jlend
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Post by jlend on Mar 19, 2020 10:28:31 GMT
The stats have always been available on the website
142 Live borrowers
83.74% Average utilisation
£22,757,426 Loans outstanding
£27,177,766 Total available facility
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morris
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Post by morris on Mar 19, 2020 12:31:07 GMT
Does anyone have a view on whether investors in the ISA are in any better or worse position than investors in the classic account, as ISA money is invested in fixed term bonds for 12 months.
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Post by nesako on Mar 19, 2020 13:20:58 GMT
The stats have always been available on the website 142 Live borrowers 83.74% Average utilisation £22,757,426 Loans outstanding £27,177,766 Total available facility This is stats just before everyone started withdrawing (5h March data). It also indicates there was over 4.4M liquidity "buffer" at the point, so would be interesting to see what are the current figures as of today. Available facility should be much lower now.
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treeman
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Post by treeman on Mar 19, 2020 13:32:07 GMT
"Yes, yes, but will I get my 'Bonus'?" Bonus received and withdrawn this morning.
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jlend
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Post by jlend on Mar 19, 2020 13:40:04 GMT
Does anyone have a view on whether investors in the ISA are in any better or worse position than investors in the classic account, as ISA money is invested in fixed term bonds for 12 months. Certainly the interest rate is higher on the ISA and you get paid the higher rate even if your money is not actually on loan and just sitting in the ISA wrapper. Also they prioritise lending money via non ISA accounts vs the ISA money. At least that is what they originally said. So yes I would say the ISA money is slightly better positioned right now. It is still locked up in the event of a liquity event so you are not guaranteed to get it back at the end of the 12 months as I understand it.
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alender
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Post by alender on Mar 19, 2020 16:26:12 GMT
This is stats just before everyone started withdrawing (5h March data). It also indicates there was over 4.4M liquidity "buffer" at the point, so would be interesting to see what are the current figures as of today. Available facility should be much lower now. Does anyone know if people who placed notice on their funds within the previous 30 days before the liquidity event have been able to/or will be able to withdraw these funds, it might explain where the buffer has gone.
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Post by overthehill on Mar 19, 2020 17:01:03 GMT
I'm not 100% sure I understand your question but I'll make a statement which may or may not answer it. My investment setting was 'do not reinvest repaid money' and it was changed and locked by GS to 'reinvest capital+interest' therefore I cannot withdraw any money already invested. I was able to withdraw money not already invested.
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alender
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Post by alender on Mar 19, 2020 17:22:19 GMT
I'm not 100% sure I understand your question but I'll make a statement which may or may not answer it. My investment setting was 'do not reinvest repaid money' and it was changed and locked by GS to 'reinvest capital+interest' therefore I cannot withdraw any money already invested. I was able to withdraw money not already invested.
Thanks for the answer.
Sorry I am getting confused between different platforms, you are right you just change your investment setting to "do not reinvest repaid money and the money" will be returned in the next 30 days, In my case it was changed from "Reinvest principal only" to "reinvest capital+interest". I guess the 4.4M liquidity "buffer" was withdrawn between the 5th Mar and the Liquidity Event and/or went on new loans.
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Post by morriscat on Mar 21, 2020 6:23:06 GMT
I guess investors panicking has contributed to this event, an essentially self-centered response. Every man for himself.
This has not helped the situation, so can I ask perhaps we can form a common opinion or objective here?
Here is my suggestion - GS should pay the interest every month, at least.
Then we don't care about accessing the capital for now, right?
Let the capital recycle which helps GS's position.
I already sent an email requesting this.
If everyone emails to request interest payments are restored, with no further demands it will be much easier for everyone.
The provision fund works collectively - so we might aswell think as a group. We're all in the boat.
If we get the interest every month, nothing else matters for now.
When they do allow drawdowns, they should limit people to 20% or similar to begin with.
This will put a stop to individualistic behaviour demanding the whole sum, an unreasonable request right now, and no different to people fighting over bog roll in the supermarket.
Please let's take a common approach and give GS some space so they can pay the interest. Send that email!
Cheers everyone.
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rocky1
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Post by rocky1 on Mar 21, 2020 7:17:53 GMT
and maybe a request to all the scheming borrowers across p2p to pay their debts on time to keep things going might help. this situation is going to be blamed for a heck of a lot of defaults that will be coming our way in the near future.
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Post by Ace on Mar 21, 2020 18:21:27 GMT
Security backed loans are now temporarily worthless as the government has stated you cannot evict anyone or charge additional fees for non payment. These generalised statements are getting a bit out of hand. In this case it would obviously depend on what the security was.
