jlend
Member of DD Central
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Post by jlend on Apr 9, 2020 9:31:39 GMT
But still better than ratesetter. Assetz is paying back faster than ratesetter. Lending works and growth street are paying back zilch. Have more faith in assetz than ratesetter at present. I cant really complain about RS myself at the moment, although of course this may not always be the case. I am getting all my remaining borrower capital repayments back on time so far at least and can withdraw all of these from my holding accounting if i wish, including 28k of recent borrower repayments from the 1 year account. Am also getting all my interest back on time so far and there are no extra servicing fees so far. The queue is slow, but a portion i did sell out has been returned in full. It is what it is, not easy for any platform right now. I don't doubt the challenges RS and other platforms have and are going to face in the comming months, along with the challenges faced by many lenders and borrowers and the wider public. I have lost a friend to the virus which does put any issues i may have into perspective. In the past RS have had users that have been both lenders and borrowers over time. For any lender with very serious short term issues even with the various government help initiatives this may be something at least worth exploring if it is possible. I think it will take at least 12 months to see the net effect on capital and interest and fees across all the platforms. I don't doubt AC are doing what they feel is best right now taking into account their employees, shareholders, borrowers and lenders. I think that is the case for Ratesetter, Growth Street and Lending Works to be honest.i have faith that they will all do what they can, even if i don't always agree. Lending works have paused their sellout queue and interest payments but are still paying back all borrower capital repayments so far, supported by the shield if needed. The Shield is also still covering at the moment at least the full outstanding capital amount of loans at the point of default, with the whole amount being returned to lenders. They are paying back what they can so far in these very challenging times to lenders who may be struggling with money.
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Post by Harland Kearney on Apr 9, 2020 10:14:10 GMT
I think making stright comparisons in amounts paid between RS and AC is like comparing apples and pairs. The two are doing the same thing, albiet the type of repayment is currently flat rate due to the much fewer capital based repayments made in a AC style loan book. One focused on property and SME's (with contractual drawdowns in traches requiring more cash retention of your investments) & RS is more personal loans, self employed. Both being backed by the Goverment currently heavily.
The RS loan book as a borrower of some type logging into the website repaying everyday. (you only have to check the trust pilot reviews for that one day the gateway for repayments went down!)
Both platforms are doing whats best for their loan books and lenders interests.
Also Funding Circle just paused SM sell outs entirely, moments ago. Not much surprise but yes.
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jlend
Member of DD Central
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Post by jlend on Apr 9, 2020 12:33:28 GMT
I think making stright comparisons in amounts paid between RS and AC is like comparing apples and pairs. The two are doing the same thing, albiet the type of repayment is currently flat rate due to the much fewer capital based repayments made in a AC style loan book. One focused on property and SME's (with contractual drawdowns in traches requiring more cash retention of your investments) & RS is more personal loans, self employed. Both being backed by the Goverment currently heavily. The RS loan book as a borrower of some type logging into the website repaying everyday. (you only have to check the trust pilot reviews for that one day the gateway for repayments went down!) Both platforms are doing whats best for their loan books and lenders interests. Also Funding Circle just paused SM sell outs entirely, moments ago. Not much surprise but yes. Agreed. The platforms are so different in terms of loans, scale, setup, funding etc. Much longer term we will get a better idea about the relative strengths of each platform. Am not surprised that FC has suspended the secondary market. It must have got to the stage it was impossible to price loans at the point of transfer as required by the regulations. The FC transfer fee was simply not reliable IMHO. Below is how the regulations were tightened last year on transfers. For comparison AC currently have 40 out of 588 loans with a capital valuation of less than 100% some of which you would assume have ring fenced money in the PF. This is a mix of loans - defaulted, suspended, credit event, monitoring event, no event. I assume no loans with a capital valuation of 100% have any money ring fenced in the PFs and hence AC are currently confident about 548 loans in terms of capital valuation. ------- To provide some clarity around when and how often platforms should re-price loans, we have included a new rule (COBS 18.12.16) requiring that a platform must review the valuation of each P2P agreement at least in the following circumstances: • when a P2P agreement is originated • where the platform considers that the borrower is unlikely to pay its obligations under the P2P agreement without recourse by the platform to actions such as realising security • following a default • where the platform is facilitating an exit for a lender before the maturity date of a P2P agreement
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rogedavi
Member of DD Central
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Post by rogedavi on Apr 9, 2020 17:36:43 GMT
This time next year we'll be thousandaires Rodders!
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mrsb
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Post by mrsb on Apr 10, 2020 4:05:40 GMT
This time next year we'll be thousandaires Rodders! ... and bald!
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sl75
Posts: 2,092
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Post by sl75 on Apr 10, 2020 10:43:17 GMT
I assume no loans with a capital valuation of 100% have any money ring fenced in the PFs and hence AC are currently confident about 548 loans in terms of capital valuation. Why assume something that AC are explicitly stating is not the case?
