spiral
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Post by spiral on Jun 26, 2015 17:24:22 GMT
Well I've just taken a look and the total matched in the last 24 hours was 370K (mean over last month is about 480K) so about 25% down.
It also appears that very little (if any) MR money has matched at all so far.
This means that most matches so far have been at 6.5 or less so if there aren't many more matches this evening (without further lower rate deposits) MR will definitely drop by 1 if not 2 points.
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Post by westonkevRS on Jun 26, 2015 17:27:20 GMT
Daily repayments are normally quite a large amount and will mostly be placed at MR, causing quite a few lenders at the rear to leapfrog over to below MR. New money may also do this. Consequently MR will only move in one direction - downwards. This will continue until the rate become unattractive to lenders but will stay low. A few bursts though MR on high volume days will not be enough to raise the next days MR above the current days one. Another note for more positive MR calculation. The calculation isn't a full 24hours, it is specifically 6am to 10pm, therefore post MR calculation to 6am any low ball offers or YR rates from reinvestment will be matched first. Therefore there is every chance the low balls and YR will not be included in the calculation. This will only leave MR, rates eaten above MR if we have a busy day vs low ball offers manually placed during the day. This is a perfect market place therefore, and could push MR upwards or downwards based on lending volumes, it isn't geared downward only. @ westonkevRS
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spiral
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Post by spiral on Jun 26, 2015 17:38:39 GMT
.... Imagine the screams of anguish if MR was still being set by orders, the MR would have been set perhaps a whole 1% lower than it was. Yes but as with Aldi's special buy's, when its gone , its gone. Now, when its gone its, well still there as part of the calculation that will cause tomorrow's rate to be driven lower You are right though Kev, it is a market and if someone wants to lend at rates lower than me, well I can't do anything about that. People over at Zopa are still willing to lend at a full 1.5% less than RS which totally bemuses me. Maybe when rates are low enough over here, they'll come and join us.
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spiral
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Post by spiral on Jun 26, 2015 17:50:22 GMT
Another note for more positive MR calculation. The calculation isn't a full 24hours, it is specifically 6am to 10pm, therefore post MR calculation to 6am any low ball offers or YR rates from reinvestment will be matched first. Therefore there is every chance the low balls and YR will not be included in the calculation. When does the repayment run start? It's usually over and done by the time I look at 0830ish. I'm also not convinced that this will lead to higher MR calculations. Admittedly, not much activity will take place between 10 and 6 but I suspect there would be more loans made than deposits placed on market therefore those loans are likely to be made at higher rates. There have been posts recently about matches made in the small hours and in fact I had one at 1am this morning.
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spiral
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Posts: 909
Likes: 456
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Post by spiral on Jun 26, 2015 17:56:31 GMT
Oh dear, and if all this doom and gloom ain't enough to make you want to cry, along comes cashback the sequel, to coincide with the first of the month repayment run. Oh dear, Oh deary deary dear.
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teddy
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Post by teddy on Jun 26, 2015 19:26:47 GMT
I simply haven't got any more money to put in RS, so they can stick their very poor 1% cashback offer where the sun don't shine.
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Post by p2plender on Jun 26, 2015 19:38:13 GMT
bloody cashback deal is back. Got panned on the last one lending at 6%. Time to divert repayments to holding for next few weeks....
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Post by robinshould on Jun 26, 2015 20:08:21 GMT
I've been a bit bemused by the market rate thing, because since I started lending with RS ( in the 5 year market ) I have always cleared all repayments back to my bank account every week ( where I get good interest) and watch the volume/rate trends and put back in at YR once every other month or so, obviously at those times of the week/month that has been much observed on this forum to be strong for lenders. I have been getting above average rates as a result. I thought everyone on here was doing something similar?
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Post by brokenbiscuits on Jun 26, 2015 20:53:23 GMT
I've been a bit bemused by the market rate thing, because since I started lending with RS ( in the 5 year market ) I have always cleared all repayments back to my bank account every week ( where I get good interest) and watch the volume/rate trends and put back in at YR once every other month or so, obviously at those times of the week/month that has been much observed on this forum to be strong for lenders. I have been getting above average rates as a result. I thought everyone on here was doing something similar? unless ive confused myself (which is very possible) how does missing say 6.2% for a month and holding out for 6.8% work, if the month you are waiting for ratesetter rises your money is sat in a 5% current account? yes your ratesetter average rate will look higher, but your overall returns will be down? Unless there is a 6.5% or better current account i don't know about?
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Post by westonkevRS on Jun 26, 2015 21:26:38 GMT
When does the repayment run start? It's usually over and done by the time I look at 0830ish. There have been posts recently about matches made in the small hours and in fact I had one at 1am this morning. The MR is usually within a minute or so of the same time every day. It usually occurs x minutes after the daily batch process runs. I don't want to discuss specific times when the MR is set (previously when it was based on current orders we were nervous about saying specific times), but it is close to " when you are at your lowest ebb" and far before the sun rises. Matches can occur 24 hours, 7 days a week. I don't want to discuss exactly how this happens but we have many partners with different processing methods for loans. The computer takes a lot of the strain for our partners, not all matches require human intervention. @ westonkevRS
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Post by robinshould on Jun 26, 2015 21:27:52 GMT
Yes. I can see where you are coming from. However it works for me because I want to maintain about £xK in RS at a roughly steady level throught the year ( for portfolio diversification reasons I don't want it to go above that ), and so my approach gives me a higher return for that £xK in my portfolio.
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spiral
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Post by spiral on Jun 27, 2015 7:32:23 GMT
The MR is usually within a minute or so of the same time every day. It usually occurs x minutes after the daily batch process runs. Should this be "before the daily ...."? If not I'm confused. Surely MR needs to be set before the run otherwise where do you place MR offers.
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Post by westonkevRS on Jun 27, 2015 8:37:40 GMT
The MR is usually within a minute or so of the same time every day. It usually occurs x minutes after the daily batch process runs. Should this be "before the daily ...."? If not I'm confused. Surely MR needs to be set before the run otherwise where do you place MR offers. When I say "batch" there is a lot of processing being performed not just reinvestment, and the MR occurs 9 minutes into this overall process. Placing reinvested money onto the Market comes near the end of the batch.
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