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Post by RateSetter on Dec 11, 2020 16:45:10 GMT
Good afternoon. Today we have delivered £0.9m and the full update is below:
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littleoldlady
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Post by littleoldlady on Dec 11, 2020 17:02:46 GMT
I see. But ISTM that the fact that the RYIQ is moving quickly means that there is lots of money being lent at 3% to buy the loans at the front of the queue, so I think you are being optimistic in trying to lend at 5% or more, and you are getting no interest at all in the meantime. I fear that one of the two groups you mention is very small, in fact you might be the only one in it . But whatever you do take no advice from me. You seem to have forgotten that the "headline" rates are halved until further notice. The offer that has a 5.0% rate selected is really seeking to match a return of 2.5% in the short term, which barely seems worth the risk (it would be just high enough to keep existing funds on the platform through inertia, but that's as far as I'll go for that...)
I'd disagree somewhat with the suggestion that it's moving "quickly", but that is of course a relative term - they're still stuck processing requests that were initiated more than 8 months ago, and processing less than 1 days' worth per day on average - not exactly "quickly" in my book.
Credit due that they've processed a few big chunks lately, but I'm hardly alone in the "waiting for an acceptable rate" group - there's millions of pounds worth of other people's money already waiting on the market (and probably many millions more in external accounts that could or would be transferred in if there were any sign of movement at rates the investors each find acceptable). In effect RateSetter seem to be operating a de-facto rate cap for new matches whilst continuing to pretend that the rate is in any way linked to market demand.
The post from RS above says that they have released £158m+ since March. This means that someone has invested that amount to buy the loans held by those who have been RYI'd. If you have had no bites at 5% that means that the required rate for those investors is less than 5%. In fact it is IMO almost certain that it is most if not all at 3% because most of it is cash from borrowers repaying loans held by investors who are not monitoring their account and have not increased their required rate and probably have always had the default rate. If not then where has the £158m come from?
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sl75
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Post by sl75 on Dec 11, 2020 21:06:26 GMT
The post from RS above says that they have released £158m+ since March. This means that someone has invested that amount to buy the loans held by those who have been RYI'd. If you have had no bites at 5% that means that the required rate for those investors is less than 5%. In fact it is IMO almost certain that it is most if not all at 3% because most of it is cash from borrowers repaying loans held by investors who are not monitoring their account and have not increased their required rate and probably have always had the default rate. If not then where has the £158m come from? Their post above says they released only £0.9M, which is a small fraction of the amount that was available to be matched today.
How much more than £158m could they have matched if they'd allowed the market to determine the rate rather than dictating it? I'd personally have invested enough that my RateSetter total would be more than double its current total, and perhaps even triple. Maybe they'd even have been able to get the processing up to date....
You describe the competition for rates in the market as though there is only a very limited amount of RYIs and those offering money are competing to be matched to the handful of loans being sold. That's not what everyone else seems to think is happening... instead, RateSetter are artificially limiting the amount that gets matched on the marketplace, and seem to be doing so in a manner intended to reduce rates rather than to increase how fast RYIs can be processed.
Given that there are plenty of people seemingly happy to continue lending at their so-called "going rate" or even lower(!), I can't say I blame RateSetter for taking advantage of it, but that is definitely not the same thing as "continuing to deliver as many requests as possible every day".
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littleoldlady
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Post by littleoldlady on Dec 11, 2020 23:43:24 GMT
The post from RS above says that they have released £158m+ since March. This means that someone has invested that amount to buy the loans held by those who have been RYI'd. If you have had no bites at 5% that means that the required rate for those investors is less than 5%. In fact it is IMO almost certain that it is most if not all at 3% because most of it is cash from borrowers repaying loans held by investors who are not monitoring their account and have not increased their required rate and probably have always had the default rate. If not then where has the £158m come from? Their post above says they released only £0.9M, which is a small fraction of the amount that was available to be matched today.
How much more than £158m could they have matched if they'd allowed the market to determine the rate rather than dictating it? I'd personally have invested enough that my RateSetter total would be more than double its current total, and perhaps even triple. Maybe they'd even have been able to get the processing up to date....
You describe the competition for rates in the market as though there is only a very limited amount of RYIs and those offering money are competing to be matched to the handful of loans being sold. That's not what everyone else seems to think is happening... instead, RateSetter are artificially limiting the amount that gets matched on the marketplace, and seem to be doing so in a manner intended to reduce rates rather than to increase how fast RYIs can be processed.
Given that there are plenty of people seemingly happy to continue lending at their so-called "going rate" or even lower(!), I can't say I blame RateSetter for taking advantage of it, but that is definitely not the same thing as "continuing to deliver as many requests as possible every day".
