bit more savy. l suspect that this money is from a fund. Where they just set a rate that their after rather then try to play the market. Been with RS long enough to understand when something like this happens, then you just need to wait awhile. Because as OG has hinted rates are likely to be back at the 6.4 to 6.5 level by the end of the week.
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Post by GSV3MIaC on Apr 27, 2015 8:17:22 GMT
I would like to assume it was a regular SO or DD payment, with a fixed (some time ago,) investment rate, but probably not on a Sunday, and anyway I think RS fixed that bug. Someone is gaming the system then. I wonder if they borrowed 300k at 6% this am, so they can drop another ,60k in next weekend?
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Post by closetotheedge on Apr 27, 2015 8:17:27 GMT
The poor functioning of the automated re-lending (hyphenated or not?) was the main reason why I left FC. I would not claim to be a busy person, although the crossword does not do itself, however, I really do not want to be bothered to look every day and manage my own repayments. I am sure most lenders are far more committed to RS than I but I still get about £1500 a month to recycle so I need a bit of confidence that this is being managed on my behalf better than this. When I looked this morning it was only on a whim and I saw a huge chunk at 6.0% and then small change right up to 6.5%. Surely RS should have someone who has a bit of judgement looking at this.
I am guessing that if you read this forum you are likely to be a lender who does look every day so perhaps this is not an issue for those reading this.
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oldgrumpy
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Post by oldgrumpy on Apr 27, 2015 8:25:33 GMT
I would like to assume it was a regular SO or DD payment, with a fixed (some time ago,) investment rate, but probably not on a Sunday, and anyway I think RS fixed that bug. Someone is gaming the system then. I wonder if they borrowed 300k at 6% this am, so they can drop another ,60k in next weekend? I can't see anything other than a large manual deposit into the 6.0% pool at some time during the night. That wouldn't be automated, would it? We'll have to watch for this on the last Monday of each month, maybe. edit. ........ or indeed overnight before every Monday.
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spiral
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Post by spiral on Apr 27, 2015 8:29:02 GMT
6.6 and 6.7 were getting matched all weekend then in comes 60k at 6.1 yesterday evening, bizarre. You'd have thought somebody with that kind of dosh would be a bit more savy. I think that is the problem. On the assumption they would have more savvy, comes the accusations of market manipulation. Now I'm not saying it is or isn't but RS's MR calculation leads to the speculation that it is. IIRC only about 1% of monies are discarded as outliers when calculating MR so if there is less than £1m on offer, a deposit of £10K would create the new MR. Now if that was someone with a close affiliation with RS you could have an incentive to do this. In fact using the screenshot from my previous post, the last matched rate was after 7pm last night (at 6.5%) so it would even be possible to deposit the money, create the MR and withdraw the money without ever lending it! What does always strike me as strange with these discussions is the biggest drops always appear on a Sunday evening, just before the 3 day payment run of the Monday.
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Post by p2plender on Apr 27, 2015 9:11:20 GMT
"so it would even be possible to deposit the money, create the MR and withdraw the money without ever lending it!"
The words 'spoofing' and 'layering' spring to mind then.... Heard these somewhere before this last week or so.
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Post by yorkshireman on Apr 27, 2015 10:16:31 GMT
Someone is gaming the system then. I wonder if they borrowed 300k at 6% this am, so they can drop another ,60k in next weekend? Now where have I heard this theory, or something similar, before?
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Post by ratrace on Apr 27, 2015 10:43:40 GMT
Someone has just dropped a cool £30,000 into 5 year market at 6.0. Which again suggests that it is fund money moving into the market, is the reason behind the drop in rates. Because it in their interests to try and get more borrowers into the market which helps to get their larger sums of money lent out sooner.
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oldgrumpy
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Post by oldgrumpy on Apr 27, 2015 11:04:14 GMT
Amazing how, after rates have been consistently around 6.4-6.6% for a few days, someone drops a bombshell at 6.0%, then suddenly a load of borrowers "appears" offering 5.9%.
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agent69
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Post by agent69 on Apr 27, 2015 17:15:16 GMT
, then suddenly a load of borrowers "appears" offering 5.9%. Got 5.9% in the 3 year market last week
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