mrk
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Post by mrk on Jun 15, 2020 16:16:22 GMT
37% of my capital was available for withdrawal. About 25% for me. I think I can count myself fairly lucky.
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Post by garreh on Jun 15, 2020 16:23:29 GMT
Does anyone know how the quartley payment returns will work? Is the money compounded or is it returned in equal amounts relative to your *original* outstanding investment?
If it's compounded then return rate will dimish over time and could take a very long time to get money back. If it's in relative equal amounts, then that will take a much shorter amount of time.
I can't imagine it would be compounded, I'm probably just being dumb.
Example:
£100 investment Assume 10% returned every quarter:
1st Payment: £10 (£90 outstanding) 2nd Payment: £9 (£81 oustanding) 3rd Payment: £8.1 (£72.9 outstanding) .... etc
This looks small with these numbers, but with a large investment this has a big impact.
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Post by kezza on Jun 15, 2020 16:34:44 GMT
Does anyone know how the quartley payment returns will work? Is the money compounded or is it returned in equal amounts relative to your *original* outstanding investment? If it's compounded then return rate will dimish over time and could take a very long time to get money back. If it's in relative equal amounts, then that will take a much shorter amount of time. I can't imagine it would be compounded, I'm probably just being dumb. Example: £100 investment Assume 10% returned every quarter: 1st Payment: £10 (£90 outstanding) 2nd Payment: £9 (£81 oustanding) 3rd Payment: £8.1 (£72.9 outstanding) .... etc This looks small with these numbers, but with a large investment this has a big impact. I assume its just going to be proportional to the amount recovered. If they get 10% of the money returned then we get that back of our investment. My main concern is the potentially multi-year timeline for recovering these loans to only end up seeing 40-80% of our money. Especially when some investors have seen large returns immediately. I imagine all the 'easy' credit reductions and recalls have already been done to increase liquidity in the LE.
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pom
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Post by pom on Jun 15, 2020 16:35:56 GMT
Does anyone know how the quartley payment returns will work? Is the money compounded or is it returned in equal amounts relative to your *original* outstanding investment? If it's compounded then return rate will dimish over time and could take a very long time to get money back. If it's in relative equal amounts, then that will take a much shorter amount of time. I can't imagine it would be compounded, I'm probably just being dumb. Example: £100 investment Assume 10% returned every quarter: 1st Payment: £10 (£90 outstanding) 2nd Payment: £9 (£81 oustanding) 3rd Payment: £8.1 (£72.9 outstanding) .... etc This looks small with these numbers, but with a large investment this has a big impact. I think you're being far too optimistic to assume any sort of consistency. Far more likely to be very irregular....with some big dollops early on and tailing off....
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Post by equity on Jun 15, 2020 16:39:20 GMT
Does anyone know how the quartley payment returns will work? Is the money compounded or is it returned in equal amounts relative to your *original* outstanding investment? If it's compounded then return rate will dimish over time and could take a very long time to get money back. If it's in relative equal amounts, then that will take a much shorter amount of time. I can't imagine it would be compounded, I'm probably just being dumb. Example: £100 investment Assume 10% returned every quarter: 1st Payment: £10 (£90 outstanding) 2nd Payment: £9 (£81 oustanding) 3rd Payment: £8.1 (£72.9 outstanding) .... etc This looks small with these numbers, but with a large investment this has a big impact. I assume its just going to be proportional to the amount recovered. If they get 10% of the money returned then we get that back of our investment. My main concern is the potentially multi-year timeline for recovering these loans to only end up seeing 40-80% of our money. Especially when some investors have seen large returns immediately. I imagine all the 'easy' credit reductions and recalls have already been done to increase liquidity in the LE.Now that the LE is over - do we think that GS will start to give us more information?
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Post by garreh on Jun 15, 2020 16:45:41 GMT
Does anyone know how the quartley payment returns will work? Is the money compounded or is it returned in equal amounts relative to your *original* outstanding investment? If it's compounded then return rate will dimish over time and could take a very long time to get money back. If it's in relative equal amounts, then that will take a much shorter amount of time. I can't imagine it would be compounded, I'm probably just being dumb. Example: £100 investment Assume 10% returned every quarter: 1st Payment: £10 (£90 outstanding) 2nd Payment: £9 (£81 oustanding) 3rd Payment: £8.1 (£72.9 outstanding) .... etc This looks small with these numbers, but with a large investment this has a big impact. I think you're being far too optimistic to assume any sort of consistency. Far more likely to be very irregular....with some big dollops early on and tailing off.... Of course, I just used 10% as a very rough and modest guide given we've seen 20-25% liquidity returned over 3 months. As time goes on I'm sure defaults will claw away - but I hope GS projections are accurate when they state an expected 3% default rate for this year. Also you would expect things to pick up over the course of the next year or two as things return to some form of normality. It's frustrating because just as GS are winding down other P2P platforms may start kicking off again and returning to normality. Guess we'll just have to be patient and see what happens. One things for sure - I'll remember the names of all key figures involved in Growth Street and will never go near any platform they are involved in: - Greg Carter
- Christian Van Lanschot
- Peter Chatterley
- Greg Reeve
- Kim Goetzke
- Mark Chamings
Remember these names - if anyone would like to share others so we can be aware in future.