When using the "Invest" button on any MLA loan, it says (my emphasis):
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Post by Harland Kearney on Apr 10, 2020 11:10:44 GMT
The wonderful sum of £3.86 available today from my 35k waiting in withdrawal cheque ....not sure if I will be alive to see my cash finally withdrawn . As more people join the queue pool, the payouts will diminish further. I suppose it might be possible that some small investors are now fully out (I believe almost £500 per investor has been repaid now?), but the question is whether more people join the queue than leave. As there is no transparency in pool size, we can only guess. You will not be withdrawn until capital repayments starting ticking in paying off the queue and reducing it; making the pool smaller. I'm in the same ball park for withdraw queued funds as you. Once AC disable fees, change the queue system when they reach the MOL, investor confidence will likely increase enough so that repayment of your funds is a reasonble time frame, albiet months. For now, its a sit on hands game, as it is for most portfilios of this nature in forebarance. Most of the crazy talk on this forum does not help, still don't understand why people get super mad. Would cause more investors to panic making the situtation more confusing that it needs to be.
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Post by stuartassetzcapital on Apr 10, 2020 11:22:55 GMT
It is important to note that regardless of any published rhetoric, pretty much no lenders are lending - alternative or banks - and that means almost no redemptions for some time to come yet. Banks have ceased pretty much 100% of refinancing of our transactions to create a redemption for us/you for example and it isn’t us, it’s the world. They are contributing to the problem and have the balance sheets and government guarantees to not need to do this.
That is one contributing factor to having to extend the loans and offer forbearance.
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dead-money
Rocket to the Moon
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Post by dead-money on Apr 10, 2020 11:30:43 GMT
Worth having a browse of some of the crazies on various investment forums...
Persons trying to cause runs on particular banks with unverifiable conspiracy theories.
Other persons urging everyone to book airline flights, whilst most are still awaiting refunds. (Guess he's heavy on airline / airport stocks.)
Gold bugs are having a field day too.
The Madness of crowds!
I've still got coffee, hobnobs and toilet paper; so sitting tight for another nine weeks at least.
P.S. Can I interest you in my Tulip bulb trading App launching soon on Seedrs /s
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alender
Member of DD Central
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Post by alender on Apr 10, 2020 11:50:42 GMT
It is important to note that regardless of any published rhetoric, pretty much no lenders are lending - alternative or banks - and that means almost no redemptions for some time to come yet. Banks have ceased pretty much 100% of refinancing of our transactions to create a redemption for us/you for example and it isn’t us, it’s the world. They are contributing to the problem and have the balance sheets and government guarantees to not need to do this. That is one contributing factor to having to extend the loans and offer forbearance. The reason why pretty much no lenders are lending is that in this environment it is near impossible to evaluate risk which includes the inability to value assets against the loan as there is a very good chance a lot of these assets will fall significantly in value. The prudent approach is not to lend money at this point in time unless you are a charity.
Whether we like the banks or not they are forced by the government to have good balance sheets, tier 1 ratios etc, they also have a duty of care to share holders which are largely pension funds, if they break this duty of care they can be the subject of legal action. They have good credit risk departments so if they have decided not to loan money at this point in time that tells you all you need to know.
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Post by stuartassetzcapital on Apr 10, 2020 11:59:01 GMT
Well the US is doing it with 100% government guarantees to lenders so there is a solution available.
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alender
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Post by alender on Apr 10, 2020 12:07:43 GMT
Well the US is doing it with 100% government guarantees to lenders so there is a solution available. But we are not in the US. By the way it is not government that ultimately have to honour the guarantee, it is us the tax payer.
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Post by stuartassetzcapital on Apr 10, 2020 12:25:04 GMT
Indeed that is exactly right - we all end up paying one way or another and to greater or lesser degrees.
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Post by stuartassetzcapital on Apr 10, 2020 12:27:55 GMT
The difference between the US and the U.K. is that the 100% cover makes issuing loans as easy as throwing confetti - the U.K. system leaves the lender with material risk so slows things right down. Who is right will be seen in a few months I expect. There’s a lot more to it than that but here is an example summary: apple.news/AmpkdsvxmT8a9UcmpmixjPA
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agent69
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Post by agent69 on Apr 10, 2020 12:39:35 GMT
The wonderful sum of £3.86 available today from my 35k waiting in withdrawal cheque ....not sure if I will be alive to see my cash finally withdrawn . As more people join the queue pool, the payouts will diminish further. I suppose it might be possible that some small investors are now fully out ( I believe almost £500 per investor has been repaid now?), but the question is whether more people join the queue than leave. As there is no transparency in pool size, we can only guess. I think everyone gets the same, so if payouts continue at the rate seen in the last 3 weeks I will be done in another 90 days time. However, last week saw a significant drop in repayments (compared to weeks 1 and 2), and next week will see loads of 30 day requests enter the pool (or should it be ocean).
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