baldpate
Member of DD Central
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Post by baldpate on Jan 7, 2015 14:41:56 GMT
Although a P2P investor for some while, I'm a very recent participant on ReBS and have only just recently been paying attention to this particular forum, so if the topic has been touched on before please feel free to point me at other threads - I looked but couldn't find anything.
Since the ReBS loanbook is still rather immature, the info on the statistics page (https://www.rebuildingsociety.com/stats/) isn't really much of a guide to the default rates we might expect for the various ReBS risk bands.
I'm wondering if anyone has any information on what default rates are expected by ReBS in the various categories (A+/A/B/C)? Alternatively, any information (evidence-based or anecdotal) as to how the use of risk bands by ReBS compares with that used by Funding Circle? For example, there is at least one loan auction currently running on ReBS (H****n H**t T********s) which has an outstanding FC loan, so it should theoretically be possible to see how FC evaluated that firm.
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wysiati
Member of DD Central
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Post by wysiati on Jan 7, 2015 15:54:10 GMT
Although a P2P investor for some while, I'm a very recent participant on ReBS and have only just recently been paying attention to this particular forum, so if the topic has been touched on before please feel free to point me at other threads - I looked but couldn't find anything. Since the ReBS loanbook is still rather immature, the info on the statistics page (https://www.rebuildingsociety.com/stats/) isn't really much of a guide to the default rates we might expect for the various ReBS risk bands. I'm wondering if anyone has any information on what default rates are expected by ReBS in the various categories (A+/A/B/C)? Alternatively, any information (evidence-based or anecdotal) as to how the use of risk bands by ReBS compares with that used by Funding Circle? For example, there is at least one loan auction currently running on ReBS (H****n H**t T********s) which has an outstanding FC loan, so it should theoretically be possible to see how FC evaluated that firm. This would be unlikely to prove a reliable comparison/exercise. Unless fundamental changes have been made the previous forum discussion highlights some potential reasons why the data should arguably be treated with caution: p2pindependentforum.com/thread/894/improvements-stats-page
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ianb
Posts: 161
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Post by ianb on Jan 7, 2015 16:25:58 GMT
I'm wondering if anyone has any information on what default rates are expected by ReBS in the various categories (A+/A/B/C)? Alternatively, any information (evidence-based or anecdotal) as to how the use of risk bands by ReBS compares with that used by Funding Circle? For example, there is at least one loan auction currently running on ReBS (H****n H**t T********s) which has an outstanding FC loan, so it should theoretically be possible to see how FC evaluated that firm. I asked Rebs this about 8 months ago after I joined the platform & the response I got was A: 1.5%, B:3%, C:4.5%. Havent tried to compare these with Flatulent Camels as I have mimimal confidence in their grading.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jan 7, 2015 16:49:16 GMT
Although a P2P investor for some while, I'm a very recent participant on ReBS and have only just recently been paying attention to this particular forum, so if the topic has been touched on before please feel free to point me at other threads - I looked but couldn't find anything. Since the ReBS loanbook is still rather immature, the info on the statistics page (https://www.rebuildingsociety.com/stats/) isn't really much of a guide to the default rates we might expect for the various ReBS risk bands. I'm wondering if anyone has any information on what default rates are expected by ReBS in the various categories (A+/A/B/C)? Alternatively, any information (evidence-based or anecdotal) as to how the use of risk bands by ReBS compares with that used by Funding Circle? For example, there is at least one loan auction currently running on ReBS (H****n H**t T********s) which has an outstanding FC loan, so it should theoretically be possible to see how FC evaluated that firm. I have been an investor with ReBs for 8 months and have approx 50 different loans. I find it very difficult to access the risk and I think there is also another factor to bear in mind. Two different platforms may have similar loans with similar security, but in the event of default who recovers the most losses. I believe there was one borrower who defaulted on both ReBs and FC at the same time, but whether they both recover equal losses will be very interesting to discover.
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baldpate
Member of DD Central
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Post by baldpate on Jan 8, 2015 10:38:00 GMT
Thanks you, everybody, for your replies - all very useful.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Jan 8, 2015 10:59:14 GMT
I have been a quite moderate investor with REBS for a bit less than a year and something like 20 loans and so far no defaults. I have also currently have over 200 loans on FC some of which date back to 2012 and I have had 13 defaults.
Recoveries are a very important issue. Originally FC subcontracted the business of recoveries to a third party, who IMHO where a waste of space. FC took a lot of flak over this and brought the recoveries back inside and set up a professional team to manage it. Again IMHO since this has happened recoveries have somewhat improved to the point where I am now getting back about 30% of my potentially lost capital. With FC defaults are continuing to occur but now don't seem to be so frequent but I don't touch C- loans.
Defaults go with the territory I am afraid but I don't have a clue about what REBS do about them.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426
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Post by sqh on Jan 8, 2015 17:11:48 GMT
There is currently a loan in auction on the ReBs site where the borrower has suddenly taken an additional loan from FC. This wasn't known when the auction started. In the event of default the FC loan gets priority. A classic example of 2 similar loans which need to be rated differently.
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Post by GSV3MIaC on Jan 9, 2015 8:59:29 GMT
In which case maybe REBS should restart the auction with different risk assessment, or just walk away entirely.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Jan 9, 2015 9:23:36 GMT
In which case maybe REBS should restart the auction with different risk assessment, or just walk away entirely. I agree,they should have walked away; but at least they gave us the opportunity to take our bids off the table-I removed all of mine.
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