jlend
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Post by jlend on Mar 27, 2020 17:53:57 GMT
The last email felt like it addressed the FCA compliance rules. It is what it is. Those are the terms. It is important they make those clear warts and all.
I am sure in the background they have/are considering potential actions over the 90 days.
Their equity investors, and their large personal and institutional lenders are likely to have input. Their largest personal lender is also their founder so there is huge skin in the game.
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Post by garreh on Mar 27, 2020 18:25:44 GMT
Their largest personal lender is also their founder so there is huge skin in the game. Interesting, what's your source for that information? I vaguely remember reading someone on this forum that the original founder Greg Carter actually left the company without much explantation. Maybe I misread that though and he does still play some role and or/holding in the company. To stick to the 90 day timescale seems unfeasible given that this is an unprecedented global event. Every market and business is experiencing volatility, so I would personally be happy to have an extension to a year or so. By that point, current life events should of returned to some form of normality and a vaccine should be on the horizon, markets will stabilise and there will be overall more confidence & money potentially being invested to help solve the liquidity issue. That combined with other measures to retain money on the platform whilst simultaneously attempting to reduce the loanbook size by reviewing current contracts would also help. Overall with Growth Street's recent communication it seems to me they are focussing on the Resolution Event without sharing any specifics on what they are actively trying to do to resolve the liquidity issue. That unfortunately isn't particulary encouraging. I do hope they are just forfilling their FCA obligations and have viable solutions as opose to just sitting back and seeing what happens over the next few months naturally.
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jlend
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Post by jlend on Mar 27, 2020 19:15:48 GMT
Their largest personal lender is also their founder so there is huge skin in the game. Interesting, what's your source for that information? I vaguely remember reading someone on this forum that the original founder Greg Carter actually left the company without much explantation. Maybe I misread that though and he does still play some role and or/holding in the company. To stick to the 90 day timescale seems unfeasible given that this is an unprecedented global event. Every market and business is experiencing volatility, so I would personally be happy to have an extension to a year or so. By that point, current life events should of returned to some form of normality and a vaccine should be on the horizon, markets will stabilise and there will be overall more confidence & money potentially being invested to help solve the liquidity issue. That combined with other measures to retain money on the platform whilst simultaneously attempting to reduce the loanbook size by reviewing current contracts would also help. Overall with Growth Street's recent communication it seems to me they are focussing on the Resolution Event without sharing any specifics on what they are actively trying to do to resolve the liquidity issue. That unfortunately isn't particulary encouraging. I do hope they are just forfilling their FCA obligations and have viable solutions as opose to just sitting back and seeing what happens over the next few months naturally. www.growthstreet.co.uk/press/growth-street-announces-new-measures-to-protect-its-borrowers-and-investors-in-light-of-covid-19
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Post by gravitykillz on Mar 27, 2020 21:40:37 GMT
Interesting, what's your source for that information? I vaguely remember reading someone on this forum that the original founder Greg Carter actually left the company without much explantation. Maybe I misread that though and he does still play some role and or/holding in the company. To stick to the 90 day timescale seems unfeasible given that this is an unprecedented global event. Every market and business is experiencing volatility, so I would personally be happy to have an extension to a year or so. By that point, current life events should of returned to some form of normality and a vaccine should be on the horizon, markets will stabilise and there will be overall more confidence & money potentially being invested to help solve the liquidity issue. That combined with other measures to retain money on the platform whilst simultaneously attempting to reduce the loanbook size by reviewing current contracts would also help. Overall with Growth Street's recent communication it seems to me they are focussing on the Resolution Event without sharing any specifics on what they are actively trying to do to resolve the liquidity issue. That unfortunately isn't particulary encouraging. I do hope they are just forfilling their FCA obligations and have viable solutions as opose to just sitting back and seeing what happens over the next few months naturally. www.growthstreet.co.uk/press/growth-street-announces-new-measures-to-protect-its-borrowers-and-investors-in-light-of-covid-19I thought they did the liquidity event a few days ago.
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Post by garreh on Mar 27, 2020 22:33:49 GMT
I thought they did the liquidity event a few days ago. They called it around a week and a half ago. So far we're already around 17% into the Liquidity Event before it reaches a Resolution Event. Time is ticking fast so I hope they annouce measures they are taking to resolve the issue soon.
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jlend
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Post by jlend on Mar 29, 2020 15:19:12 GMT
I would agree When I first read the email I was surprised it didn't contain some additional contingency thinking. Since then I had considered maybe setting out such a stark outcome early would give people time to reflect, then when a compromise solution was offered it would be more warmly received. Hopefully I am not overestimating them. Not sure they contribute here at all? Maybe an invite should be extended. There are actually 11 Growth Street representatives with accounts on the forum. The majority have never posted, and the main poster JamesGrowthStreet hasn't logged in for three years, so possibly doesn't even work there now. Joanna-Growth Street and markejwilliams have both logged in this year, but neither have ever posted. I don't invest here or know anything about the platform, if you know of someone else perhaps suggest they join? In the past GS have said they won't post replies on here due to regulatory compliance rules. I don't think anyone should expect anything in the current circumstances. I did have a sizable sum, but was one of the lenders who sold out before the market locked up.
