sb
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Post by sb on Apr 25, 2020 10:49:42 GMT
No one has a clue how much is in the RYI queue. Randomly picking numbers out of thin air is about as useful as using a chocolate teapot. The best way of assessing all this is to just monitor the RYI request tracker thread. RS knows exactly how much is in the RYI queue. 200-400m is a guess based on data published on the RS website and from the RYI tracker thread. 10-15k per a request and around 25k requests in the queue. It would be in an RS interest to publish the queue size if it is much smaller.
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Post by Badly Drawn Stickman on Apr 25, 2020 11:11:23 GMT
No one has a clue how much is in the RYI queue. Randomly picking numbers out of thin air is about as useful as using a chocolate teapot. The best way of assessing all this is to just monitor the RYI request tracker thread. RS knows exactly how much is in the RYI queue. 200-400m is a guess based on data published on the RS website and from the RYI tracker thread. 10-15k per a request and around 25k requests in the queue. It would be in an RS interest to publish the queue size if it is much smaller. Theoretically your guess is dreadful. it is the equivalent of saying somebody is between 3 foot and 6 foot tall, based on their shoe size. Any other observations you make will be judged by that standard. Your annoyance would be more reasonably aimed at those who are making requests in the 100s of thousands with a complete disregard for anybody else. RS are clearly trying hard to meet demand, arguably the time has now arrived for them to adopt a pooling system to give a fairer outcome for all.
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alanh
Posts: 556
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Post by alanh on Apr 25, 2020 11:20:40 GMT
No one has a clue how much is in the RYI queue. Randomly picking numbers out of thin air is about as useful as using a chocolate teapot. The best way of assessing all this is to just monitor the RYI request tracker thread. RS knows exactly how much is in the RYI queue. 200-400m is a guess based on data published on the RS website and from the RYI tracker thread. 10-15k per a request and around 25k requests in the queue. It would be in an RS interest to publish the queue size if it is much smaller. Its the same everywhere else. No platform is disclosing how big the exit queue is. I doubt you will get this information from RS or anyone else.
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Post by p2plender on Apr 25, 2020 11:50:02 GMT
I think people are peeved as they thought they were lending short term and at worst it may take a few weeks if there was a rush. Unfortunately for them, RS was merely pooling all the cash and lending at the best rate achievable (for them) with money lent at 3%ish....
Never again for many!
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Post by lingield on Apr 25, 2020 12:32:19 GMT
My analysis is as follows:
1. the equity holders will be doing everything that they can to preserve their value. There was rumour that earlier this year that RS could be listed with a market value of £300 million. Whatever today's value is, clearly that is a significant amount of value to lose. These are the people who are in control, but I assume that they will be doing everything that they can to preserve their equity value - even if it means that their eventual exit is delayed;
2. it is unlikely that there will be any value in the equity if ordinary investors lose money, it follows therefore that the those in control have every incentive to protect the ordinary investors;
3. that said these are clearly challenging times and it is difficult to predict what will happen next;
4. if ordinary investors have to take a hit, my understanding is that the process is as follows:
(a) first, one off losses are made from the provision fund; and
(b) second, if RS reasonably believes that the PF will be unable to meet future defaults then RS can implement a 'stabilisation period', this may mean: (i) a pro rata reduction of the interest rate receivable by the investors (with the difference being paid into the provision fund); or (ii) if that is not sufficient a reduction of capital repayments receivable by the investors (with the difference being paid into the provision fund) - this is essentially a "pooling" or loss sharing mechanism.
5. RS/equity holders will be trying to do everything that they can to avoid getting to (b), and particularly (b) (ii) because this will hit their equity value, so the concept of "pooling" is unlikely to be utilised (if possible) or likely to be delayed for as long as possible because it will hit the equity value of the business.
I do not understand the lack of transparency, but part of the rationale will be ensuring that they have all options available to them to prevent RS moving to 4 (b) above, I suspect that RS are analysing their metrics on a day to day basis and utilising the various options available to them (evidence of this is paying out the 'expensive' 5 year investors ahead of the access investors).
