beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Aug 28, 2020 14:56:38 GMT
If you are 5 year and 1.5% capital fee for a early sellout suddenly adds up. I for one would be paying over 10k. so why would i not cancel and let the 5 year move organically. I guess you don't need to be singing "If I were a rich man ..." then You don't seem to be on our lists are you by chance in the Access queue and holding us all up then I have made my money yes and diversified the living daylights out of it. i have some sellouts but i accepted the risks with the rewards here and am prepared to ride it out and let high rates repay me vs capital sacrifice through a fee. i am not really in APM sold out on the 9th of March. If I lose money i lose money. we will see
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Aug 28, 2020 15:25:30 GMT
RS say that £32m in the queue has been cancelled (and IMO this accounts for much of the movement from position 100+). And yet nobody on here can think of a reason to cancel. Strange. If you are 5 year and 1.5% capital fee for a early sellout suddenly adds up. I for one would be paying over 10k. so why would i not cancel and let the 5 year move organically. When I invested in 5 year I took the decision that a one off 1.5% fee to exit (if I decided to) was worth it for the annual difference in rates with the other accounts. It's still only 1.5% however big a chunk of cash that represents and we've been getting good rates of interest (close to 6% for me) over several years so spreading that fee over the investment period would represent only a small reduction in overall interest rate. Interest rates are now only half what they were so we are already losing out, rates are not likely to go up again in the current circumstances, so after about 6 months we will have 'lost' about 1.5% interest anyway. Then it depends where else you can deploy the funds and whether the RS wind down works well and we continue to get the current (reduced) rates and full capital recovery or if there are further cuts down the road. I'm going to take the hit and get out.
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aju
Member of DD Central
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Post by aju on Aug 28, 2020 16:09:42 GMT
I guess you don't need to be singing "If I were a rich man ..." then You don't seem to be on our lists are you by chance in the Access queue and holding us all up then I have made my money yes and diversified the living daylights out of it. i have some sellouts but i accepted the risks with the rewards here and am prepared to ride it out and let high rates repay me vs capital sacrifice through a fee. i am not really in APM sold out on the 9th of March.If I lose money i lose money. we will see I wish Mrs Aju would see it that way but then she's looking at things from a very different perspective of what have we left for her shopping trips, when the covid finishes if it ever does ...
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Post by RateSetter on Aug 28, 2020 16:28:50 GMT
Good afternoon, today we have delivered £0.4m and the full update is below:
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Aug 28, 2020 16:49:01 GMT
I have made my money yes and diversified the living daylights out of it. i have some sellouts but i accepted the risks with the rewards here and am prepared to ride it out and let high rates repay me vs capital sacrifice through a fee. i am not really in APM sold out on the 9th of March.If I lose money i lose money. we will see I wish Mrs Aju would see it that way but then she's looking at things from a very different perspective of what have we left for her shopping trips, when the covid finishes if it ever does ... Well if that is the case for Mrs Aju with respect she has (in my view) failed a very basic rule of investing and used money she is not prepared to lose. Investment should be to expand and diversify your financial position and thereby hopefully create wealth and freedom. However, using funds you actually need (in the short to medium term) the risk for that capital is therefore too great and becomes emotional (which I am sure a number on this forum are experiencing) . If the provision fund ran out and we lost funds I wonder how many would be enraged vs accepting of a loss on their portfolio (during covid). My opinion only mind. I am sure someone will shoot at me.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Aug 28, 2020 17:00:19 GMT
I wish Mrs Aju would see it that way but then she's looking at things from a very different perspective of what have we left for her shopping trips, when the covid finishes if it ever does ... Well if that is the case for Mrs Aju with respect she has (in my view) failed a very basic rule of investing and used money she is not prepared to lose. Investment should be to expand and diversify your financial position and thereby hopefully create wealth and freedom. However, using funds you actually need (in the short to medium term) the risk for that capital is therefore too great and becomes emotional (which I am sure a number on this forum are experiencing) . If the provision fund ran out and we lost funds I wonder how many would be enraged vs accepting of a loss on their portfolio (during covid). My opinion only mind. I am sure someone will shoot at me. I don't think you are appreciating Aju's sense of humour. (Bet he comes back and says it's not funny!)
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Post by Badly Drawn Stickman on Aug 28, 2020 17:16:33 GMT
Well if that is the case for Mrs Aju with respect she has (in my view) failed a very basic rule of investing and used money she is not prepared to lose. Investment should be to expand and diversify your financial position and thereby hopefully create wealth and freedom. However, using funds you actually need (in the short to medium term) the risk for that capital is therefore too great and becomes emotional (which I am sure a number on this forum are experiencing) . If the provision fund ran out and we lost funds I wonder how many would be enraged vs accepting of a loss on their portfolio (during covid). My opinion only mind. I am sure someone will shoot at me. I don't think you are appreciating Aju's sense of humour. (Bet he comes back and says it's not funny!) He probably needed to warm up the crowd with a few mother in law gags to get people into the right groove.
