jlend
Member of DD Central
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Post by jlend on May 4, 2020 10:24:51 GMT
The silicon chip inside my head Gets switched to overload (wasted on many I suspect) Or to quote another one of their No 1 hits... There's screaming and crying in the high-rise blocks It's a rat trap Billy, but you're already caught (I don't think it is that bad...)
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Post by aroominyork on May 4, 2020 10:30:23 GMT
I have £5465 in the one year market at 5.4% due to mature in late July. The site shows £266.18 as "Interest less provision fund contribution". I don't recall seeing that when I last logged in pre-February. Is this new, that they are taking c.10% of interest for the PF? I haven't checked recently but isn't that on the borrowers side?' £5465 x 5.4% = £295.11. I am apparently going to receive 90% of that amount.
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corto
Member of DD Central
one-syllabistic
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Post by corto on May 4, 2020 10:37:21 GMT
I support the interest rate cut, especially if it means RS surviving this period which is difficult for everyone. I would rather lose interest for a few months than lose RS and my capital! --snip-- Nothing against supporting RS. What I don't grasp is how specifically the cut would help? Other than having more free money in the coffers for RS to re/act. Why specifically do they need it now and until 'at least' the end of the year? And why is a definite loss of interest now, better than a possible loss of capital at a later time? Sure, there would be a risk in running the PF at it's limits, but the interest haircut crystalises part of that risk. I have the feeling I am missing something. The reduction will not be repaid in the future, will it?
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aju
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Post by aju on May 4, 2020 10:45:28 GMT
I haven't checked recently but isn't that on the borrowers side?' £5465 x 5.4% = £295.11. I am apparently going to receive 90% of that amount. I thought you meant in the text in mine that I have just checked they all say £0.00 but not sure why. There have been many changes in the last 2 weeks to the site so this is not unlikely a new one perhaps. I must check more closely after I've got my withdrawal request in as it may take quite a while to get the money out!.
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Post by Ace on May 4, 2020 10:49:53 GMT
I support the interest rate cut, especially if it means RS surviving this period which is difficult for everyone. I would rather lose interest for a few months than lose RS and my capital! --snip-- Nothing against supporting RS. What I don't grasp is how specifically the cut would help? Other than having more free money in the coffers for RS to re/act. Why specifically do they need it now and until 'at least' the end of the year? And why is a definite loss of interest now, better than a possible loss of capital at a later time? Sure, there would be a risk in running the PF at it's limits, but the interest haircut crystalises part of that risk. I have the feeling I am missing something. The reduction will not be repaid in the future, will it? There was no choice about whether to cut rates. There is only enough cash (including expected inflows) to pay 3/4 of the expected shortfalls this month. The T&Cs mandate an interest haircut in this scenario.
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sd2
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Post by sd2 on May 4, 2020 10:56:10 GMT
Surely all investors should get the same rate as all are now in the same position. No.
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pip
Posts: 542
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Post by pip on May 4, 2020 10:57:26 GMT
Nothing against supporting RS. What I don't grasp is how specifically the cut would help? Other than having more free money in the coffers for RS to re/act. Why specifically do they need it now and until 'at least' the end of the year? And why is a definite loss of interest now, better than a possible loss of capital at a later time? Sure, there would be a risk in running the PF at it's limits, but the interest haircut crystalises part of that risk. I have the feeling I am missing something. The reduction will not be repaid in the future, will it? There was no choice about whether to cut rates. There is only enough cash (including expected inflows) to pay 3/4 of the expected shortfalls this month. The T&Cs mandate an interest haircut in this scenario. I preferred the old rules where if the provision fund was depleted then all investments are pooled and proceeds distributed as received. The new method seems unfair on those in the 'Access' product as they no longer have Access and still have a worse rate than long term holders. At some point all P2P companies are going to have to try to do a portfolio reset. Terms for people before the dastardly COVID-19 struck and those after. We are not there yet as still to hard to predict who is/will be impacted by it.
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ashe
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Post by ashe on May 4, 2020 10:58:43 GMT
Bit simplistic. My behaviour in terms of withdrawing was affected by the relative terms and fees between my loans. RS would be waving a red rag to a bull if they forced the same rates on people who didn't put in withdrawal requests earlier due to having higher rates. I wouldn't say simplistic is the right word here and a bit patronising to be honest. I have no skin in the game here as I withdraw everything from RS after they tried to force me to have to declare myself as a sophisticated investor. Patronising?! I could equally say your claim that everyone is in the same position is patronising, when many people's position will be significantly determined by what rate they had paying, let alone the hugely differing release fees, particularly before the true impact was known. It *is* simplistic to ignore all that and say 'everyone should get the same returns'. You may have "no skin in the game here", that doesn't make your argument sound. Those that do have 'skin in the game' had to actually make judgements based on the factors I mentioned.
