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Post by default on Apr 9, 2020 14:44:42 GMT
"As part of our ongoing measures to protect investor returns, we have taken the decision to pause the secondary market while we continue to evaluate the potential impact of Covid-19."
the beginning of the end for FC?
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Post by kazamx on Apr 9, 2020 14:52:26 GMT
Why oh why did they take out the old secondary market.
If they still had it then the whole thing would have sorted itself. People who wanted out NOW could have got out if they offered a big enough discount on their loans. Those looking for a bargain would have bought it. I would be very interested in buying into the market at a 40% discount for example.
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Post by default on Apr 9, 2020 15:19:18 GMT
not wanting to de-rail my own thread but all the changes that FC made were to give them more control of your money. they tried to disguise this as some sort of democratisation, so that most people would be off. nevertheless, even then loans on the secondary market could only be adjusted by +/-0.2%, up to a limit of +/-3.0%, if i recall correctly.
anyway, back the theme of this thread: is pausing the secondary market as sign that FC is heading for administration?
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Post by westcountryfunder on Apr 9, 2020 16:23:38 GMT
anyway, back the theme of this thread: is pausing the secondary market as sign that FC is heading for administration?
Well, I'm no fan of FC these days, in fact I'm just allowing it to run down naturally without using the secondary market. However, I don't see why this is any evidence of impending administration. I see no reason not to take their explanation at face value. I'm reluctant to take the view that every announcement by a P2P platform hides some ulterior motive or manipulative intent on their part. I did chuckle though at one of FC's comments - "The businesses you have lent to are good, creditworthy businesses". I wish!  
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Post by default on Apr 9, 2020 16:43:35 GMT
my thinking on this, for what it's worth, is that FC are using the corona virus outbreak to hide the lack of liquidity in the secondary market. they are also locking in existing investment and thereby ensuring any new investment goes into new loans. in short, they are desperate to avoid any loss of investment. i candidly think they know the end could be in sight. think of it like this: effectively all their loans are now downgraded. that's hardly going to inspire anyone to invest with them.
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Post by kazamx on Apr 9, 2020 16:46:47 GMT
very much doubt it.
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Post by shanghaiscouse on Apr 9, 2020 17:06:45 GMT
I recall they still have £100m cash so I doubt it for now. But there does have to be a big shake out in this industry as funds are headed for the door, and have been for over a year. Lower loans under management means less revenue, and its not like they have ever been cashflow positive. So I believe the way forward is mergers to consolidate loans under management into FC which is the only one with any significant cash to survive the next 6 months and get rid of the admin cost of 2-3 other platforms.
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Post by gadget on Apr 9, 2020 19:04:10 GMT
It's semantics. No loan parts were being sold anyway as far as i could see. Just no investor demand at the moment.
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blender
Member of DD Central
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Post by blender on Apr 9, 2020 20:35:18 GMT
It's semantics. No loan parts were being sold anyway as far as i could see. Just no investor demand at the moment.
Yes, now they are not being sold rather than not selling.
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mikeb
Posts: 1,052 
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Post by mikeb on Apr 12, 2020 15:41:47 GMT
I did chuckle though at one of FC's comments - "The businesses you have lent to are good, creditworthy businesses". I wish! When did they bring that policy in? I missed that! Sign me up! 
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