aju
Member of DD Central
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Post by aju on Sept 14, 2020 22:47:37 GMT
RYI is only being ceased in the 5Y not the APM or 1Y markets i thought that's what I understood when I read the email. Interesting stuff I must get round to removing my 5Y dummy on markets as they are clearly not worth bothering with anymore.( Although I they suggest they will recover the OTM in the 5Y anyway.) I'll keep our Access on RYI and the 1Y although I'm not sure if the new options will give much in the 1Y RYI anyway. Hopefully my last block of 5Y will hit the RYI before they stop it in October. time to remove your £10 markers I thought so too so I did remove them. Its not really an issue but one loses access to rate trends screens, despite having nothing in 1Y but it is available as soon as I removed the £10 marker for the 5Y I lost access to useful "Rate Trends" options. Whilst not too much of a big deal as I have 4 accounts between us and can see the RT screens in other accounts. (Note: I know they are not that useful for most things I like to keep track of how much is being passed through to the market on a daily basis, this may be more helpful now that our access accounts are so far back they will be blocked for some time.)
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 14, 2020 22:54:32 GMT
time to remove your £10 markers I thought so too so I did remove them. Its not really an issue but one loses access to rate trends screens, despite having nothing in 1Y but it is available as soon as I removed the £10 marker for the 5Y I lost access to useful "Rate Trends" options. Whilst not too much of a big deal as I have 4 accounts between us and can see the RT screens in other accounts. (Note: I know they are not that useful for most things I like to keep track of how much is being passed through to the market on a daily basis, this may be more helpful now that our access accounts are so far back they will be blocked for some time.) Aju mate. remove it all. Mrs Aju too all markers any excess money. sod access to this stuff.
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aju
Member of DD Central
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Post by aju on Sept 14, 2020 23:09:53 GMT
I thought so too so I did remove them. Its not really an issue but one loses access to rate trends screens, despite having nothing in 1Y but it is available as soon as I removed the £10 marker for the 5Y I lost access to useful "Rate Trends" options. Whilst not too much of a big deal as I have 4 accounts between us and can see the RT screens in other accounts. (Note: I know they are not that useful for most things I like to keep track of how much is being passed through to the market on a daily basis, this may be more helpful now that our access accounts are so far back they will be blocked for some time.) Aju mate. remove it all. Mrs Aju too all markers any excess money. sod access to this stuff. I have but its going to be a long time before our access gets released if it don't release itself in the meantime.!  (I do love a good spreadsheet) The large bulk of our funds are in fscs/govt covered accounts now for the time being this is just our play money area.  One of us has a <£10 in the 5Y anyway so for us its not really an issue and it has 46 weeks to complete!
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aju
Member of DD Central
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Post by aju on Sept 15, 2020 7:04:16 GMT
I have now tested a £10 punt back onto the 1Y (there is no 5Y in this account) and it did bring back the rate trends info so I've removed everything and if I then lose access to the rate trends across all products I will put a £10 lend into the 1Y @ highest rate possible (8% at the moment) and get the tools back as and when I need them or feel they are helpful.
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Post by diversifier on Sept 15, 2020 15:00:22 GMT
Interesting statement in that email:
“All new unsecured personal loan originations will be funded by Metro Bank in line with their stated strategy to grow in unsecured lending. RateSetter’s other lending commitments, the majority of which is secured residential property development which is not a business area of focus for Metro Bank, will continue to be funded by RateSetter investors.“
Whether or not Ratesetter investors continue to fund those “lending commitments” is completely outside Metro’s control.
They are stating their rose-tinted glasses wish list as if it were fact.
Of course, as investors continue their steady reduction in reinvestment %, soon enough the monthly funds available will fall below what is required to meet those “commitments”.
At that point, Metro will have to decide whether they will lend their own funds to balloon loans for property developers. Or if, in fact, these are only “commitments” when made with somebody else’s money, and not their own.
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Post by Deleted on Sept 15, 2020 16:17:32 GMT
Interesting statement in that email: “All new unsecured personal loan originations will be funded by Metro Bank in line with their stated strategy to grow in unsecured lending. RateSetter’s other lending commitments, the majority of which is secured residential property development which is not a business area of focus for Metro Bank, will continue to be funded by RateSetter investors.“ Whether or not Ratesetter investors continue to fund those “lending commitments” is completely outside Metro’s control. They are stating their rose-tinted glasses wish list as if it were fact. Of course, as investors continue their steady reduction in reinvestment %, soon enough the monthly funds available will fall below what is required to meet those “commitments”. At that point, Metro will have to decide whether they will lend their own funds to balloon loans for property developers. Or if, in fact, these are only “commitments” when made with somebody else’s money, and not their own. Agreed. I won't be adding any money into the 1 year market. I'm not sure I was anyway, but no one likes being taken for granted, especially with an interest haircut and possible capital haircut.