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Post by morriscat on Mar 30, 2020 15:03:50 GMT
Agree with Chris. Note that any company who is requested to pay back a loan (to GS) will mostly lend that sum from another lender. Robbing Peter to pay Paul. This is not a bad thing and should ensure many GS loans don't go into default.
Question is timing: possibly a resolution event earlier is better, as there is some liquidity from other lenders. Or possibly they should defer it as long as possible, but who knows how the environment might deteriorate later in the year? Such that other lenders slam the window closed. It's hard to call.
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chris1200
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Post by chris1200 on Mar 31, 2020 13:40:58 GMT
I notice non-deployed cash is now up to 1% (c. £110k) - so things are very, very, very slowly moving in the right direction. I only hope they keep doing this by encouraging re-financing and restricting lending until such time as they can re-open with a new queued withdrawal system and avoid a resolution event. Fingers crossed.
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Post by nesako on Mar 31, 2020 14:12:42 GMT
I notice non-deployed cash is now up to 1% (c. £110k) - so things are very, very, very slowly moving in the right direction. I only hope they keep doing this by encouraging re-financing and restricting lending until such time as they can re-open with a new queued withdrawal system and avoid a resolution event. Fingers crossed. Where can you see this?
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chris1200
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Post by chris1200 on Mar 31, 2020 14:28:52 GMT
I notice non-deployed cash is now up to 1% (c. £110k) - so things are very, very, very slowly moving in the right direction. I only hope they keep doing this by encouraging re-financing and restricting lending until such time as they can re-open with a new queued withdrawal system and avoid a resolution event. Fingers crossed. Where can you see this? On the Statistics page, click 'Matching' in the drop-down menu. Or, hopefully this link might work: www.growthstreet.co.uk/investing/matchingFor anyone else who hasn't been monitoring this, this deployment rate got up to 100%, which is obviously representative of the liquidity problem Growth Street found themselves with. Monitoring this number will give us a good idea of the extent of any wind-down in lending that's happening.
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alender
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Post by alender on Mar 31, 2020 16:23:49 GMT
If GS can continue I think investors will feel much more comfortable if interest and loan repayments for loans not rolled over by existing borrowers were paid out to lenders. Does anyone know where these funds are currently going as they are not taking on new borrowers. I hope this is not the 1%.
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chris1200
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Post by chris1200 on Mar 31, 2020 16:27:42 GMT
If GS can continue I think investors will feel much more comfortable if interest and loan repayments for loans not rolled over by existing borrowers were paid out to lenders. Does anyone know where these funds are currently going as they are not taking on new borrowers. I hope this is not the 1%. As I see it, the problem with this is two-fold: 1) You don't solve your liquidity problem. In fact, you specifically keep the platform illiquid by not allowing some spare cash to mount up. 2) As I understand it, our loans are matched to specific borrowers. When they default, the provision fund theoretically kicks in to pay out and this gives the effect of diversity across all loans even though this doesn't exist technically. If you were to allow access to capital and interest, you'd have to provide these proportionately across all lenders, but that's hard to do while we hold specific loans. The only way this can happen, as I see it, is in a resolution event where all the money is divided equally between lenders, regardless of the loans held. As for where the money is going, yes this will be the 1% and - as I've argued above - I think it's best that this amount is allowed to build up.
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Post by jon3001 on Apr 2, 2020 17:07:24 GMT
www.growthstreet.co.uk/investingPersonally I do feel that what I have invested in has been misrepresented. Borrower repayments on 30 days would seem to be the exception rather than the norm (I had assumed 'subject to borrower repayments' meant no late payments/defaults). If many loans really are being repaid within 30 days then this should be an inherently liquid investment and not dependant on other platform investors for liquidity.
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chris1200
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Post by chris1200 on Apr 2, 2020 18:12:36 GMT
www.growthstreet.co.uk/investingPersonally I do feel that what I have invested in has been misrepresented. Borrower repayments on 30 days would seem to be the exception rather than the norm (I had assumed 'subject to borrower repayments' meant no late payments/defaults). If many loans really are being repaid within 30 days then this should be an inherently liquid investment and not dependant on other platform investors for liquidity. This is obviously rubbish for all of us, but I'm afraid what they're doing now was clearly set out in their T&C. I specifically remember reading it and being rather concerned, but I went ahead with my investment knowing that.
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withnell
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Post by withnell on Apr 3, 2020 7:08:22 GMT
Borrower repayments on 30 days would seem to be the exception rather than the norm Sadly not the case - think of it like a remortgage from a 1 year fix - if you stay with the same lender you don't repay the capital then have it returned to you! The underlying Borrower facility is a much longer term The deployment rate is reducing (currently 98.3%) which means they have 1.7% lender cash on account, and that doesn't include their investor's cash. It's a hard time for any business so payback will be slow but they're getting there (this % was over 99% a week or so ago)
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