hendragon
Member of DD Central
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Post by hendragon on Jan 4, 2015 21:00:14 GMT
It is estimated that £32billion is invested in cash ISAs annually, with an average return of 1.7% (obviously many paying a pittance, and most below the long run inflation rate). If P2P lent £1billion approx in 2014 then this puts P2P in perspective. It gets press because it's new and sexy, but it is indeed a drop in the financial services ocean. Moreover, much of the stated £1billion P2P lent is institutional, although not at RateSetter. It would be interesting to get this split across all platforms. This is the case at the moment. The major supermarkets thought that the discounters would never bother them. P2P lending seems to be increasing on a geometric progression with quite a substantial common ratio. The question is where will it end? It would be quite entertaining the the Financial Services industry got as big a kick in the fundament from p2p as "Tescburysons" have had from the discounting retailers.
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Post by GSV3MIaC on Jan 4, 2015 21:30:05 GMT
... P2P is still well risky compared to a mixture of asset classes. Can you envisage circumstances where let's say AC and Ratesetter and FC all hit the buffers at about the same time, whereas Building Society accounts / equities / corporate bonds still have value? Yep, but then I have a good imagination. 8>.
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Post by Deleted on Jan 4, 2015 21:48:43 GMT
The Economist has a good article slicing (or leaning) an Investment Bank apart showing roughly which bits make up a P2P or P2B and which parts have been thrown away. I suspect that both types are still charging the client (Lenders or Borrowers) too much for the Investment bank service they offer. FC ask a mere 1% (but why 1, why not 0.21657%) just like the old banking days in M&A 1% sounds like such a "sensible/fair" figure. Rant over. I'm investing 2% of my capital in three portals, half came from the Post Office (no really) which was offering me 1%, and half from an equity account which was proving hard to invest during the sideways moving market this last year. Since I don't want to pay higher income tax (capital gains are cheaper) it limits me to the 4-6% Good article at p2pindependentforum.com/thread/1764/64m-pipeline-cashback-on about a university researching the industry. |
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Post by batchoy on Jan 4, 2015 21:51:51 GMT
It is estimated that £32billion is invested in cash ISAs annually, with an average return of 1.7% (obviously many paying a pittance, and most below the long run inflation rate). If P2P lent £1billion approx in 2014 then this puts P2P in perspective. It gets press because it's new and sexy, but it is indeed a drop in the financial services ocean. Moreover, much of the stated £1billion P2P lent is institutional, although not at RateSetter. It would be interesting to get this split across all platforms. This is the case at the moment. The major supermarkets thought that the discounters would never bother them. P2P lending seems to be increasing on a geometric progression with quite a substantial common ratio. The question is where will it end? It would be quite entertaining the the Financial Services industry got as big a kick in the fundament from p2p as "Tescburysons" have had from the discounting retailers. However the difference between the Supermarkets scenario (I do wish they wouldn't describe the likes of Lidl and Aldi as discounters as they don't discount they just have a different model, it is the major supermarkets who do all the offers and discounts) and P2P is that the P2P is opening up to institutional investors so there is the potential that the institutions (Banks) will crowd out the smaller investors with the P2P platforms welcoming the institutional money. As for my P2P funds it's all what I consider to be disposable since it is additional to what I have built up through my own devices. Some is from an inheritance, the bulk of the remainder from an investment in a family business overseas that I made over twenty years ago not expecting any return. About 50% of the funds that I have recently pulled from AC have gone back into that business as the local GDP growth rate is about twice that of the UK, business is booming and new Plant is required to support a new set of contracts. The remainder of the funds is set to go into the resurrection of a second family venture, the UK end of which only closed down because people retired and not because there was anything wrong with the business.
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pikestaff
Member of DD Central
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Post by pikestaff on Jan 5, 2015 8:15:19 GMT
samford71 I agree with your 2nd paragraph. As regards the first, I'm well on the way to my target 20% in p2p (which I could yet revise upwards) but I suspect I've got much less to deploy. My stocks and shares ISAs achieved a 7.8% return last year which is not stellar but acceptable. I have no gilts exposure in my ISAs because it seems to me that the only way is down. But I thought that a year ago too!
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Post by westonkevRS on Jan 7, 2015 8:06:39 GMT
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webwiz
Posts: 1,133
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Post by webwiz on Jan 7, 2015 20:07:06 GMT
Where is all the P2P money coming from? Well individual answers can be found above. But the general answer is that it is coming effectively and indirectly from the government printing presses. The Funding for Lending scheme involved the government lending money it did not have to banks etc at low interest rates so the banks did not need savers money and turned off the savings tap by reducing interest rates so that we put our money into p2p instead of orthodox savings accounts.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Jan 7, 2015 20:40:56 GMT
Of course the day will come when the banks need our money again and they will discover that it is no longer there for them. Where will the massive salaries and bonuses come from then? The whole financial services sector has been ripping off the public for years and it is our turn now. In future we will no longer need the 'advisers' and fund managers to help themselves to a large slice of our savings.
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