You have misunderstood me. There are obviously a lot of loans being RYI'd and there are insufficient funds on offer at the right rate, which is why there is a queue. The platform is very opaque so I doubt that either of us really understand what is going on. However I am assuming that the RYIQ operates just like a borrower queue. Each loan being RYI'd will be bought in the market by a lender offering a matching rate. The lending amounts will be mostly funds put back on the market when a borrower repays. Lenders paying attention will have set their required rate high so will not be matched but the £158m shows that there must be lots of lenders who are in the market at the default rate. I don't think that RS are "artificially limiting the amount that gets matched" as the majority of loans being sold out of the RYIQ will be at the default rate and will only be matched with lenders funds offered at that rate. RS are not "taking advantage", it is just the market operating as designed. A loan which pays the RS investor 3% can only be sold to a lender who is happy with 3%, there may be offers at 5% or more but they will not be matched. The market cannot "determine the rate" for existing loans.
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Post by RateSetter on Dec 14, 2020 17:14:25 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Dec 14, 2020 17:30:07 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you. it would seem given all loans in the 1 year are 'suddenly' due on the 16th of December (at least for me and some others on other threads) that this might be linked to either a mega repayment or metro deciding to clear it out. maybe I am wrong though. I am not sure what would stop releases today other than they can not cope with the repayments?
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Post by vidusi on Dec 14, 2020 17:53:06 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you. Typical Ratesetter.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Dec 14, 2020 18:22:07 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you. Typical Ratesetter. this is the first time since covid started they didn't do releases. not really typical
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Post by vidusi on Dec 14, 2020 18:37:00 GMT
this is the first time since covid started they didn't do releases. not really typical How do you work that out? Their have been times when the queue hasn't moved.
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aju
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Post by aju on Dec 14, 2020 18:54:38 GMT
this is the first time since covid started they didn't do releases. not really typical How do you work that out? Their have been times when the queue hasn't moved. The queue not moving and RS not actively releasing are 2 different things. Up til now I like beagle am confident that RS has not stopped releases on purpose or for that matter as a result of a big either. The long time things spend on the early dates are because the sheer value and volume of release requests has meant that it has seemed like things are stuck. I've been monitoring weekly and daily figures for all my accounts and I can confirm that the RYI during the week has always been reducing. Bear in mind that there are some key players on RS and other P2P systems I guess that have very large sums of money invested sometimes in the millions i'd think. Just look at some of the players in star dust 's lists we have all contributed to where they are listed in blocks of a 1000. Its just a waiting game i'm afraid. The changes that RS ned to make is probably functional and across the RYI parts of the systems and cannot be changed for improvements without taking steps to ensure no issues affect us as lenders.
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Post by vidusi on Dec 14, 2020 19:05:19 GMT
How do you work that out? Their have been times when the queue hasn't moved. The queue not moving and RS not actively releasing are 2 different things. Up til now I like beagle am confident that RS has not stopped releases on purpose or for that matter as a result of a big either. The long time things spend on the early dates are because the sheer value and volume of release requests has meant that it has seemed like things are stuck. I've been monitoring weekly and daily figures for all my accounts and I can confirm that the RYI during the week has always been reducing. Bear in mind that there are some key players on RS and other P2P systems I guess that have very large sums of money invested sometimes in the millions i'd think. Just look at some of the players in star dust 's lists we have all contributed to where they are listed in blocks of a 1000. Its just a waiting game i'm afraid. The changes that RS ned to make is probably functional and across the RYI parts of the systems and cannot be changed for improvements without taking steps to ensure no issues affect us as lenders. The thing that bugs me is that Ratesetter always seem to fall short on the information that they provide to investors. Maybe if there were more upfront then there would be less RYIs.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Dec 14, 2020 19:31:33 GMT
this is the first time since covid started they didn't do releases. not really typical How do you work that out? Their have been times when the queue hasn't moved. I work it out by them releasing funds daily. Queue not moving can mean someone with more money infront of you took all the cash.
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bt
Sir Bufton Tufton, Jean Paul Sartre Zippy, Bungle, Jeffrey Archer Andre Previn and the LSO Hello
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Post by bt on Dec 15, 2020 10:12:46 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you. Anyone else find it odd that Ratesetter have announced this on this forum, but not in an email to all (RYI) investors, or via a notice on the web site ?
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liso
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Post by liso on Dec 15, 2020 10:16:42 GMT
Good afternoon. Processing of investment releases has been temporarily paused to allow us to undertake technical work on the loan settlement process which should help speed up delivery of release requests. The technical work is taking place this week, following which delivery of release requests will recommence. Our Investor Services team are at invest@ratesetter.com if you need to contact us. Thank you. Anyone else find it odd that Ratesetter have announced this on this forum, but not in an email to all (RYI) investors, or via a notice on the web site ? Yes. Very odd
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
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Post by johnt on Dec 15, 2020 10:30:45 GMT
Anyone else find it odd that Ratesetter have announced this on this forum, but not in an email to all (RYI) investors, or via a notice on the web site ? Yes. Very odd Almost as if they don't want people to know what they're up to but are putting it somewhere so that they can say they were transparent.
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