littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 16, 2020 12:46:57 GMT
The increase in the interest rate is very nice but I worry how OC are going to manage the portfolio for many years without this income stream. Maybe they have other sources of income or perhaps the parent company will pay their running costs but it would be reassuring to know. This virus and also their liquidity problem could be here for years, and some of their loans are 20+ years long. If (and it may not be) it is a choice between a higher interest rate and running risks with my capital then I would not want the latter. The reason that I chose to invest in OC was a belief that capital was about as safe as is ever possible in p2p.
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macq
Member of DD Central
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Post by macq on May 17, 2020 12:44:09 GMT
The increase in the interest rate is very nice but I worry how OC are going to manage the portfolio for many years without this income stream. Maybe they have other sources of income or perhaps the parent company will pay their running costs but it would be reassuring to know. This virus and also their liquidity problem could be here for years, and some of their loans are 20+ years long. If (and it may not be) it is a choice between a higher interest rate and running risks with my capital then I would not want the latter. The reason that I chose to invest in OC was a belief that capital was about as safe as is ever possible in p2p. I would assume (probably wrongly as usual) that OC are hoping the repayments when they start and will then run longer will allow them to make their money up at the end i.e i have loans at 8% but thats not what i'm getting.Looking at the loan book nearly all are in the 0 - 5 year range which i must admit i thought was their usual length but the few over 20 years seem small value by their standards with little remaining - while all p2p is a worry for investors at the moment hopefully OC having a recovery team in place (and i assume the parent company for the 20 odd years they have been in property?)will help if not then the 5% first loss on whats usually a 40 or 50 million loan book when i'v looked before is a good incentive
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Post by Financial Thing on May 29, 2020 23:05:10 GMT
Choice is part of a much larger company, the Octopus Group which pre-Covid employed 800+ people in the health care, tech, energy, managed investment portfolios and real estate lending. I've visited the Octopus building and Choice offices offices and was very impressed by their operations. I'm not too concerned about OC despite the freeze.
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