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Post by Ace on Mar 24, 2023 9:41:20 GMT
Don't know if anyone has noticed lately but the unallocated cash reserves are as low as I've seen them. They were lower during Covid. I expect they'll get a boost in the new ISA season.
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Post by Ace on Mar 24, 2023 10:34:00 GMT
Don't know if anyone has noticed lately but the unallocated cash reserves are as low as I've seen them. They were lower during Covid. I expect they'll get a boost in the new ISA season. I sent an ISA transfer form to Loanpad today via email to transfer this year's ISA repayments from ABLrate. I received an email back 85 minutes later to say that they had already processed the form and sent the paperwork to ABLrate. That's pretty good service. I wonder how long ABLrate will take to process it 🤔
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Post by Harland Kearney on Mar 24, 2023 14:13:35 GMT
Don't know if anyone has noticed lately but the unallocated cash reserves are as low as I've seen them. Once rates increase in May with additional ISA allowance it could improve. It should be taken into account that the unique relationship between lending partners & Loanpad; they can fall back on them to provide liquidity in times of stress on withdrawals to the loan book & drawdowns. But at this time I don't find any alarm bells ringing, if we saw ICF-related defaults it could be another story with tighter liquidity on the books. Loanpad is the only Peer to Peer in my portfolio as from my own DD it's the only loan book that isn't toxic, misleading, or grossly generously evaluated securities inside the blackbox structure. The interest from Loanpad has been invaluable these past months.
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Post by Ace on Mar 24, 2023 20:37:54 GMT
Over half a million quid of repayments today. So, tonight's update should show an improvement in the available cash position.
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brianlom1
Member of DD Central
He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Apr 6, 2023 13:03:54 GMT
They were lower during Covid. I expect they'll get a boost in the new ISA season. I sent an ISA transfer form to Loanpad today via email to transfer this year's ISA repayments from ABLrate. I received an email back 85 minutes later to say that they had already processed the form and sent the paperwork to ABLrate. That's pretty good service. I wonder how long ABLrate will take to process it 🤔 Please forgive my ignorance but how does the ISA transfer process work? Do you accumulate cash in your Ablrate IFISA (ie not make cash withdrawals when payments are received) then transfer the aggregate amount in one transaction? Could you make multiple smaller transactions if you wished? I've been so eager to withdraw payments from Ablrate that I haven't even considered the tax implications of investing funds elsewhere
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Post by Ace on Apr 6, 2023 13:15:57 GMT
I sent an ISA transfer form to Loanpad today via email to transfer this year's ISA repayments from ABLrate. I received an email back 85 minutes later to say that they had already processed the form and sent the paperwork to ABLrate. That's pretty good service. I wonder how long ABLrate will take to process it 🤔 Please forgive my ignorance but how does the ISA transfer process work? Do you accumulate cash in your Ablrate IFISA (ie not make cash withdrawals when payments are received) then transfer the aggregate amount in one transaction? Could you make multiple smaller transactions if you wished? I've been so eager to withdraw payments from Ablrate that I haven't even considered the tax implications of investing funds elsewhere Unfortunately you've picked the worst possible day of the year to ask. I've been withdrawing all payments from ABLrate throughout the tax year as flexible ISA withdrawals. A couple of weeks ago I returned all of the withdrawn payments to ABLrate, as flexible ISA returns, and completed a transfer form on Loanpad to transfer those funds in, thus preserving the ISA status of those funds. ABLrate only allow one fee free transfer out per year, so end of tax year is a good time. Any ISA funds that you withdrew in the past tax year (so up until yesterday) and did not pay back to the account they came out of (ABLrate) will now have lost their ISA status. Sorry to be the bearer of bad news.