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pom
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Post by pom on Jun 15, 2020 17:04:07 GMT
but I hope GS projections are accurate when they state an expected 3% default rate for this year. Also you would expect things to pick up over the course of the next year or two as things return to some form of normality. I don't know where you're quoting that from, but I'd be very surprised if it were a post-covid prediction. And yes things might improve over the next year or two but that isn't going to help business borrowers being asked to repay NOW. These were all short term loans, although some may now drag out a considerable length of time. Yes we've seen liquidity improve over the last few months but there will always be some borrowers in a better position to pay off than others, and a lot of this will have been due to GS not replacing repaid loans with new business. No wind down is ever anything like linear, make the most of what repays in the short term as we'll undoubtedly be waiting years for the dregs. And the ceasing of accrued interest suggests to me they don't expect to recover 100% of capital
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Post by garreh on Jun 15, 2020 17:05:48 GMT
This is how GS have managed to stop paying interest as per their terms. It looks like they own any possible recoveries as well, basically surrenders all rights to the loans to GSP. Utterly disgusting. It's a bit vague and left open for interpretation what it means by "benefit from" - is that lining GS pockets with nice bonuses and salaries? Obviously we would hope it's for the benefit of investors and security. But the way it's worded and how GS have handled this whole thing makes it feel like more of a scam. Attachments:
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Post by garreh on Jun 15, 2020 17:15:43 GMT
but I hope GS projections are accurate when they state an expected 3% default rate for this year. Also you would expect things to pick up over the course of the next year or two as things return to some form of normality. I don't know where you're quoting that from, but I'd be very surprised if it were a post-covid prediction. And yes things might improve over the next year or two but that isn't going to help business borrowers being asked to repay NOW. These were all short term loans, although some may now drag out a considerable length of time. Yes we've seen liquidity improve over the last few months but there will always be some borrowers in a better position to pay off than others, and a lot of this will have been due to GS not replacing repaid loans with new business. No wind down is ever anything like linear, make the most of what repays in the short term as we'll undoubtedly be waiting years for the dregs. And the ceasing of accrued interest suggests to me they don't expect to recover 100% of capital I never said it was linear. As for default rates, it's a live projection on their site - you can see the stats for yourself. Whether they are accurate or not is a different story I guess. And to clarify, borrowers aren't being asked to repay "NOW" - their loans remain the same and they "repay in line with the terms of their contractual agreements" - there is even flexibility in GS terms to allow for wriggle room if the company is struggling to pay to allow extending beyond the original contractual date and even lend more money. That's ultimately a good thing, assuming GS are component enough to know when to allow forbearance, lend more or cut losses. Ceasing of interest is another sneaky clause in their terms. It's likely just another way for them to continue operating and paying salaries, benefiting from our misery. I would like to think they will use that money to help fund the provision fund, but that really is wishful thinking at this stage.
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Post by df on Jun 15, 2020 17:34:28 GMT
I assume its just going to be proportional to the amount recovered. If they get 10% of the money returned then we get that back of our investment. My main concern is the potentially multi-year timeline for recovering these loans to only end up seeing 40-80% of our money. Especially when some investors have seen large returns immediately. I imagine all the 'easy' credit reductions and recalls have already been done to increase liquidity in the LE.Now that the LE is over - do we think that GS will start to give us more information? I doubt it. 1. GS has never been very informative. 2. Having some wind down examples from other platforms - the flow of information tend to reduce or almost disappear. I'm quite disappointed with the volume of information in today's communication. They had 3 months to prepare it and yet many questions are unanswered. I feel lucky being able to withdraw 4.5% of my funds today, but I didn't really understand the pattern of further distributions. I can't view my live investments any more, does it mean I have to log in every day to see if I have anything available to withdraw? What does "at least on quarterly basis" mean? It's obvious that the scheduled bonuses are cancelled, but they could've communicated this in the e-mail. No mention of IFISA bonds... I was quite keen on GS and doubled my investment last December for 2% bonus opportunity. It was a big mistake, can only blame myself for being greedy. Rant over At least the situation is much clearer than with FO (former Welendus) where we are in complete darkness.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jun 15, 2020 18:16:44 GMT
I had a £2000 ISA bond due to mature 22nd next month. This has been repaid with £111.87 interest (c6.2%) into my cash account. Now just have to wait for quarterly part payments. As it is only a modest amount I will withdraw funds rather than arrange multiple ISA transfers. Edit: Got an email that said I can withdraw or transfer the balance But tried to withdraw it and it said I couldn't
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IFISAcava
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Post by IFISAcava on Jun 15, 2020 18:45:52 GMT
I had a £2000 ISA bond due to mature 22nd next month. This has been repaid with £111.87 interest (c6.2%) into my cash account. Now just have to wait for quarterly part payments. As it is only a modest amount I will withdraw funds rather than arrange multiple ISA transfers. That's interesting so I just checked and I have indeed now also been repaid - capital plus interest that my XIRR calculation says is 6.11%. Huge relief. Mine's into 5 figures so I will arrange an ISA transfer out ASAP.
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IFISAcava
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Post by IFISAcava on Jun 15, 2020 18:58:05 GMT
Clarification email explained that ISA bonds were repaid before the 1 year term, but with full 5.8% interest - hence the higher than 5.8% annualised XIRR that I calculated.
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Post by garreh on Jun 15, 2020 19:08:02 GMT
Clarification email explained that ISA bonds were repaid before the 1 year term, but with full 5.8% interest - hence the higher than 5.8% annualised XIRR that I calculated. Seriously . Can this get anymore unfair? So those that invested for 1 year get their money back early IN FULL and WITH MORE INTEREST?
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IFISAcava
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Post by IFISAcava on Jun 15, 2020 19:22:53 GMT
Clarification email explained that ISA bonds were repaid before the 1 year term, but with full 5.8% interest - hence the higher than 5.8% annualised XIRR that I calculated. Seriously . Can this get anymore unfair? So those that invested for 1 year get their money back early IN FULL and WITH MORE INTEREST? Sorry. No one more surprised than me. I suspect it will be explained somewhere in the RE small print. Makes up for some areas in P2P where I consider myself to have been unlucky.
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