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sb
Posts: 166
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Post by sb on Apr 25, 2020 13:14:53 GMT
RS knows exactly how much is in the RYI queue. 200-400m is a guess based on data published on the RS website and from the RYI tracker thread. 10-15k per a request and around 25k requests in the queue. It would be in an RS interest to publish the queue size if it is much smaller. Theoretically your guess is dreadful. it is the equivalent of saying somebody is between 3 foot and 6 foot tall, based on their shoe size. Any other observations you make will be judged by that standard. Your annoyance would be more reasonably aimed at those who are making requests in the 100s of thousands with a complete disregard for anybody else. RS are clearly trying hard to meet demand, arguably the time has now arrived for them to adopt a pooling system to give a fairer outcome for all. I wouldn't die for this number but I think it is a reasonable guess. Best I have. You are more than welcome to improve on it. It is good enough to set expectations that it could take many months before we see our money back. RS's "over a month" is technically correct but it could make a wrong impression that it would take 1-2 months. I am not annoyed but only trying to help. My expectation was always that in a situation like this liquidity we would dry out and the RS accounts would become as illiquid as the underlying loans.
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
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Post by johnt on Apr 25, 2020 13:15:10 GMT
Interesting that Ratesetter have reopened for new loans. Shouldn't they be servicing the RYI first? You're joking? Where are they going to get the money from to loan them? That's our money!
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Post by Deleted on Apr 25, 2020 13:23:09 GMT
Interesting that Ratesetter have reopened for new loans. Shouldn't they be servicing the RYI first? You're joking? Where are they going to get the money from to loan them? That's our money! I wondered why the RYI figures for the last couple of days were so much lower.
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alanh
Posts: 556
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Post by alanh on Apr 25, 2020 13:46:44 GMT
They have continued to lend since the start of the crisis. No change there. They have just "materially reduced" it. See the very first post on this thread.
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Post by Badly Drawn Stickman on Apr 25, 2020 13:49:29 GMT
Theoretically your guess is dreadful. it is the equivalent of saying somebody is between 3 foot and 6 foot tall, based on their shoe size. Any other observations you make will be judged by that standard. Your annoyance would be more reasonably aimed at those who are making requests in the 100s of thousands with a complete disregard for anybody else. RS are clearly trying hard to meet demand, arguably the time has now arrived for them to adopt a pooling system to give a fairer outcome for all. I wouldn't die for this number but I think it is a reasonable guess. Best I have. You are more than welcome to improve on it. It is good enough to set expectations that it could take many months before we see our money back. RS's "over a month" is technically correct but it could make a wrong impression that it would take 1-2 months. I am not annoyed but only trying to help. My expectation was always that in a situation like this liquidity we would dry out and the RS accounts would become as illiquid as the underlying loans. Arguably at a £200 million spread, you have simply backed every horse in the race to win. Not what I call a reasonable guess.
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alanh
Posts: 556
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Post by alanh on Apr 25, 2020 14:25:12 GMT
They have continued to lend since the start of the crisis. No change there. They have just "materially reduced" it. See the very first post on this thread. No. They closed their book to new borrowers. Now they have opened it again. Where are you seeing this?
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alanh
Posts: 556
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Post by alanh on Apr 25, 2020 15:06:26 GMT
Where are you seeing this? Observation. RS stated that they were closed to new borrowers. Now they are taking new applications. Observation of what though? They never stopped lending in the first place, just reduced it. Where did they ever state that they were closed to new borrowers? This is from their news release from page 1 of this thread: "We have taken action to prioritise these requests by materially reducing lending while taking into account ongoing obligations on the borrower side" "
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Post by james91 on Apr 25, 2020 15:07:31 GMT
They do seem to have opened the online application again. Previously, if you tried to borrow, you were greeted with a message saying they were closed to new applications - whereas now it lets you proceed to a quote. Seems like a strange move.
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alanh
Posts: 556
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Post by alanh on Apr 25, 2020 15:21:33 GMT
Observation of what though? They never stopped lending in the first place, just reduced it. Where did they ever state that they were closed to new borrowers? This is from their news release from page 1 of this thread: "We have taken action to prioritise these requests by materially reducing lending while taking into account ongoing obligations on the borrower side" " Previously, if you tried to borrow, you were greeted with a message saying they were closed to new applications - whereas now it lets you proceed to a quote. Ah I see. Not sure what that means then. Maybe they are increasing lending a bit or maybe they are keeping it at the reduced levels but letting a few new borrowers in.
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spiral
Member of DD Central
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Post by spiral on Apr 25, 2020 15:31:14 GMT
Out of interest and just to see, I just attempted a quote for less money than I have invested with them and got refused. . Oh well I'll just have to sell out.
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