IFISAcava
Member of DD Central
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Post by IFISAcava on May 5, 2020 12:05:54 GMT
It looks like Loanpad are genuinely finding it difficult to achieve the same rates that they used to. They've added new tranches to two loans today totalling £200k at rates (to Loanpad) that are 0.75% below previous tranches in the same loans. Of the £750k that was repaid today, only the above £200k has been relent. This leaves £912k unlent, much higher than normal. Whether that's a deliberate retention of cash to satisfy expected withdrawal requests following yesterday's rate decrease, or difficulty in finding new opportunities is anyone's guess. Perhaps the reduction in rates will allow them to find additional lending partners. That would be good news if it happened. TBH I'd feel happier with a larger cash cushion and lower rates for now. I've temporarily withdrawn my LP investments into cash until the outlook looks clearer. But in principle I will put a little here for the longer term once things have settled a bit and it is clear they will survive.
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Post by Ace on May 5, 2020 12:16:14 GMT
It looks like Loanpad are genuinely finding it difficult to achieve the same rates that they used to. They've added new tranches to two loans today totalling £200k at rates (to Loanpad) that are 0.75% below previous tranches in the same loans. Of the £750k that was repaid today, only the above £200k has been relent. This leaves £912k unlent, much higher than normal. Whether that's a deliberate retention of cash to satisfy expected withdrawal requests following yesterday's rate decrease, or difficulty in finding new opportunities is anyone's guess. Perhaps the reduction in rates will allow them to find additional lending partners. That would be good news if it happened. TBH I'd feel happier with a larger cash cushion and lower rates for now. I've temporarily withdrawn my LP investments into cash until the outlook looks clearer. But in principle I will put a little here for the longer term once things have settled a bit and it is clear they will survive. I did a similar thing. I made several small and large test withdrawals during the first few weeks of the crisis. Even though the cash balance did reduce to zero at at least one point there were no delays in actioning my withdrawals. The cash balance has stabilised and is growing, and I have confidence in the security, so it's gone back in.
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jcb208
Member of DD Central
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Post by jcb208 on Feb 3, 2022 17:49:04 GMT
Loanpad may have to look at increasing borrower and investor interest rates If the base rate continues to rise quickly as predicted
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p2pfan
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Full-Time Investor
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Post by p2pfan on Feb 3, 2022 20:48:56 GMT
Loanpad may have to look at increasing borrower and investor interest rates If the base rate continues to rise quickly as predicted Yes. At the current low interest rates at Loanpad, it means that every day we are taking significant risks with our money investing via Loanpad it is losing value in real terms. With inflation going in the 7% direction, the situation is not looking bright for investors in Loanpad and other low-interest P2P platforms.
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firedog
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Post by firedog on Feb 3, 2022 21:12:42 GMT
Loanpad may have to look at increasing borrower and investor interest rates If the base rate continues to rise quickly as predicted With inflation going in the 7% direction, the situation is not looking bright for investors in Loanpad and other low-interest P2P platforms. I don't understand. Where else are you going to put it? By that I mean you shouldn't be measuring Loanpad against inflation. You should be measuring it against alternative investments.
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Post by Harland Kearney on Feb 4, 2022 1:45:18 GMT
Loanpad may have to look at increasing borrower and investor interest rates If the base rate continues to rise quickly as predicted Yes. At the current low interest rates at Loanpad, it means that every day we are taking significant risks with our money investing via Loanpad it is losing value in real terms. With inflation going in the 7% direction, the situation is not looking bright for investors in Loanpad and other low-interest P2P platforms. It is extremely good as a cash drag protection, if you take the Risk Adjusted returns seriously & stack to alternatives. Aren't many places to hide anymore in this turbulant market dynamics with the FED tightening impacting many valuation such as equities/bonds based invesmtents. I still relate to your orginal statement, we are theortically returning a loss, just a lesser loss than might otherwise be the case! A rate increase is going to be welcomed by all, but it should also be taken into account higher rates for borrowers can have other impacts on the loan portfilio in the long term. I however have good confidence in Loan Pad going forward. Its my only P2P holding left out here in the Wild West, as I've said many times before! 
