Liz
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Post by Liz on Jun 3, 2016 9:40:06 GMT
Apologies if this has already been covered (I scanned the thread and couldn't see anything), but if I go to sell my £1 holding, then the queue is currently about £43k, however there is about £60k for sale. Does that mean that SS have the other £17k - and if so, when/where did they get it? Must be underwriter parts, I assume. That was my first thought. Although if I was an underwriter who had held this to term, I wouldn't be happy about being kicked to the back of the queue.
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Post by earthbound on Jun 3, 2016 9:46:43 GMT
The new update is up in loan tab, everyone invested should read it. The update still leaves me with questions, but l won't send us around in circles again   hi Liz i cant find any other updates, will you post a link please.
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Liz
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Post by Liz on Jun 3, 2016 9:46:56 GMT
Must be underwriter parts, I assume. I wonder if people bought chunks but didn't pay up? SS would then relist behind others Maybe. Although SS might sell a performing loan on the SM to pay for it. It could be a new member who bought PBL20 and never paid. highlights another flaw in INPL. Say I sell £100k of PBL20 and buy on my partners account, which has a zero balance, then SS would be stuck with £100k of non performing loan and £100k less in cash.
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Liz
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Post by Liz on Jun 3, 2016 9:48:49 GMT
The new update is up in loan tab, everyone invested should read it. The update still leaves me with questions, but l won't send us around in circles again hi Liz i cant find any other updates, will you post a link please. Not that new anymore, it shows as one day old
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Post by earthbound on Jun 3, 2016 9:52:46 GMT
hi Liz i cant find any other updates, will you post a link please. Not that new anymore, it shows as one day old Ah thanks, i thought something new had been posted/updated, especially since bigal had also posted after the fact that there was an update, 
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Post by Deleted on Jun 3, 2016 9:53:01 GMT
The new update is up in loan tab, everyone invested should read it. The update still leaves me with questions, but l won't send us around in circles again This is the content of the new bits: We will of course keep you updated regularly on the website with the progress of the administration and any anticipated recovery and we thank you for your patience. We are keen to protect our reputation with our investors and we have set up a discretionary provision fund which enables the directors to allocate funds to make contributions towards repayment shortfalls. Whilst it is entirely within the discretion of the directors of the provision fund to make a cash withdrawal from the provision fund, we would be keen to protect our goodwill to ensure that any shortfalls in repayments to investors are mitigated.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jun 3, 2016 10:05:43 GMT
I notice that people are still buying bits of this defaulted loan on the SM...... WHY? There must be at least SOME doubt that all money wont be recovered, so why would any normal investor take the risk? Any ideas?? The poll shows that 39 out of 52 respondents believe they will get at least the capital back. I hope they are right.
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james
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Post by james on Jun 3, 2016 11:06:23 GMT
The poll shows that 39 out of 52 respondents believe they will get at least the capital back. I hope they are right. I think capital and interest but I still wouldn't suggest that anyone buys this loan. Good to see their most recent update, though.
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Post by amber on Jun 3, 2016 12:25:36 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing?
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locutus
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Post by locutus on Jun 3, 2016 12:30:55 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing? You're not missing anything. Your analysis seems spot on to me.
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Post by mrclondon on Jun 3, 2016 12:33:54 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing? There may be one or two people local to the garden centre who can do detailed due diligence on the garden centre business by visiting it and who may be able to conclude that a sale in excess of the asking price is the most likely outcome. Certainly I'd expect the £10k plus chunks that are being bought will fall into this category. The upside for any such people is being able to place that size of investment into the market in one chunk ... todays new loans on here and on AC could result in allocations of just a few hundred pounds per loan.
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SteveT
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Post by SteveT on Jun 3, 2016 12:35:53 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing? Not much. Buying into this loan is simply a gamble that Lendy will dip into their pockets (aka. the provision fund) not only to cover any capital shortfall but also to pay accrued interest. I've no idea how anyone can know at this stage if this will actually happen, including quite possibly Lendy's directors. If the asset sells quickly, with little or no capital shortfall, and no other loans default in the meantime, then I'd guess it's quite possible they may decide it is "prudent" to cover both capital and interest in full. However if it takes a long time to sell, yields rather less than the capital advanced, a lot of unpaid interest builds up and other loans are also defaulted (or likely to in due course) then it would seem most impudent to cover both capital and interest in full. Much wiser to have a little patience and buy into new loans (which pay the same rate!) rather than shop-soiled goods that offer no advantage and lots of downside risk.
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jimbob
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Post by jimbob on Jun 3, 2016 12:44:05 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing? There may be one or two people local to the garden centre who can do detailed due diligence on the garden centre business by visiting it and who may be able to conclude that a sale in excess of the asking price is the most likely outcome. Certainly I'd expect the £10k plus chunks that are being bought will fall into this category. The upside for any such people is being able to place that size of investment into the market in one chunk ... todays new loans on here and on AC could result in allocations of just a few hundred pounds per loan.
I always pondered if the people backing Marco Rubio at "odds on" on Betfair about 4 months ago knew something more, had inside info etc etc. You think they must to be placing such obvious 'looking' poor bets/making bad investments - but almost always it is not the case; and they do in fact just plain and simply have more money than sense.
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Post by amber on Jun 3, 2016 12:47:33 GMT
So at best the loan is recovered and you get your capital and 12% interest (is the accruing interest being compounded?) and at worst you suffer a catastrophic capital loss - seems like a very asymmetric pay-off. There are other P2P platforms where you can get a similar return without taking on this level of risk so I struggle to believe lack of investment opportunities is driving people to invest.
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Liz
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Post by Liz on Jun 3, 2016 12:49:40 GMT
I don't understand who would ever want to buy into this defaulted loan - lots of risk but no upside? What I'm I missing? There may be one or two people local to the garden centre who can do detailed due diligence on the garden centre business by visiting it and who may be able to conclude that a sale in excess of the asking price is the most likely outcome. Certainly I'd expect the £10k plus chunks that are being bought will fall into this category. The upside for any such people is being able to place that size of investment into the market in one chunk ... todays new loans on here and on AC could result in allocations of just a few hundred pounds per loan.
Maybe it's someone who works for the agent, and knows of a £2m+ offer. Maybe not. If someone is buying without asymmetric information, then I would not regard them of being sophisticated. Edit: I used the word "asymmetric" before I read Amber's post, not stealing words, although I stole it from my Economics text books.
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