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aju
Member of DD Central
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Post by aju on Aug 28, 2020 17:19:44 GMT
I wish Mrs Aju would see it that way but then she's looking at things from a very different perspective of what have we left for her shopping trips, when the covid finishes if it ever does ... Well if that is the case for Mrs Aju with respect she has (in my view) failed a very basic rule of investing and used money she is not prepared to lose. Investment should be to expand and diversify your financial position and thereby hopefully create wealth and freedom. However, using funds you actually need (in the short to medium term) the risk for that capital is therefore too great and becomes emotional (which I am sure a number on this forum are experiencing) . If the provision fund ran out and we lost funds I wonder how many would be enraged vs accepting of a loss on their portfolio (during covid). My opinion only mind. I am sure someone will shoot at me. I don't have a gun so that ain't going to happen - far too violent for the likes of me anyway. I keep trying to guide her in that basic rule you prof-erred but sadly she's not interested in investing and falls asleep unless until she hears those dreaded terms like run on the bank/p2p and other specific financial calamities then she perks up. Mind you she soon gets back off her perch and can be pacified with another trip to the shops thankfully ... I am of course joking at her expense, she's usually very busy upstairs on the laptop delving in to the murky past of our families on her ancestry sites - we are of Viking and Scottish extract as well as quite a few other things something about poor houses and the like but best not to delve too deeply into the awkward bits. (Danny Dyer we ain't) We re both retired and using any number of means to make the money go further - ok she knows I am taking certain risks with what is basically our play money - i use that term loosely of course as I don't want to give anything away if I can stop it so gambling is not on my list but mitigated risk is fine. Greenwood2 , is right though i did have my tongue in cheek when I made the comments. We are a long long way from joining our ancestors and having to frequent the poor house but I thank you for your concern ... Edit: took me three goes at greenwood's id I forgot you were the one.
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aju
Member of DD Central
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Post by aju on Aug 28, 2020 17:21:42 GMT
I don't think you are appreciating Aju's sense of humour. (Bet he comes back and says it's not funny!) He probably needed to warm up the crowd with a few mother in law gags to get people into the right groove. I never needed MIL gags she was Irish and could hold her own on any platform when she was alive... god rest her soul.
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Post by bornconfused on Aug 28, 2020 18:17:06 GMT
Big movement today on the 5 year market. A jump of 7 days from 22nd May to 29th May.
At this rate the 5 year queue could be gone in the next few weeks
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Post by Deleted on Aug 28, 2020 18:28:50 GMT
Depends if there are any more 'spikes' in RYIs. It took 2 weeks to clear the 4 days from 4th-7th May. Then just 5 days to clear the next 3 weeks
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Post by diversifier on Aug 29, 2020 8:19:53 GMT
Big movement today on the 5 year market. A jump of 7 days from 22nd May to 29th May. At this rate the 5 year queue could be gone in the next few weeks Indeed. Be careful what you wish for. As soon as the RYI queue goes to zero, at a rate of several days per day, without new lending, “something happens”. That queue movement rate equally defines that the rate of reinvestment request is several times that of investable loans. This can’t (and therefore won’t) be satisfied. Immediately, the *lending* queue in 5yr will start to increase. People will have money piling up pending reinvestment, at a rate of roughly £2m per week. That’s not much money for the overall platform, but it’s a lot for the 5yr market. For months, RS have artificially prevented the interest rate rising. But I very much doubt they will do the same on the way down. So, prepare for the “Matching Rate” to suddenly fall from “4.7%” to 2%. As folks in these forums are aware, “ Access” is nothing of the sort, therefore the “3%” available in Access isn’t a viable replacement, so it doesn’t provide a floor. Given that number is theoretical, and should actually be understood as halved for the foreseeable future, half of 2% is the 1% we can get in NS&I. So that’s where I think 5yr interest rates will go to within weeks of the 5yr RYI queue clearing. Of course, when that happens, people will stop reinvesting, and the *lending* queue will start to diminish rapidly. Eventually it will hit zero again. Then rates will rise again, right? Nope. RS will just artificially prevent that, and we’ll get another RYI queue, but at a lower interest rate.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Aug 29, 2020 8:28:36 GMT
Is cash in the holding a/c protected by the FSCS? If not, will it be if the MB takeover proceeds? Are folk leaving cash to pile up to a reasonable amount before withdrawing, or taking no chances and withdrawing even small amounts as they occur?
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mogish
Member of DD Central
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Post by mogish on Aug 29, 2020 8:46:47 GMT
Personally I let it build up to around a grand then put in a isa transfer request. Will keep doing this until my Ryi is returned or funds build up again in holding
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Post by diversifier on Aug 29, 2020 8:49:52 GMT
Big movement today on the 5 year market. A jump of 7 days from 22nd May to 29th May. At this rate the 5 year queue could be gone in the next few weeks On a related note, what’s the longest remaining duration contract that anybody has in 5yr? Given no new 5yr lending, which they stopped lending a while ago without telling anybody, I’m wondering when final closing day is. I’m over 99% done by November, but I have a smattering in a dozen sub £10 stretching further, ending in C184147516307 , due 21 months.
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