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Post by morriscat on Mar 22, 2020 5:36:21 GMT
Any defaults would depend upon the platform. I wouldn't generalise across p2p:
GS for example have "Advanced Data Integration’ which is designed to provide real-time access to the banking and accounting records of its borrowers, and spot emerging risks. What does this actually mean? Growth Street requires their borrowers to allow them to plug into their accounting systems, which gives them real time access to information such as revenues, profits, and cash position."
"A protection fund exists which is designed to cover losses from company defaults. The protection fund is currently well funded versus Growth Street’s 12 month expected loss estimate."
Also this you might not have known: "The owners of Growth Street have had to top up the provision fund regularly over the last few years. Their head of risk attributes this to some specific mistakes made in their early lending decisions, which has now been rectified. However in late 2019 Growth Street decided to take 2 new large defaulted loans out of the investment pool and put it onto its own balance sheet, to protect its investors from loss."
The two loans worth more than £1m each had entered default. The two loans that defaulted were a manufacturing firm and a construction equipment rental business. This is about 1% of the portfolio.
A reminder: "The Liquidity Event was not called as a result of loan book performance, as this continues to perform at a satisfactory level." It was caused by the ladies who yelled and tried to grab their cash quick. Clearly the credit line to borrowers needs to be maintained as its cessation it could topple a company. Once again we should not request capital but insist on the interest.
In general, communication I have from other platforms indicates P2P remains healthy, and loan demand is strong across platforms. Interest rates are rising which is all good news.
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Ukmikk
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Post by Ukmikk on Mar 22, 2020 10:21:35 GMT
Panic withdrawal is the investing equivalent of panic buying. It's good to see platforms pro-actively managing this, something the supermarkets have conspicuously failed to do.
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Greenwood2
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Post by Greenwood2 on Mar 22, 2020 11:25:14 GMT
Panic withdrawal is the investing equivalent of panic buying. It's good to see platforms pro-actively managing this, something the supermarkets have conspicuously failed to do. It's very easy for a financial company to just stop withdrawals online, turn off an option and it's done. It's pretty difficult for supermarkets to stop shoppers shopping, I think they should limit the amount people can buy, but that is difficult to judge if you don't know how many are in each household and if several members of the same household shop separately you don't know how much they have bought collectively. Ration cards worked well in the last war, but I hope this over reaction by shoppers won't last long enough to necessitate that!
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Post by lotus_eater on Mar 22, 2020 12:20:54 GMT
Probably a strange question, but does anyone happen to have a copy of the Growth Street T&c's prior to February 19th 2020? As many may remember, GS changed their T&c's on that date. What I'm specifically interested in is the "7. Rollovers and Liquidity" section.
I'm curious to know if the following parts were changed or added (particularly 7.4.1):
7.4. Whilst we work to rectify the Liquidity Event, we will continue to fund borrower drawdown requests
with funds on the platform and you agree that we can:
7.4.1. switch your reinvestment settings on (if they are not on already), so all capital and interest
repaid by borrowers is automatically placed into new Lend Orders; and
7.4.2. restrict or remove your ability to cancel open Lend Orders
When I started investing with GS a couple of years back, I'm fairly sure that section wasn't in there. I'm sure I would have remembered it if it was as it really takes away from (what I thought was) my favorite part of GS, namely being able to turn off reinvestment settings and getting capital back within 30 days in most circumstances.
I realize we're all just as stuck in GS for now anyway, but I think if they changed this part of the T&C's on Feb 19th, and then froze everything based on this change less than a month later on 16th of March, it would certainly add to my frustration, especially if someone hadn't logged in to their account between those dates (and therefore not legally been given the chance to accept the new T&C's).
This is the email about the changes from February 5th. _________ Hi there,
In order to more closely align our terms with the risk warnings displayed on our website, following the launch of the new P2P regulations last December, we have made some changes to our terms and Loan Loss Provision (LLP) policy.
Terms: there will be updates to Clauses 6. Loan Loss Provision and 7. Rollovers and Liquidity, which will go live on the 19th February. We have provided a link here for you to have a look.
LLP policy: we have made small updates to align the policy to the risk warnings displayed on the website, which will go live on the 19th February. We have provided a link here for you to have a look.
Don’t worry, you don’t need to do anything, but we are required to let you know. If you have any questions, simply respond to this email or give us a call on 0808 123 1231.
Kind regards,
The Growth Street team
__________
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