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Post by nooneere on Feb 5, 2022 0:07:45 GMT
With inflation going in the 7% direction, the situation is not looking bright for investors in Loanpad and other low-interest P2P platforms. I don't understand. Where else are you going to put it? By that I mean you shouldn't be measuring Loanpad against inflation. You should be measuring it against alternative investments. I think she is comparing to P2P platforms like CP or CR that do pay over 7%. But the mainstream easy access market grew by £99bn in 2021, even though 71% of such accounts pay 0.1% or less www.mailonsunday.co.uk/money/saving/article-10469413/Best-easy-access-savings-accounts-99bn-cash-went-year.html If more of that money decides to look for higher rates, LP would be one of the more natural homes, and the platform's future could be very bright indeed.
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mogish
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Post by mogish on Feb 9, 2022 12:20:18 GMT
HK has summarized this well .
4%is still more than any bank is offering, indeed more risk but better rewards, not unlike any other investment.
We prob all agree the last 2 years have been a massive learning curve for us all, whether investment in p2p, S&S gold or holding cash in poor return accounts.
Hopefully inflation should slow in coming months, my take on it is to limit buying or shop around more to mitigate increased costs.
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ashtondav
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Post by ashtondav on Feb 9, 2022 18:08:25 GMT
Lets be VERY clear. p2p, with all its risks at 4% beats BS rates of 0.5- 0.7 with a bloody great 10 ton sledgehammer. 8 times the return at probably twice the risk. Of course you could punt more on NASDAQ, as thats 12% cheaper than it was a few weeks ago. Or bond funds - my how theyve performed recently.
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mogish
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Post by mogish on Mar 14, 2022 13:24:19 GMT
As much as I have grown to dislike p2p after having my fingers burned, recently my entire hand has been scorched with my sipp!
Suddenly 4% looks great. Just mind and limit exposure!.
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Post by overthehill on Mar 14, 2022 15:27:42 GMT
As much as I have grown to dislike p2p after having my fingers burned, recently my entire hand has been scorched with my sipp! Suddenly 4% looks great. Just mind and limit exposure!.
Diversification is the key , in P2P and across other investments. There was a lot of posts a while back about getting out of P2P into stock markets like it is some sort of panacea, never the best plan when every global stock market is at all time highs. People had too much money and too much exposure in these corrupt riddled collapses like fundingsecure.
3-6% pa has always been a rough benchmark used by pensions and asset managers as a good long term return, on a par with P2P. The stock market is a different type of investing than P2P, losses are rarely crystallized and can always bounce back to gains whereas P2P losses are lost for good. Stock market gains are about drip feeding and buying low and selling high, for instance take a look at the hang seng and se asian markets at the moment and tell me they won't recover ! Like when Putin meets his Tywin Lannister moment.
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Post by Ace on May 26, 2022 7:29:22 GMT
For the first time I can remember, total funds on Loanpad reduced slightly this morning. The unassigned cash is down to just £0.5m, and there's a £0.25m loan in the pipeline. We must be getting very close to a rate rise announcement.
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Post by Ace on Jun 1, 2022 6:42:01 GMT
Total funds on platform jumped up by £600k today without any increase in number of lenders.
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mcfc
I’m invested in Qardus, Loanpad, Proplend, and Crowproperty
Posts: 97
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Post by mcfc on Jun 9, 2022 10:27:55 GMT
Interestingly, Marcus gave me a .25 bonus yesterday. Granted whilst this does raise the returns from Marcus, they are still significantly below what I receive from LP…. However the point here is that rates were raised… hoping this may influence LP to consider raising their own rates, as 4% in Premium is beginning to look just a tad low.
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a0010402
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Post by a0010402 on Jun 9, 2022 10:39:18 GMT
Cynergy Bank is currently offering a FSCS-protected 2-year bond at 2.88%.
That only leaves a LP Premium rate headroom of 1.12%.
I'd think the platform risk alone is worth 1.12% — does anyone agree? Annualized risk of 0.598%?
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