johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
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Post by johnt on Aug 20, 2020 8:53:48 GMT
Is it typical for loans in the 1 Year market to repay a month early? I've noticed that 3 different loans that were due to finish on separate dates in September have all been repaid exactly a month early (give or take a day). Seems strange, almost suspicion raising - like RateSetter are closing out loans a little early to get more funds released? It' very common. I've had some 1 year loans repay within 6 months, especially ones which I'd matched high interest rates with.
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aju
Member of DD Central
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Post by aju on Aug 20, 2020 9:23:04 GMT
Is it typical for loans in the 1 Year market to repay a month early? I've noticed that 3 different loans that were due to finish on separate dates in September have all been repaid exactly a month early (give or take a day). Seems strange, almost suspicion raising - like RateSetter are closing out loans a little early to get more funds released? It' very common. I've had some 1 year loans repay within 6 months, especially ones which I'd matched high interest rates with. Out of interest how high were the rates generally where this happened
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savernake
Member of DD Central
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Post by savernake on Aug 20, 2020 9:46:02 GMT
Is it typical for loans in the 1 Year market to repay a month early? I've noticed that 3 different loans that were due to finish on separate dates in September have all been repaid exactly a month early (give or take a day). Seems strange, almost suspicion raising - like RateSetter are closing out loans a little early to get more funds released? It' very common. I've had some 1 year loans repay within 6 months, especially ones which I'd matched high interest rates with. I wouldn't be surprised if RS are re-financing them from the A/P/M market.
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chris1200
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Post by chris1200 on Aug 20, 2020 10:01:10 GMT
It' very common. I've had some 1 year loans repay within 6 months, especially ones which I'd matched high interest rates with. I wouldn't be surprised if RS are re-financing them from the A/P/M market. Oh gawd I hope not... 
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wuzimu
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Post by wuzimu on Aug 20, 2020 11:49:26 GMT
It' very common. I've had some 1 year loans repay within 6 months, especially ones which I'd matched high interest rates with. I wouldn't be surprised if RS are re-financing them from the A/P/M market. Of course they are doing that.
RS's aim for a while is to maximize revenue to meet whatever performance targets are in the Metrobank deal, not to honour naive expectations of fairplay from lenders.
RS will do whatever they can within the explicit terms to maximize their revenue and one way is certainly to swap out 1 yr and 5 yr RYI into re-investment money from Access markets.
That is why there is so little movement in the Access RYI queue.
What is missing in this process (and its common with ALL P2P failures) is there is no united voice of lenders to have our position accomodated. We are a crucial stakeholder and we are getting done over, the extent of which will be revealed in the months to come.....
If I was a bigger lender I would start an RS action group (RSAG) by advertising on this platform for others and forming an FB group to co-ordinate. It only takes a group of 25 or so motivated people to make a difference.
This is required now for RS.
Do not be behind the curve on this!!
I do not believe there is illegal naughtiness at RS as per COL, Lendy, FS... but a lender voice is still required.
Actually I'm going to start another thread.
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Post by Deleted on Aug 20, 2020 13:18:12 GMT
RS's aim for a while is to maximize revenue Well when you put it like that, it does sound very sinister doesn't it. Of course, another way to put it would be minimizing losses. Since RateSetter have tried and failed for years to make a profit on 1-Year and 5-Year lending.
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aju
Member of DD Central
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Post by aju on Aug 21, 2020 9:33:46 GMT
Ok so i'm not sure I'm in the right thread but i'll give it a go i'm sure someone will put me right if i'm not, my memory is not that great and search on here is positively useless for finding comments about the 1Y (No offence Mods it's not your fault I know and I'm sure someone will correct me on that).
So i've been having an email conversation with RS about lending volume and the RYI stuff etc and a curious thing cropped up that I hadn't really thought about in my question for the 1Y. RS made the comment
so it got me thinking that statement is odd as there is only 1 payment at closure so I checked all our 1Y loans and as they said they are all non amortizing.
So my question what is the point of
1. Having a 1Y RYI queue at all
2. Even bothering to request an entry in the queue
Are there any amortizing 1Y loans anyway as they said and does any of us have one by chance.
Please be gentle in response if its easy to find this as a discussion elsewhere, my memory is useless. Looking at our 1Y loans we have varying degrees of wind down anyway so its not really a problem to us just curious why have an RYI option anyway if its never going to produce a result as such.
