I just had a look at my December transactions and found that virtually all my 1-year loans (18 out of 21) will be paid off on 16 December. This was not the case when i last looked, just a few days ago.
I've checked the details for a few of these loans, and they seem to be genuine early repayments rather than Provision Fund payouts. The loans were set up on various dates between February and October 2020.
Does anyone else have this? I've seen nothing from RS about a sudden reduction in the loan book.
Last Edit: Dec 16, 2020 20:23:22 GMT by Ton ⓉⓞⓃ: To add "RS" to the title
Me too. There'll be some very large outflows of cash from RS come December 17th, unless people are daft enough to recycle into Access. I have to wonder what this will do to the Provision Fund. Possibly make it look healthier if the overall business is shrunk significantly?
No need for stealth, there's a massive queue of lenders trying to escape.
If they're offloading their property secured loans in the current environment, surely the remainers will be left with an even more concentrated portfolio of eventual bad debt.
I see that some are so keen to stay that they're offering to lend at 0.8% (an actual 0.4% after extra PF contribution). Make no sense in my book.
I'm an equity investor in AxiaFunder and a minor equity investor in Brickowner, Crowdstacker, Proplend, ABLrate, CrowdProperty, Assetz Capital, Elfin Market, Qardus, Loanpad & Shojin (and regrettably Fund Ourselves). This time next year I'll be a miwionaire Rodders!
Perhaps its just an admin thing , connected to a software update, all the loans finish on the 16th, then re start on the new software on the 17th?
Possibly. However, I doubt it.
I suspect metro might have funded a buy out of property It would make sense and they would have assets to claim against. However, if they did that why not do it all. So if I had to bet I would say it was sold externally. I have no proof of this but, chances of it being admin just seem to odd, metro funding just property makes some sense but not enough to not settle all the loan book. External funds makes more sense, moreover, no liability for metro and they can also watch us, the investor, the problem, go away at no cost to them. As they clearly stated multiple times, ratesetter will continue to manage their own book (under or not under supervision is a separate matter).
If it is the last of the 3 options, external funds. The queue will bit hit hard, by how much, it would seem a fair bit, as ratesetter's underwriting of property seemed to be the constant over the past 12 months as they had 'obligations' so they say to fund existing projects. I purely speculate but I suspect this result in lots of money back and the '0 capital loss' story to continue.
Two things are clear, if I am right. Metro will have a bigger and bigger steal of a purchase. Remaining investors will be with a tighter provision fund, that will make it interesting.
5 yr market lender offering 1.1% 1 yr 1.6% Max 1.8% Plus 1.3% Access 0.8%
not mad. Simply no demand. The product that Ratesetter offers to the investor is dead. Within 12 months the book will be nominal and the remaining hardcore fanatic investors will be playing russian roulette with their funds.
p2p is not dead but ratesetter investment, sadly is.
Only one of my 1 Year loans isn't being repaid on the 16th. From a sample of those repaying tomorrow they all seem to be around the £250k mark for the total borrowed (although not exactly the same), the one remaining is much less.
For the "2. they are all repaid" option my only thought is whether it's a larger borrower with multiple projects/properties that is now in a position to close or transfer their loans. That idea doesn't give me much confidence though so I hope that it's not the case here.
I don't see the same thing for my 5 year or Max loans (I don't have anything in A/P)