dave4
Member of DD Central
Cynical is a hobby not a lifestyle
Posts: 1,046
Likes: 605
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Post by dave4 on Jun 20, 2024 15:31:32 GMT
Is this good,bad or indifferent for us individual lenders? I’m not sure. IMO it's a very good thing as it reduces some of the risk. When I first started investing with Loanpad there was only 1 lending partner. If that lending partner ran into difficulties it could have caused potential problems for all of the loans. With 18 lending partners the potential impact of any one of them running into difficulties will be much lower. Though one could argue that the likelihood of one of them running into difficulty is now higher, since there are more of them. I agree with a ace but.... Flip side. there is an increased risk of lp just using lending partners, and doing a assets capital. Ps its a slim chance but......
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Post by Ace on Jun 20, 2024 15:47:48 GMT
IMO it's a very good thing as it reduces some of the risk. When I first started investing with Loanpad there was only 1 lending partner. If that lending partner ran into difficulties it could have caused potential problems for all of the loans. With 18 lending partners the potential impact of any one of them running into difficulties will be much lower. Though one could argue that the likelihood of one of them running into difficulty is now higher, since there are more of them. I agree with a ace but.... Flip side. there is an increased risk of lp just using lending partners, and doing a assets capital. Ps its a slim chance but...... Perhaps I'm missing your point here, but Loanpad can't "just use lending partners". Loanpad use investors' (our) funds to take the senior position in lending partners' loans. This allows the lending partners to leverage their funds to earn higher interest on the remaining junior portion of each loan. It's possible that Loanpad could replace us investors with institutional lenders, à la AC, but an increase in the number of lending partners doesn't make any difference to that risk.
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mogish
Member of DD Central
Posts: 1,103
Likes: 525
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Post by mogish on Jun 21, 2024 8:59:50 GMT
Dont mention AC in an LP thread. this makes me nervous as I'm only in 2 p2p platform now, LP has my bigger numbers.
I'm.still waiting (impatiently) on closure of the Ayrshire laird saga.
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Post by Ace on Sept 16, 2024 16:50:25 GMT
Now up to 19 lending partners.
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