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Post by Deleted on Jul 16, 2020 20:38:57 GMT
Not sure I understand how you've gone backwards in the queue. Worth a complaint I'd have thought. I think we've established that once you get to the front of the queue it ceases to be a simple queue and becomes more of a pool. Some loan parts will be held up presumably because of payment processing and suchlike, other delays might be connected with how RS untangle the different rates that all these loans are at. I'd missed the pooling idea. Nevertheless, it doesn't make sense to display a number of requests in front of people who have already reached the front of the queue. Payment processing only accounts for one day's delay, not well over a week. The borrower and lender rates are not linked, so I don't see why this would cause issues and certainly not the length of delays we're seeing (after first release).
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Post by p2pinvestor1 on Jul 17, 2020 15:27:38 GMT
I am a new member to this forum and joined recently as I am still waiting for my investment to be released from Access account which I requested for on the 18th March.
There are some useful discussions I have read here tracking RYIs. Does anyone know if the investments released are from loans paid back or from RateSetter selling parts of their loan book to institutions?
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chris1200
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Post by chris1200 on Jul 17, 2020 15:31:03 GMT
I am a new member to this forum and joined recently as I am still waiting for my investment to be released from Access account which I requested for on the 18th March. There are some useful discussions I have read here tracking RYIs. Does anyone know if the investments released are from loans paid back or from RateSetter selling parts of their loan book to institutions? As far as I'm aware, neither. It's basically other retail investors 'buying' them off you. Edit: To add some further detail. The first option you mention (loan repayments) are treated differently; you will see these coming into your account irrespective of your RYI request (and, if you withdraw them rather than re-investing, your RYI request amount will decrease accordingly). As for selling off the loan book to institutions, as far as I'm aware this only happens with bad loans for which the provision fund has already paid out.
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Post by RateSetter on Jul 17, 2020 16:05:08 GMT
Good afternoon everyone. Today we have delivered £0.4m, and the full update follows below:
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Post by p2pinvestor1 on Jul 17, 2020 16:14:06 GMT
Thanks for your quick reply Chris1200. As far as I am aware, RateSetter are closed to new customers so I guess the retail you mentioned 'buying' the loans for investment release are existing customers? So either they are adding more funds or their monthly repayments are being used to reinvest in these loans. So what would happen if there is no one willing to take on a new loan?
Why would RateSetter not think about selling off parts of their loan book to institutions before they go bad? At least that would expedite the RYIs. Maybe in the current climate there are no takers or want a heavy discount. Metro could be one but news articles seemed to suggest they were not interested in their loan book. RateSetter claim they are releasing £2.4-4.5M every week but the pace at which the queue position is moving is very slow and, to me doesn't match the amounts being released unless investors had £100ks in here.
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ceejay
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Post by ceejay on Jul 17, 2020 16:20:12 GMT
Thanks for your quick reply Chris1200. As far as I am aware, RateSetter are closed to new customers so I guess the retail you mentioned 'buying' the loans for investment release are existing customers? So either they are adding more funds or their monthly repayments are being used to reinvest in these loans. So what would happen if there is no one willing to take on a new loan?Why would RateSetter not think about selling off parts of their loan book to institutions before they go bad? At least that would expedite the RYIs. Maybe in the current climate there are no takers or want a heavy discount. Metro could be one but news articles seemed to suggest they were not interested in their loan book. RateSetter claim they are releasing £2.4-4.5M every week but the pace at which the queue position is moving is very slow and, to me doesn't match the amounts being released unless investors had £100ks in here. Simple. You get to keep the loan(s) until they complete naturally, which was always the deal with P2P. And, yes, RYIs are almost certainly being overwhelmingly funded by kind investors who haven't changed their settings to stop reinvestment.
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iRobot
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Post by iRobot on Jul 17, 2020 16:23:52 GMT
Good afternoon everyone. Today we have delivered £0.4m, and the full update follows below: Well that's .... erm .... can't quite think of the word .... hang on a sec .... let's see .... Lower than the previous low of £2.8m Lowest weekly figure in the list so far Less than half as much as the highest figure in the list There's got to be a word or phrase that encapsulates all that .... "Reality of the situation", maybe?
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chris1200
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Post by chris1200 on Jul 17, 2020 16:32:44 GMT
Normally I notice a big pile of money looking to get matched in the A/P/M market at the beginning of the day at around 3%/3.5%/4%, and then it's all hoovered up by the end of the working day, with the 'going rate' way higher. Today (as of now, 5:30pm), there's still £600k sat there at 3%. Why would RS not be matching this? I ask because I'm assuming at least some of this money is our RYI requests...
