Post by tjtl on Dec 3, 2020 13:04:18 GMT
The Good, the Bad, and the Ugly
Coming to the end of a year that will live long in the memory- but not for the right reasons- I reviewed my experience with the P2P platforms I have had the pleasure to lend to/ invest in/ seen reduce my wealth, and give my own awards to. If anyone else has better suggestions from their own experience delighted to hear them.
In thinking which platform might, from my experience only, qualify for a Good award I really struggled. It is like the list of TV Sports Personalities of the Year (do they have a personality? Any of them? Ok they have money, and are good at what they do, but is that the best the panel of experts could come up with?)
But back to P2P – and who might get a Good.
At a push I am tempted to included Assetz- negatives were the confusing communications, communications designed to create concern and shoot themselves in the foot , the bizarre decision to move away from pro-rate distributions, the lenders fee (so a lot of negatives), the over-riding positive is capital preservation, and I do think the management have tried really hard to be fair (unfortunately the execution of intent hasn’t always been competent- we could call this the “Matt Hancock Syndrome”) . But I have made money out of Assetz- and with a narrowed margin on secondary sales could get out now with all capital safe and a decent return- given the awful year they deserve a Good rating. Total still on platform low 6 figures, and slowly withdrawing.
Ratesetter similarly- I am bored with this holding, but that is my fault. I joined the queue to sell- saw how long the queue was and withdrew, only to re-enter two days (and 3,000 places) later. But again, capital has been preserved (for now) even if there is no sign that the 50% interest rate haircut is going away anytime soon. I have 5,962 sellers ahead of me, am hoping that it holds up for the next few months, am grateful to Metro bank for coming on Board, and think on balance the platform just about scrapes a “Good”. Total still on platform low 6 figures – and am withdrawing daily
The rest all fall into Bad or Ugly. Which first.
Funding Circle- A year of negative returns. I am heartly sick of seeing that bearded smiling face on their website every time I log on (you will have seen him- looks very pleased with himself). Have been getting cash out- but as we have all worked out the ones who took the real cash out were those who benefitted from the IPO. Give it a Bad rating (as the seventh circle of Hell is crowded already) Amount left on platform low 5 figures- and am getting out as fast as possible.
Relendex- I quite like Relendex- but their patchy updates, their pretence that no investor has lost money (when in the loans I am exposed to North Molton, Evesham, Greater Manchester, London Residential all look as though losses will occur), their practice on showing ever-increasing accrued interest on sites in your dash-board when they know no interest will be earned (see above for a list of four) , is just misleading. This is a Bad. Amount still on platform mid 5 figures- have sold all I can, am now locked in until they can exit the ten loans I am exposed to.
Bondora. Why did I ever invest on this platform? Statistics quoted just don’t add up. I am apparently showing a healthy gain, but the value of my total holding has gone down with no income taken out. Have just about completely exited and have no desire to stay a second longer than needed. Bad.
Zopa. I should have created a “mediocre” category. I only have a couple of K left here, am quietly exiting. Seem to have done a decent job in not losing money, but hard to justify putting any money here rather than a building society
Wellesley. The outright winner in the Ugly category. This cost me a low to mid-five figure sum – ok most of the fault was mine- I made the mistake of trusting them. As the CVA progressed the level of incompetence/ avarice/ manipulation became clear. Wellesley was a dog to end all dogs. As said- it is in the seventh circle of hell as far as I am concerned.
Apologies for the ramble above- a quiet Thursday lunchtime on a dreich December day.
Coming to the end of a year that will live long in the memory- but not for the right reasons- I reviewed my experience with the P2P platforms I have had the pleasure to lend to/ invest in/ seen reduce my wealth, and give my own awards to. If anyone else has better suggestions from their own experience delighted to hear them.
In thinking which platform might, from my experience only, qualify for a Good award I really struggled. It is like the list of TV Sports Personalities of the Year (do they have a personality? Any of them? Ok they have money, and are good at what they do, but is that the best the panel of experts could come up with?)
But back to P2P – and who might get a Good.
At a push I am tempted to included Assetz- negatives were the confusing communications, communications designed to create concern and shoot themselves in the foot , the bizarre decision to move away from pro-rate distributions, the lenders fee (so a lot of negatives), the over-riding positive is capital preservation, and I do think the management have tried really hard to be fair (unfortunately the execution of intent hasn’t always been competent- we could call this the “Matt Hancock Syndrome”) . But I have made money out of Assetz- and with a narrowed margin on secondary sales could get out now with all capital safe and a decent return- given the awful year they deserve a Good rating. Total still on platform low 6 figures, and slowly withdrawing.
Ratesetter similarly- I am bored with this holding, but that is my fault. I joined the queue to sell- saw how long the queue was and withdrew, only to re-enter two days (and 3,000 places) later. But again, capital has been preserved (for now) even if there is no sign that the 50% interest rate haircut is going away anytime soon. I have 5,962 sellers ahead of me, am hoping that it holds up for the next few months, am grateful to Metro bank for coming on Board, and think on balance the platform just about scrapes a “Good”. Total still on platform low 6 figures – and am withdrawing daily
The rest all fall into Bad or Ugly. Which first.
Funding Circle- A year of negative returns. I am heartly sick of seeing that bearded smiling face on their website every time I log on (you will have seen him- looks very pleased with himself). Have been getting cash out- but as we have all worked out the ones who took the real cash out were those who benefitted from the IPO. Give it a Bad rating (as the seventh circle of Hell is crowded already) Amount left on platform low 5 figures- and am getting out as fast as possible.
Relendex- I quite like Relendex- but their patchy updates, their pretence that no investor has lost money (when in the loans I am exposed to North Molton, Evesham, Greater Manchester, London Residential all look as though losses will occur), their practice on showing ever-increasing accrued interest on sites in your dash-board when they know no interest will be earned (see above for a list of four) , is just misleading. This is a Bad. Amount still on platform mid 5 figures- have sold all I can, am now locked in until they can exit the ten loans I am exposed to.
Bondora. Why did I ever invest on this platform? Statistics quoted just don’t add up. I am apparently showing a healthy gain, but the value of my total holding has gone down with no income taken out. Have just about completely exited and have no desire to stay a second longer than needed. Bad.
Zopa. I should have created a “mediocre” category. I only have a couple of K left here, am quietly exiting. Seem to have done a decent job in not losing money, but hard to justify putting any money here rather than a building society
Wellesley. The outright winner in the Ugly category. This cost me a low to mid-five figure sum – ok most of the fault was mine- I made the mistake of trusting them. As the CVA progressed the level of incompetence/ avarice/ manipulation became clear. Wellesley was a dog to end all dogs. As said- it is in the seventh circle of hell as far as I am concerned.
Apologies for the ramble above- a quiet Thursday lunchtime on a dreich December day.