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up
Posts: 59
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Post by up on Aug 21, 2020 9:49:19 GMT
Ok so i'm not sure I'm in the right thread but i'll give it a go i'm sure someone will put me right if i'm not, my memory is not that great and search on here is positively useless for finding comments about the 1Y (No offence Mods it's not your fault I know and I'm sure someone will correct me on that). So i've been having an email conversation with RS about lending volume and the RYI stuff etc and a curious thing cropped up that I hadn't really thought about in my question for the 1Y. RS made the comment so it got me thinking that statement is odd as there is only 1 payment at closure so I checked all our 1Y loans and as they said they are all non amortizing. So my question what is the point of 1. Having a 1Y RYI queue at all 2. Even bothering to request an entry in the queue Are there any amortizing 1Y loans anyway as they said and does any of us have one by chance. Please be gentle in response if its easy to find this as a discussion elsewhere, my memory is useless. Looking at our 1Y loans we have varying degrees of wind down anyway so its not really a problem to us just curious why have an RYI option anyway if its never going to produce a result as such. They mean repayments on other (not your own) 1Y loans from which they may service some RYI in the 1Y. Can see from Market Data that repays are lumpy. And makes sense if property loans so larger amounts whilst overall lend volume not that large on 1Y.
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aju
Member of DD Central
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Post by aju on Aug 21, 2020 9:57:27 GMT
Ok so i'm not sure I'm in the right thread but i'll give it a go i'm sure someone will put me right if i'm not, my memory is not that great and search on here is positively useless for finding comments about the 1Y (No offence Mods it's not your fault I know and I'm sure someone will correct me on that). So i've been having an email conversation with RS about lending volume and the RYI stuff etc and a curious thing cropped up that I hadn't really thought about in my question for the 1Y. RS made the comment so it got me thinking that statement is odd as there is only 1 payment at closure so I checked all our 1Y loans and as they said they are all non amortizing. So my question what is the point of 1. Having a 1Y RYI queue at all 2. Even bothering to request an entry in the queue Are there any amortizing 1Y loans anyway as they said and does any of us have one by chance. Please be gentle in response if its easy to find this as a discussion elsewhere, my memory is useless. Looking at our 1Y loans we have varying degrees of wind down anyway so its not really a problem to us just curious why have an RYI option anyway if its never going to produce a result as such. They mean repayments on other (not your own) 1Y loans from which they may service some RYI in the 1Y. Can see from Market Data that repays are lumpy. And makes sense if property loans so larger amounts whilst overall lend volume not that large on 1Y. Thanks up, I hadn't assumed it was mine but i had not thought of it as early repayment on my loans going to someone else though. So would i be right in thinking that an early repayment to one of my 1Y loans go to someone else or am I confused even more. (I'm probably being think perhaps so apologies for that)
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r00lish67
Member of DD Central
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Post by r00lish67 on Aug 21, 2020 10:08:14 GMT
They mean repayments on other (not your own) 1Y loans from which they may service some RYI in the 1Y. Can see from Market Data that repays are lumpy. And makes sense if property loans so larger amounts whilst overall lend volume not that large on 1Y. To add to this, as you say "there may not always be a loan repayment everyday" but there will be on some days. So there is a point to RYI's, it's just that repayments are more lumpy because those types of loans don't redeem every day (often property sales).
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up
Posts: 59
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Post by up on Aug 21, 2020 11:26:59 GMT
They mean repayments on other (not your own) 1Y loans from which they may service some RYI in the 1Y. Can see from Market Data that repays are lumpy. And makes sense if property loans so larger amounts whilst overall lend volume not that large on 1Y. Thanks up, I hadn't assumed it was mine but i had not thought of it as early repayment on my loans going to someone else though. So would i be right in thinking that an early repayment to one of my 1Y loans go to someone else or am I confused even more. (I'm probably being think perhaps so apologies for that) It is only repayments where the lender has settings to reinvest - so your 1Y repayments (full term or early) would not be taken against your will - and strictly there could be some repays in other markets where the lender has reinvestment set to go into 1Y - those might fund some RYI.
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aju
Member of DD Central
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Post by aju on Aug 21, 2020 11:31:19 GMT
Thanks up , I hadn't assumed it was mine but i had not thought of it as early repayment on my loans going to someone else though. So would i be right in thinking that an early repayment to one of my 1Y loans go to someone else or am I confused even more. (I'm probably being think perhaps so apologies for that) It is only repayments where the lender has settings to reinvest - so your 1Y repayments (full term or early) would not be taken against your will - and strictly there could be some repays in other markets where the lender has reinvestment set to go into 1Y - those might fund some RYI. Oh that's an interesting one as I have relend on with no intention of lending but it keeps me access to other tools. As I have the lend numbers up at 10% though the money would stay with me I guess though if I catch it before it lends out.
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