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Post by diversifier on Jun 30, 2020 22:20:02 GMT
welcome improvement to yesterday ! And people seems to forget on the calculation (and it doesnt seems that RS is communicated much as they should/could), it the fact that normal reimbursement of loans have give Lenders back at least minimum 10% in the last 3 months, and from what i have read on this forum, sometimes it is even more, so actually, considering that RS portfolio was 850 M in March so 85 M was give back to lenders since lockdown. Total is then : 62 M +25 M cancelled + 85 M repayments = 172 M Not sure why RS is not communicating on these figure to show their effort from a lender prospective. You are adding apples, oranges and figs there. The £62M is cash in hand. The £85M is money in their investment account, not cash in hand, the difference being *the whole point* of the liquidity crisis. If you want to know how much investors have received cash in hand, it’s the change in Assets Under Management - £850m in March to £773m now = £77m. The £25m isn’t money that investors received at all, its money that they gave up on trying to move from investment to cash in hand. If you are trying to represent how much of investors original request for cash in hand has been satisfied, assuming that the £25m cancelled should be subtracted from the “10% of total assets originally requested”, then I think you’re sadly mistaken. What you are missing is that in the last 3 months, while some people have cancelled RYI, Others have continued to RYI far beyond the original peak. It’s difficult to know exactly how many, but we can estimate: current repayment “cashflow” is £50m per month, of which £20m goes to RYI, £20m new loans, leaving £10m equals repayments that people are withdrawing daily. So, roughly 1/5th of all customers are in drawdown mode, which would imply £155m total RYI queue outstanding. That’s at the end of May, on top of the £77m that had already been taken out. In June, more RYI still will have been requested. The key point is that the RYI rate, even after peak, continues to exceed the £20m monthly RYI payout. The queue is still growing, quite fast, and will continue to do so, rather than shrinking as money is returned. Because of that, the speed at which the queue is being serviced is also decreasing, which is driving feedback. Essentially, you always need to keep the RYI queue below about 5% otherwise it starts to increase exponentially, and above 10% it’s uncontrollable and game over. We passed that point, so unfortunately, it’s now mathematically inescapable. The queue will continue to grow until RYI stalls entirely, *even if the economy returned to normal overnight.* The £25m cancellation is too small to make a difference to this.
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Post by RateSetter on Jul 1, 2020 16:25:37 GMT
Good afternoon all. Today we have delivered £0.6m. The full update is below:
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chris1200
Member of DD Central
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Post by chris1200 on Jul 1, 2020 16:30:09 GMT
Onto 13 March for Access! A joyous day!
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savernake
Member of DD Central
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Post by savernake on Jul 1, 2020 16:30:32 GMT
Good afternoon all. Today we have delivered £0.6m. The full update is below: Hooray! The Access queue has finally cleared requests from the 12th March! Onwards to the next 'peak' on the 16th!
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Jul 1, 2020 22:55:50 GMT
i can't believe it. the 13th. I wonder how big the 13th is. great to see that they are actually delivering. Well done Ratesetter. i think this is why metro is buying you. you operate in dire conditions
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Post by RateSetter on Jul 2, 2020 18:41:20 GMT
Good evening all. Today we have delivered £1.3m 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 Jul 2, 2020 18:51:39 GMT
Good evening all. Today we have delivered £1.3m and the full update is below: 1.3 million is great. a better week than the last few - genuine surprise. rabbit out of a hat
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starfished
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Post by starfished on Jul 2, 2020 19:16:07 GMT
I expected it to always be a bit higher at the start of each month due to repayments coming in (and being relent out by those staying)?
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crowbar
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Post by crowbar on Jul 2, 2020 19:23:09 GMT
Ratesetter staff are doing a great job all considering. The tech and payments infra is also holding up quite well.
Shame about the bad structuring and resulting illiquidity/queues.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Jul 3, 2020 0:45:23 GMT
Ratesetter staff are doing a great job all considering. The tech and payments infra is also holding up quite well. Shame about the bad structuring and resulting illiquidity/queues. How do you mean better structuring would make it more liquid? Do you mean auto reinvestment?
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Post by stevepn on Jul 3, 2020 4:45:05 GMT
i can't believe it. the 13th. I wonder how big the 13th is. great to see that they are actually delivering. Well done Ratesetter. i think this is why metro is buying you. you operate in dire conditions Undertakers also thrive in dire conditions.
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crowbar
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Post by crowbar on Jul 3, 2020 8:26:35 GMT
The fact there is no market pricing meaning a huge imbalance of withdrawals vs new money. Why on earth would somebody lend money at a tiny interest rate today? Should be discounted to par. And then there's the issue that 5Y year investors can pull out cash much quicker than Access investors.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Jul 3, 2020 9:33:20 GMT
The fact there is no market pricing meaning a huge imbalance of withdrawals vs new money. Why on earth would somebody lend money at a tiny interest rate today? Should be discounted to par. And then there's the issue that 5Y year investors can pull out cash much quicker than Access investors.
It can't work though, you can't have your high interest returns and credit worthy borrowers with a buoyant provision fund. either rates are low as cost of funds needs to be sustainable or you underwrite at greater risk to cover the cost of funds and operating costs. if they increase risk now, yes the loan book grows and the danger too. Better to be prudent and not lend than risk loss. This is why p2p in times of crisis can't sustain as the investor demand for ROI due to risk increases and the borrower profile is suddenly not worthy as such contraction. if you want a higher rate then ratesetter can drop the provision fund (a major security tool) to incentivise with better returns... and suddenly capital is lost and we are cap in hand. 5 years can pull out faster likely due to the funds not reinvesting but can be diverted to holding as such the queue drops faster as more organic repayments take place.
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chris1200
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Post by chris1200 on Jul 3, 2020 9:48:22 GMT
5 years can pull out faster likely due to the funds not reinvesting but can be diverted to holding as such the queue drops faster as more organic repayments take place. Isn't the situation the exact opposite of this? For Access accounts, you have to know the (not very complicated, but still a bit complicated) way to have your settings to get your hands on repayments. So probably more people who don't know how to do it and are having their repayments reinvested involuntarily (= provides funds for RYI requests). For 5-year accounts, you can set repayments to go to holding account, so fewer involuntary reinvestments (= less funds for RYI requests). As has been pointed out several times, the 5-year queue is not necessarily moving any 'faster' (in the sense of amount of money repaid) than the Access queue. It may just look that way because the volume of requests is so much higher for Access. This is all just supply and demand in each market.
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chris1200
Member of DD Central
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Post by chris1200 on Jul 3, 2020 11:03:23 GMT
I would cancel my RYIs if RS introduced an opption in Access, Plus and Max that allows you to set repayments to go to the holding account. Interesting. Can I ask why? (Given that you, I'm assuming, know how to achieve this indirectly and I'm not sure why being able to access your money more easily would encourage you to... not access your money)
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