|
Post by freefalljunkie on Jul 8, 2020 10:45:07 GMT
I am optimistically hoping that no news from Metro Bank on this is good news as it at least means they are still talking. It is pretty clear now that Ratesetter is finished without a major injection of capital and I can only see that coming from a takeover.
|
|
tjtl
Posts: 232
Likes: 351
|
Post by tjtl on Jul 27, 2020 12:39:00 GMT
The silence on the proposed acquisition of Ratesetter by Metro Bank is deafening: the confirmation of early stage talks was on 15th June - and no news for 6 weeks. We can all speculate whether the absence of any updates is good news (i.e. likely that Ratesetter does get acquired at least giving comfort that the platform can survive) or bad news ( perhaps the parties just cannot reach agreement, or the terms for reaching agreement are considered so painful as to not merit a deal). In the meantime I am sure I am not alone in quietly withdrawing what I can from normal flows (I cancelled my sale as I was too far back in the queue, but still have some £245k left- though am getting around £1k per day (on a good day) of cash out)- fingers crossed the platform lasts a while longer. I have always had a high regard for the management of Ratesetter- sure they have made mistakes (the fact that I am over exposed on this platform, as I am on others, shows the mistakes I have made), so I continue to hope a transaction can be executed- otherwise I wonder what future Ratesetter could have as a stand-alone platform- my suspicion is it needs a deal more than metro need a deal.
|
|
sd2
Member of DD Central
Posts: 621
Likes: 224
|
Post by sd2 on Jul 27, 2020 15:09:26 GMT
Surely metro knew they would have to take on the present lenders in some way? The presentloanbook has at least to be run down? And I would assume metro would be perfect for that. How else could it work remembering the FCA authority will want an answer to that. Looks to me that metro has to take over the loanbook if they want ratesetter. I am basing that on FCA being involved. But "By the end of April 2020, RateSetter had a loan portfolio of approximately £800m, and an average yield on its loan assets of approximately 4.4 per cent. In 2018, Metro Bank reported revenues of £404.1m" Okay Metro's figures are out of date and therefore taking on ratesetter lenders might be beyond them buying them out definitely looks like a "no chance".
|
|
starfished
Member of DD Central
Posts: 296
Likes: 216
|
Post by starfished on Jul 27, 2020 15:13:35 GMT
Surely metro knew they would have to take on the present lenders in some way? The presentloanbook has at least to be run down? And I would assume metro would be perfect for that. How else could it work remembering the FCA authority will want an answer to that. Looks to me that metro has to take over the loanbook if they want ratesetter. I am basing that on FCA being involved. But "By the end of April 2020, RateSetter had a loan portfolio of approximately £800m, and an average yield on its loan assets of approximately 4.4 per cent. In 2018, Metro Bank reported revenues of £404.1m" Okay Metro's figures are out of date and therefore taking on ratesetter lenders might be beyond them buying them out definitely looks like a "no chance". If there was a pre-pack administration would they have to take on the lenders? Genuinely just a question out of curiosity, we really have no idea what is happening behind scenes.
|
|
beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
|
Post by beagle on Jul 27, 2020 16:55:25 GMT
I think it still is moving ahead, I asked an agent and they said they could not comment on the progress. That being said GrowthStreet is winding down.
I think RS is a smart bunch, no one has lost anything as yet and they can still cut more interest if they needed to. It is a good USP.
If the deal goes ahead metro will plough cash and leverage the platform for lending and allow RS to deal with retail wind down is my thought.