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brianlom1
Member of DD Central
He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Apr 7, 2023 12:17:52 GMT
Please forgive my ignorance but how does the ISA transfer process work? Do you accumulate cash in your Ablrate IFISA (ie not make cash withdrawals when payments are received) then transfer the aggregate amount in one transaction? Could you make multiple smaller transactions if you wished? I've been so eager to withdraw payments from Ablrate that I haven't even considered the tax implications of investing funds elsewhere Unfortunately you've picked the worst possible day of the year to ask. I've been withdrawing all payments from ABLrate throughout the tax year as flexible ISA withdrawals. A couple of weeks ago I returned all of the withdrawn payments to ABLrate, as flexible ISA returns, and completed a transfer form on Loanpad to transfer those funds in, thus preserving the ISA status of those funds. ABLrate only allow one fee free transfer out per year, so end of tax year is a good time. Any ISA funds that you withdrew in the past tax year (so up until yesterday) and did not pay back to the account they came out of (ABLrate) will now have lost their ISA status. Sorry to be the bearer of bad news. Doh ... I cocked that one up - still, not my biggest P2P disaster of recent times ... thanks for the clarification, much appreciated
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Post by Ace on May 17, 2023 6:50:57 GMT
Loanpad reached a milestone of £100m of loans repaid.
Total funds on platform continue to inch towards £80m.
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Post by Ace on May 18, 2023 7:10:24 GMT
Total funds on the platform crossed the £80m milestone for the first time today.
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scooter
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Post by scooter on May 18, 2023 19:40:57 GMT
I'm not currently invested in LP (because my money is being held hostage by AC) I had to withdraw earlier this year. LP looks like a good place to put money back into, but i wonder if the more clued up investors on here have any views as to why LP won't go the same way as AC in the future? What are LP doing that makes it different? We all turned to AC for flexibility and better interest rates, the exact same reason I would go back to LP and it hasn't turned out so well.
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firedog
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Post by firedog on May 19, 2023 7:32:37 GMT
LP looks like a good place to put money back into, but i wonder if the more clued up investors on here have any views as to why LP won't go the same way as AC in the future? It isn't run by Stuart Law would be the flippant answer. But there's no way to guarantee anything and I can only point to past performance, which is no guide etc etc. But that's really what has set it apart for me from the likes of AC and Ratesetter. I started my P2P journey with all three within weeks of each other in 2019 and after a short time - and especially when the pandemic started – it seemed clear that Loanpad was the best run, despite being much smaller. It combined lower risks (LTV) with comparable or better rates, plus daily interest and the freedom to withdraw your money any time. It supplemented these with clear – and reassuring – communication that was borne out by its actions. AC at that stage had already spiralled into 'blame the investor' mode, and I shifted away from AC as soon as I could.
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Post by Harland Kearney on May 19, 2023 13:07:34 GMT
I'm not currently invested in LP (because my money is being held hostage by AC) I had to withdraw earlier this year. LP looks like a good place to put money back into, but i wonder if the more clued up investors on here have any views as to why LP won't go the same way as AC in the future? What are LP doing that makes it different? We all turned to AC for flexibility and better interest rates, the exact same reason I would go back to LP and it hasn't turned out so well. There is still significant risk as with any P2P platform born from platform risk. This is really the primary driving risk that I don't think any P2P platform can shake off. Therefore, it is best to keep one's exposure in line with the rest of there portfolio. These below are just some of my opinions, having been invested in Lendy, Funding Secure & AC (exited all of them with less than 1k lost before the bells tolled, I consider myself very lucky) LP has a better relationship with its own loans due to the lending partner relationship. You can read it up on the site & loan information but essentially we are given the lowest interest section (often referred to as the Senior Tranche) whilst lending partners take on the Junior tranche. This is important as it reduces lender exposure to a defaulted loan & increases the likelihood of 100% capital return (where the Lending Partner takes the hit due to owning the Junior higher earning section). With accurate valuations & LTVs this is a big factor in lender protection on top of the income cover fund, but as we know from AC. These funds maybe able to take on one or two loans, but above that the portfolio needs to be watertight, no number twisting will fix inaccurate LTVs at the source. Additionally & often overlooked this can reduce moral hazard which is a big factor in AC's downfall in my opinion. When platforms are the only ones in control of which loans go & which get declined risk takes a back seat in favor of higher pipe loan numbers for higher profits. LP's helps mitigate (but will never defeat) those risks. It gives two parties DD on the loan, one without LP's investors in the moral hazard seat. I sound like I'm really selling them, but I will say as I said at the start. I would use LP to use up interest-free allowance for the year in the most ideal situation, the income offered by LP whilst decent is not market-rocking for the risk in the grand world of investment. Huge capital loss is a real risk as you may well know from other parts of this board in P2P. I hold significant assets with LP as they make the interest baring part of my portfolio. I am not invested in any other P2P sites at this time, non of them satisfy the risk management part.