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Post by Ace on May 4, 2020 11:05:41 GMT
There was no choice about whether to cut rates. There is only enough cash (including expected inflows) to pay 3/4 of the expected shortfalls this month. The T&Cs mandate an interest haircut in this scenario. The new method seems unfair on those in the 'Access' product as they no longer have Access and still have a worse rate than long term holders. At some point all P2P companies are going to have to try to do a portfolio reset. Terms for people before the dastardly COVID-19 struck and those after. We are not there yet as still to hard to predict who is/will be impacted by it. I think that is still the current system, but it comes in to pay when the Capital Coverage Ratio drops below 100%. So far its only the Interest Coverage Ratio that's breached that level.
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sd2
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Post by sd2 on May 4, 2020 11:07:28 GMT
What losses do you expected on the underlying loans (before PF)? My finger in the air guess is 10-15%. 50% My finger where it hurts 101% ....plus!!
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pip
Posts: 542
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Post by pip on May 4, 2020 11:12:04 GMT
I wouldn't say simplistic is the right word here and a bit patronising to be honest. I have no skin in the game here as I withdraw everything from RS after they tried to force me to have to declare myself as a sophisticated investor. Patronising?! I could equally say your claim that everyone is in the same position is patronising, when many people's position will be significantly determined by what rate they had paying, let alone the hugely differing release fees, particularly before the true impact was known. It *is* simplistic to ignore all that and say 'everyone should get the same returns'. You may have "no skin in the game here", that doesn't make your argument sound. Those that do have 'skin in the game' had to actually make judgements based on the factors I mentioned. Example: Joe Bloggs - Invested £x at 6% for 5 years in March 2018 Jane Smith - Invested £x at 2% in Access account in February 2020. New outcome: Joe Bloggs - Receives 3% over remaining term - or until rates reversed back to agreed rate. Payment over original term unless defaults when full repaid from provision fund. Sellout fees to liquidate. Jane Smith - Receives 1%. No sellout fee however no idea when sellout will be processed as secondary market liquidity dried up and now will only get worse with interest rate deduction. What I think would be fair: Joe Bloggs - Receives 50% of average interest rate over remaining term of underlying loans - or until rates reversed back to agreed rate. Sellout fees removed. Jane Smith - Receives 50% of average interest rate over remaining term of underlying loans - or until rates reversed back to agreed rate. Sellout fees removed. If you don't think this is fair that is your prerogative. I think part of the issue here is what my problem has always been with the 'Access' or 'Monthly' and even 'Annual' products, they are essentially long term investments with a marketplace to sell them if there is sufficient liquidity, while at the same time paying short term rates of interest. Maybe my issue is that I never have liked think risk/reward of these short term products as once liquidity dries up the investor is in the same boat as everybody else.
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sd2
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Post by sd2 on May 4, 2020 11:12:08 GMT
I have just paid off a loan and credit card balance for the younger of my two brothers who is not working. At times like this I think we should all keep any eye out for others that are less fortunate. I know one of my friends has done the same for his children who are not working Nah I am keeping all my money and trying to scroung of them. jlend Your not financially very astute are you?
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Post by aroominyork on May 4, 2020 11:13:43 GMT
£5465 x 5.4% = £295.11. I am apparently going to receive 90% of that amount. I thought you meant in the text in mine that I have just checked they all say £0.00 but not sure why. There have been many changes in the last 2 weeks to the site so this is not unlikely a new one perhaps. I must check more closely after I've got my withdrawal request in as it may take quite a while to get the money out!. I guess they are reducing the rate from 5.4% to 2.7% from today on. I guess that's fair - no reason those of us making fixed term loans should escape the pain.
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sd2
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Post by sd2 on May 4, 2020 11:14:54 GMT
I notice when you log in on the first page the going rate column is still showing 3%, 3.5% and 4%. It would be typical of the behaviour of larger P2Ps if they tried to make an argument not to update this to the 1.5%, 1.75% and 2% numbers they have announced. Its rather like Funding Circle boasting how its investor numbers keep going up - its because you cannot get your money out !
I have a lot of respect for RS, but this is really really poor of them. As of today, if the going rate for new investors is 1.5%, 1.75% and 2%, it is quite misleading to put up headline rates of 3%, 3.5% and 4% on there. What new lenders?!
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sd2
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Post by sd2 on May 4, 2020 11:18:44 GMT
There was no choice about whether to cut rates. There is only enough cash (including expected inflows) to pay 3/4 of the expected shortfalls this month. The T&Cs mandate an interest haircut in this scenario. I preferred the old rules where if the provision fund was depleted then all investments are pooled and proceeds distributed as received. The new method seems unfair on those in the 'Access' product as they no longer have Access and still have a worse rate than long term holders. At some point all P2P companies are going to have to try to do a portfolio reset. Terms for people before the dastardly COVID-19 struck and those after. We are not there yet as still to hard to predict who is/will be impacted by it. Still no. You ain't having any of my money. Which is exactly what you are asking for.
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