Why on earth would anyone take on retail
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Jul 27, 2020 17:35:05 GMT
Altfi has a last 10 years article on metro here its interesting they had an accounting error ... Not sure I want them anywhere near loans on RS if they don't understand risky loans correctly!.
|
|
tjtl
Posts: 232
Likes: 351
|
Post by tjtl on Jul 27, 2020 18:15:23 GMT
Aju, this was covered extensively at the time, the error was not a straight-forward one (albeit one a main high street bank should not have made) but from memory related to the treatment of risk weighting in calculating tier 1 capital - they only ascribed a 50% weighting on certain loans wen it should have been 100%- a darned sight more complicated than assessing Ratesetter. The alternative to having Metro acquiring Ratesetter is probably Ratesetter ploughing their own furrow, and I don't think that works. And also remember the whole senior management of Metro Bank (including the Chairman with his familiarity with P2P) have changed. I think they would be a decent owner of the asset
|
|
sd2
Member of DD Central
Posts: 621
Likes: 224
|
Post by sd2 on Jul 28, 2020 10:51:29 GMT
Metro are mainly mortgages or at least a lot. Personal loans are a lot more profitable and that's there thinking. They are supposedly more interested in the tech side of ratesetter. Ratesetter can run down loanbook if they reduce interest rates far enough. But have they already done enough to achieve that.
|
|
|
Post by shanghaiscouse on Jul 29, 2020 9:39:52 GMT
Fact is, our loan book cannot be managed profitably at current management fee levels, that's why RS has never made a profit. So either a bigger fool buys it and keeps the same optimism that one day things will get better, or else a zombie administrator runs it but on a management fee that can cover the costs. And costs will spiral because of the cost of managing the bad debts. It will become a game of how much the administrator can suck out of us until the loans finally expire...but even then it won't be over as there will then be years until all the loan recovery work is done....look at funding circle......
|
|
sd2
Member of DD Central
Posts: 621
Likes: 224
|
Post by sd2 on Jul 29, 2020 10:44:37 GMT
Ratesetter isn't funding circle who were in trouble well before corona. Your constant negative views are just straight forward whining. Don't invest unless you can afford to lose your money.
|
|
beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
|
Post by beagle on Jul 30, 2020 23:09:07 GMT
Fact is, our loan book cannot be managed profitably at current management fee levels, that's why RS has never made a profit. So either a bigger fool buys it and keeps the same optimism that one day things will get better, or else a zombie administrator runs it but on a management fee that can cover the costs. And costs will spiral because of the cost of managing the bad debts. It will become a game of how much the administrator can suck out of us until the loans finally expire...but even then it won't be over as there will then be years until all the loan recovery work is done....look at funding circle...... You do not have facts.... This is pure assumption. How do you know it could not be managed (yes i know they were not yet profitable) they had many costs to factor (e.g. the bad debts from 2017). Their last accounts show solid improvement and analysts tipped them for profitability this year - COVID killed that. If it was pure fact corporate investors would not place millions into the company. they are a smart bunch
|
|
|
Post by shanghaiscouse on Jul 31, 2020 21:00:55 GMT
We do have some facts, from the March 2019 accounts, which represent peak performance, all pre-coved and relatively benign environment. (i) they failed to grow, revenue shrank slightly, (ii) they lost £8m quid on £33m of revenue. No growth, no profit. The vehicle business losses were booked in 2018, which was anothe big loss-making year . The balance sheet had been kept afloat by booking £13m of revaluation gains on the value of Ratesetter Australia (which they only own 15% of) which is planning to IPO, but I guess COVID has done for that as it is now hitting Australia hard.
|
|
adrian77
Member of DD Central
Posts: 3,895
Likes: 4,122
|
Post by adrian77 on Aug 1, 2020 10:26:32 GMT
can somebody tell me what this company actually trades as because I can't find it at companies house - I have found the company that manages the provision fund and it was not exactly what I was expecting
|
|
coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
|
Post by coogaruk on Aug 1, 2020 10:37:06 GMT
can somebody tell me what this company actually trades as because I can't find it at companies house - I have found the company that manages the provision fund and it was not exactly what I was expecting Retail Money Market Ltd
|
|
|
Post by shanghaiscouse on Aug 1, 2020 12:28:56 GMT
can somebody tell me what this company actually trades as because I can't find it at companies house - I have found the company that manages the provision fund and it was not exactly what I was expecting what were you expecting? Retail Money Market, trading as Ratesetter, owns the provision fund. The next accounts are not due until October and as they only go to March 2020 then the worst of Covid won't be included, not the Australia revaluation. I am curious to know what you expected, though.
|
|