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scooter
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Post by scooter on May 19, 2023 17:25:57 GMT
I wonder if there is an increased risk of them just changing their minds and deciding that they will change direction and go into the wind down process like so many others. At which point we are all trapped again just as with AC. Some P2P platforms PL, KK you don't really invest in for flexibility. If they go into the wind down process it would be just largely business as normal without a secondary market presumably. LP & AC are all about flexibility, at least for me and we accept lower interest rates for it. I don't want to be there when the music stops.
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Post by Harland Kearney on May 19, 2023 18:01:17 GMT
I wonder if there is an increased risk of them just changing their minds and deciding that they will change direction and go into the wind down process like so many others. At which point we are all trapped again just as with AC. Some P2P platforms PL, KK you don't really invest in for flexibility. If they go into the wind down process it would be just largely business as normal without a secondary market presumably. LP & AC are all about flexibility, at least for me and we accept lower interest rates for it. I don't want to be there when the music stops. Unless they are in violation of regulations like Collateral, this is usually the process of a slow train crash. AC was & I say it bluntly as I said it in the wind-up thread, an obvious result. It was clear they were off-loading retail months if not over a year before its eventuality. For ZOPA the business was sold off & it was clear they were moving into banking years before this. With Lendy it was obvious months before, I do remember some very vocal members who no longer post here screaming the alarm bells & getting belittled for their warnings. I heeded those warnings. Funding Secure was very much the same way, with some added Fraud. I think this is an inherent risk in P2P, it's the main driving risk from my point of view, an elephant in the room so to speak that I can't see an easy solution for. Loan Pad surviving COVID I think was a really really good result. It showed Lenders they can take the heat & it gave Loanpads management experience in that climate in real-time. The issue AC ran into was technically the same as Loanpad, but one had Lending partners to fall back on, and the other did not instead hoping to use ISA seasons & the **provision** fund. You can guess who is who. I don't think AC made any real attempt outside of what was required to not end up being in administration by the FCA to rescue investors' liquidity. Let's not even get started on the original return of funds being unbalanced toward smaller investors...
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Post by Ace on May 19, 2023 18:32:30 GMT
If Loanpad did go into a wind-down the loans themselves would continue to be managed by the lending partners. Managing the Loanpad platform should be able to be done on a shoestring, certainly within the platform margin on the loans, as the platform is already profitable. There really would be very little to do since no new loan generation would be required.
Yes, the current flexibility of withdrawals would be stopped, with lenders having to wait for the individual loans to repay, when they would receive their share of the loans pro rata. Unlike AC, there are no future funding requirements so all repayments of capital could be immediately returned to lenders. For instance, there are 33 loan parts from 12 loans totalling £6.857m due to be repaid within the next 30 days, which represents 8.7% of outstanding capital. There is usually a further 1% to 3% of capital held in cash, which could be instantly returned. All 189 extant loans are due to repay within 12 months, so I would expect the vast majority of funds, plus interest, to be returned gradually over that timespan. Some loans are bound to drag on longer, and loan terms can be up to 24 months, so it's likely that a rump would drag on for longer.
A wind-down on LP should be a stark contrast to that at AC. There should be no need for retention of repayments to fund future tranches, and no need for fees to be introduced, and the maximum loan terms of 24 months are much lower than AC's 60 months. There are also likely to be far fewer defaults and losses than AC given that LP has a maximum LTV of 50% and an average of 43%. I would be surprised if there were any losses on LP.
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