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Post by Badly Drawn Stickman on Sept 10, 2020 15:56:05 GMT
Good for you. I dropped ONE place in the A/P/M markets. APM isnt really doing any RYI again from what I see 5 Year with no lending constantly has funds coming in that are used to RYI I bet the total is about £0.4M again today and it will all be 5 year, as the available and remaining now moved about that amount Its possible though it could be more as I cannot see 1 year, anything over £0.4 I think is 1 year There is 1.2 million on the 1 Year, starting at 2.9%, taking 5% as a reasonable mark would be 425K A few more loans repaid early today so is the possible reason for such bounty.
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Post by RateSetter on Sept 10, 2020 16:03:31 GMT
Good afternoon. Today we have delivered £0.4m, and the full update follows:
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 10, 2020 18:58:47 GMT
I don't know if this has been discussed elsewhere but what are people's thoughts for what will happen to the 1-year and A/P/M when the 5-year market catches up to the present? Either the total amount that will be processed through RYI will drop or the other queues should start to make some more significant progress. Hoping for the latter of course! Lending in 5 = £0 - this is why it is clearing 1 and A/P/M will not move faster until new loans stop. All that will happen is that you will have a longer wait
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robski
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Post by robski on Sept 10, 2020 20:56:18 GMT
I don't know if this has been discussed elsewhere but what are people's thoughts for what will happen to the 1-year and A/P/M when the 5-year market catches up to the present? Either the total amount that will be processed through RYI will drop or the other queues should start to make some more significant progress. Hoping for the latter of course! Lending in 5 = £0 - this is why it is clearing 1 and A/P/M will not move faster until new loans stop. All that will happen is that you will have a longer wait Yes at the moment this is true A few of us have pondered however that once 5 year is say returning RYIs immediately and should a balance of funds build up there, could/would RS be willing to move contracts from 1/APM to 5 year Technically it may not be easy, but in theory they could move the contracts and allow the 5 years funds to return capital to the 1/APM markets To me the issue is likely to be rates, the APM and to some extent 1 year have historically lent at lower rates, any adjustment to the rate is gained/lost by RS. So moving 1/APM to 5 year would probably require the 5 year funds to go lower than normal, since I cannot imagine RS taking a hit to their own share of the interest in order to satisfy RYI
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 10, 2020 21:39:31 GMT
Lending in 5 = £0 - this is why it is clearing 1 and A/P/M will not move faster until new loans stop. All that will happen is that you will have a longer wait Yes at the moment this is true A few of us have pondered however that once 5 year is say returning RYIs immediately and should a balance of funds build up there, could/would RS be willing to move contracts from 1/APM to 5 year Technically it may not be easy, but in theory they could move the contracts and allow the 5 years funds to return capital to the 1/APM markets To me the issue is likely to be rates, the APM and to some extent 1 year have historically lent at lower rates, any adjustment to the rate is gained/lost by RS. So moving 1/APM to 5 year would probably require the 5 year funds to go lower than normal, since I cannot imagine RS taking a hit to their own share of the interest in order to satisfy RYI a good point, but would they use engineers to enhance this vs value add options. I do not doubt ratesetter will just allow funds to build up and advise customers to take their money back. Cheaper to do and no tech work needed.
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savernake
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Post by savernake on Sept 11, 2020 9:15:04 GMT
Once the Metro takeover is complete, all new lending will be funded by them. Doesn't that mean all capital repayments which are currently being re-lent out in A/P/M will become available for the RYI queue instead? So the queue should start to move more quickly right?
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r00lish67
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Post by r00lish67 on Sept 11, 2020 9:39:22 GMT
Once the Metro takeover is complete, all new lending will be funded by them. Doesn't that mean all capital repayments which are currently being re-lent out in A/P/M will become available for the RYI queue instead? So the queue should start to move more quickly right? Lending increased by circa £27m over the last month we have stats for, so if you're right, then that could be an extra £0.9m a day that could be returned to investors. Can't help but feel there's a catch or something missing there somewhere though.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 11, 2020 9:51:22 GMT
Lending in 5 = £0 - this is why it is clearing 1 and A/P/M will not move faster until new loans stop. All that will happen is that you will have a longer wait Funny that as new loans in the A/P/M market are generally for 5 years. well that was the point... 5 year was to close and all lending from A/P/M therefore this is why all lending is from there now too...
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chris1200
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Post by chris1200 on Sept 11, 2020 10:02:07 GMT
Once the Metro takeover is complete, all new lending will be funded by them. Doesn't that mean all capital repayments which are currently being re-lent out in A/P/M will become available for the RYI queue instead? So the queue should start to move more quickly right? For the life of me I can't remember which threads this was in now - but I and others had quite a detailed discussion about the options in this regard, and I provided some answers I received from RS too. In short, the question is whether RS will allow re-investment to continue after completion of the acquisition, with no new (p2p-funded) lending. If they do - as you suggest - this should provide plenty of funds for RYIs. Their 'wind down' plan suggests this is possible; but RS said they may not follow this 'wind down' plan and may instead 'run off' the loanbook, which would involve all repayments being diverted to holding accounts. Edit: Found the posts - see here and the posts below it for discussion on this; and also here for links to the relevant T&C on 'wind down'. I've since pressed RS further on the 'run off' scenario and under what terms they would carry this out and it clearly touched a nerve : " At the moment, we continue to manage the loanbook in the same way but if any changes are made we will notify our investors. Any changes are reviewed by our legal team and the FCA where required. We're happy to answer any other questions you may have but will not continue to discuss hypothetical scenarios. As you may be aware, the Metro takeover is still awaiting FCA approval and therefore, we are not yet in a position to discuss and confirm what changes could be made to the management of the loanbook in the future."
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aju
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Post by aju on Sept 11, 2020 10:06:28 GMT
Once the Metro takeover is complete, all new lending will be funded by them. Doesn't that mean all capital repayments which are currently being re-lent out in A/P/M will become available for the RYI queue instead? So the queue should start to move more quickly right? Lending increased by circa £27m over the last month we have stats for, so if you're right, then that could be an extra £0.9m a day that could be returned to investors. Can't help but feel there's a catch or something missing there somewhere though. The catch might be when borrowers are moved over to Metro and RS lenders turn their relend settings off or RS does this automatically then the returns can only be sent back to the original lender so in essence there is no more RYI. I think that's right but who knows where this will end up.
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robski
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Post by robski on Sept 11, 2020 13:40:47 GMT
My view is Once the RS / Metro deal is complete they will lose the want of dealing with RYIs unless they are making money from it
It clearly takes time and effort so the question will be will fees gained exceed costs of doing RYIs Costs fo doing RYIs being the staff/systems costs plus or minus the rate differential between lender 1 and lender 2
My gut feel is they will probably continue unless funds from people willing to lend low dry up, at that point I would suspect RS would stop as not in their interests to continue
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Post by RateSetter on Sept 11, 2020 16:00:52 GMT
Good afternoon all. Today we have delivered £0.8m and the full update is below:
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 11, 2020 16:25:07 GMT
Good afternoon all. Today we have delivered £0.8m and the full update is below: Imagine the day it says same day
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Post by bornconfused on Sept 11, 2020 18:08:34 GMT
Good afternoon all. Today we have delivered £0.8m and the full update is below: Imagine the day it says same day I don't think we will have to imagine for long. I expect the 5 year queue to clear within the next two weeks
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Post by RateSetter on Sept 14, 2020 16:01:52 GMT
Good afternoon everyone. Today we have delivered £1.0m and the full update is below:
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