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Post by herringbone on Sept 15, 2020 16:21:09 GMT
Interesting statement in that email: “All new unsecured personal loan originations will be funded by Metro Bank in line with their stated strategy to grow in unsecured lending. RateSetter’s other lending commitments, the majority of which is secured residential property development which is not a business area of focus for Metro Bank, will continue to be funded by RateSetter investors.“ Whether or not Ratesetter investors continue to fund those “lending commitments” is completely outside Metro’s control. They are stating their rose-tinted glasses wish list as if it were fact. Of course, as investors continue their steady reduction in reinvestment %, soon enough the monthly funds available will fall below what is required to meet those “commitments”. At that point, Metro will have to decide whether they will lend their own funds to balloon loans for property developers. Or if, in fact, these are only “commitments” when made with somebody else’s money, and not their own. As it's only the secured lending that needs to be funded by RS investors, not as many will be needed. It's easy to assume that because most of the noise on this forum is from people running for the hills, that everyone else is as well, but that ain't necessarily so.
I've requested my Access money returned, but not the 1year, and I'm seriously considering putting more in the 1 year, perhaps in the New Year when we see what happens to the interest rate cut. I think having money tied up for no more than 12 months may well be acceptable.
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gmd78
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Post by gmd78 on Sept 15, 2020 16:30:05 GMT
Ratesetter’s latest missive : feel like I’ve been jilted, I haven’t received a Dear John letter for over 60 years!....  |
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jane
Posts: 145
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Post by jane on Sept 15, 2020 17:49:01 GMT
Am i reading the email correctly. Ratesetter now wants us to purely fund risky property development funds and in return we will get a pittance of an interest rate?
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jcb208
Member of DD Central
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Post by jcb208 on Sept 15, 2020 17:55:44 GMT
Sounds like it to me,so existing developments can be finished ,so investors will be funding future tranches
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 15, 2020 18:22:42 GMT
Am i reading the email correctly. Ratesetter now wants us to purely fund risky property development funds and in return we will get a pittance of an interest rate? yes and you want them to complete the funding, it is in your best interest.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Sept 15, 2020 18:23:12 GMT
Sounds like it to me,so existing developments can be finished ,so investors will be funding future tranches correct
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Post by Deleted on Sept 15, 2020 18:45:32 GMT
Am i reading the email correctly. Ratesetter now wants us to purely fund risky property development funds and in return we will get a pittance of an interest rate? yes and you want them to complete the funding, it is in your best interest. Not necessarily if a capital haircut is looming.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Sept 15, 2020 18:46:54 GMT
yes and you want them to complete the funding, it is in your best interest. Not necessarily if a capital haircut is looming. regardless of capital haircut if you do not finish the payments it will be worse
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Post by diversifier on Sept 15, 2020 20:15:30 GMT
Interesting statement in that email: “All new unsecured personal loan originations will be funded by Metro Bank in line with their stated strategy to grow in unsecured lending. RateSetter’s other lending commitments, the majority of which is secured residential property development which is not a business area of focus for Metro Bank, will continue to be funded by RateSetter investors.“ Whether or not Ratesetter investors continue to fund those “lending commitments” is completely outside Metro’s control. They are stating their rose-tinted glasses wish list as if it were fact. Of course, as investors continue their steady reduction in reinvestment %, soon enough the monthly funds available will fall below what is required to meet those “commitments”. At that point, Metro will have to decide whether they will lend their own funds to balloon loans for property developers. Or if, in fact, these are only “commitments” when made with somebody else’s money, and not their own. As it's only the secured lending that needs to be funded by RS investors, not as many will be needed. It's easy to assume that because most of the noise on this forum is from people running for the hills, that everyone else is as well, but that ain't necessarily so.
I've requested my Access money returned, but not the 1year, and I'm seriously considering putting more in the 1 year, perhaps in the New Year when we see what happens to the interest rate cut. I think having money tied up for no more than 12 months may well be acceptable.
We can differ as to the likelihood of various investor behaviours. But I still think it’s just downright bizarre for Metro to promise other people’s money over which they have no control. If you’re looking to reinvest in the New Year, all the facts will have changed by then, probably more than once, so IMHO bridges and the crossing thereof. Worth pointing out that Metro very first action on acquisition was to stop the 5yr market. The obvious point is that the 1yr RYI was stalled, which means the current reinvestment is less than or equal to the requested lending. It’s unlikely to be exactly equal, so that means they *already* have less lending money than they want for property developers. Shutting the 5yr market redirects that reinvestment to 1yr, allowing them to meet those lending commitments. Apparently this was Metro’s *highest priority* to sort out in the first hour after acquisition. So there’s a thing to ponder, what’s going on that this was such a Defcon 1 issue for them?
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