(I think others have probably posted about this before - tried to find relevant posts, but wasn't able to, so apologies if repetitive)
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chris1200
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Post by chris1200 on Jul 17, 2020 16:42:24 GMT
Thanks for your quick reply Chris1200. As far as I am aware, RateSetter are closed to new customers so I guess the retail you mentioned 'buying' the loans for investment release are existing customers? So either they are adding more funds or their monthly repayments are being used to reinvest in these loans. So what would happen if there is no one willing to take on a new loan? Why would RateSetter not think about selling off parts of their loan book to institutions before they go bad? At least that would expedite the RYIs. Maybe in the current climate there are no takers or want a heavy discount. Metro could be one but news articles seemed to suggest they were not interested in their loan book. RateSetter claim they are releasing £2.4-4.5M every week but the pace at which the queue position is moving is very slow and, to me doesn't match the amounts being released unless investors had £100ks in here. ceejay has already responded to the first para. Re the second para, you make this sound rather more simple than it is. Firstly, selling off its loanbook is essentially RS gradually exiting the market. This is its whole business, so it would be unlikely to sell off performing loans unless it was shutting down. Secondly, selling some of the loanbook wouldn't be likely to resolve much of the problem for a few reasons: As you suggest, it's highly unlikely that anyone would take them without a haircut in the current climate. And even if this magically could happen, unless RS sold their entire loanbook and ceased operating, this wouldn't actually resolve the liquidity situation because the mis-match of supply and demand would still exist (likely, it might get even worse given only the loans that couldn't be sold would remain). So maybe you could get a bit of your money out, but definitely not all - and the bit that remains might be even harder to get out. There are a few other reasons it's unlikely, but that'll do. On your final sentence, some investors do have £100ks in here (and perhaps even more). You can see this in the tracking thread - and that's just the people who've told us. I wouldn't be surprised if some investors have over a million in there.
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adrian77
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Post by adrian77 on Jul 17, 2020 16:53:10 GMT
disappointing - hopefully this downward trend won't continue next week...
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puddleduck
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Post by puddleduck on Jul 17, 2020 17:13:24 GMT
disappointing - hopefully this downward trend won't continue next week... Long term, the only way for the trend to go is downwards, as Ratesetter is closed to new investment the loan book is shrinking, so the pool of repayments will also drop.
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Post by Deleted on Jul 17, 2020 18:10:56 GMT
Long term, the only way for the trend to go is downwards, as Ratesetter is closed to new investment the loan book is shrinking, so the pool of repayments will also drop. Yes, *BUT*, the monetary sizes of the RYI requests will be reducing by a proportionate amount, as the loan book shrinks. For example, my 5Y portfolio has reduced by 20-30% since March, purely from amortization and early/PF repayments. EDIT: I made myself curious, so did a few calcs, the reduction is very close to 30%
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Post by p2pinvestor1 on Jul 17, 2020 19:15:02 GMT
Thanks for your reply chris1200 and ceejay. I appreciate the points you make.
I had just assumed that RateSetter would move out from the P2P lending considering that they were entertaining a bid from Metro who are a liability generating business.
However even if that happens they still need to manage their current loan book. As you rightly pointed out selling off the loan book piecemeal probably would make matters worse as atleast the interest generated by it would offset bad loans.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Jul 17, 2020 19:32:18 GMT
Going by the increased number of 5* ratings on Trustpilot they may have started lending the money out instead of RYIs. They never stopped just tightened risk assessments and credit views. don't forget they have contractual lending to do too.
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wuzimu
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Post by wuzimu on Jul 17, 2020 19:37:03 GMT
Pieces of the Jigsaw The RYI for access accounts only moved by 27 places this week, inc cancellations and repaid loans....yet 5 yr moved nearly 200 places..... The loan book is repaying at a rate of about £45m a month I estimate using RS figures ~50% of loan book is RYI queued and those people will presumably be withdrawing repayments as they come in. Which means ~£22m /month is available for RYI, whereas in the last month RS allocated ~£13m for this purpose.
I conclude: 1. RS are channelling about 50% of the funds returned from loan repayments to meeting RYI requests.
2. The other 50% is funding new lending. 3. Of the 50% that is going to meet RYI requests clearly most of it is not going to the access market. Most is going to the 1 & 5 yr markets. 4. The reason for that is obvious.... the effect of filling RYI in 1 & 5 yr markets while still lending into access, means that
a. RS lower their cost of borrowing by possibly 2-4% (the difference between current access and historic 5 yr rates) b. RS charge the 1.5% and 0.3% fee on the RYI for those markets.
As we all know, unless you are very near the front of the access markets queue...you're in for the ride so get comfy and God bless
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