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Post by nooneere on Aug 18, 2022 21:19:17 GMT
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Post by Ace on Aug 18, 2022 21:39:40 GMT
I'm pretty sure that I don't qualify for either. Of the two, I'd quite like to try the former. Not keen on trying the latter. I was watching it live, but lost my vision half way through due to an incoming migraine. I did listen to the second half, but couldn't watch. I was a little surprised that he picked up on this thread today as I'sent him a link to it back in Jan. It's a bit out of date now. I'm looking forward to his list of upcoming guests.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,315 
Likes: 11,523
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Post by ilmoro on Aug 18, 2022 22:12:47 GMT
I'm pretty sure that I don't qualify for either. Of the two, I'd quite like to try the former. Not keen on trying the latter. I was watching it live, but lost my vision half way through due to an incoming migraine. I did listen to the second half, but couldn't watch. I was a little surprised that he picked up on this thread today as I'sent him a link to it back in Jan. It's a bit out of date now. I'm looking forward to his list of upcoming guests. Dont tell him your name, Pike  
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Post by The Money Platform on Aug 30, 2022 14:46:06 GMT
| Platform | XIRR to end 2021 | Notes |
|---|
| ABLrate | 11.06% | Still one of my favourite platforms, but confidence has been shaken by the sheer number of loans that are struggling. I trust ABLrate to get as many back on track as possible. I do feel overexposed here, so I'm reducing my exposure a little by withdrawing income/repayments from my standard account. I'm still reinvesting in the ISA. XIRR has dropped due to forbearance. It should jump back if the AF loans get their outstanding interest capitalised. ASMX provides a very capable SM, but I'm still not seeing any benefits over the old SM. Communication to lenders needs to be improved. | | Assetz Capital | 9.59% | I'm generally withdrawing as loans run down due to lack of new loans for retail customers that compete favourably with loans elsewhere. It's a shame for me as I liked their SM a lot and made decent profits from it. My XIRR is now falling as my favourite and largest "diamond" loan has fully repaid. I'm expecting some losses from my remaining loans, but i don't expect my overall XIRR to fall below 7%. It's possible that I could return if their Access Accounts become fully operational at acceptable rates, or the rates on the MLA become competitive again. | | Assetz Exchange | 13.23% | New in Sep 2019. I feel that I was exceptionally lucky to get in early here as the bulk of the paper profits are due to premiums increasing since I bought. I'm generally withdrawing repayments, but sometimes reinvesting when something of value appears. I don't understand why lenders are prepared to pay such high premiums for some of the charity lease loans. The premiums plus buying and selling costs/fees could easily wipe out 10 years worth of income, so you would be solely reliant on the property price for any gain if lenders voted to sell after a 10 year lease. Yields would be ok if the properties are perpetually leased, but you are then relying on the premiums still being high when you eventually want to sell. | | AxiaFunder | 3.71% | New in Jan 2019. A few more cases have completed. My return is low so far due to a large premium I payed for a loan on the SM which hasn't yet completed. No losses so far. Eventual XIRR is very difficult to estimate here as it could vary wildly between a big loss and a big profit. To have a stab, I calculated that, if all loans completed last Nov and paid all of the accrued interest, but the 2 largest accruals become zero and 2 of 9 loans are average capital write-offs, my XIRR would be 20%. I'd be happy with that. | | Blend | 1.48% | New in May 2021. Property development loans with a £1k minimum. Too new for the return figure to be meaningful It just represents a referral bonus as no loans are repaying yet. I like the loans here, but cash drag required to get invested and lack of an ISA means the funds will probably go elsewhere. Crazy autolend mechanics requiring idle funds on the platform needs to be addressed. | | Brickowner | 0.21% | Again, the return so far is just from cashbacks as my investments only pay at maturity and none have matured yet. I seem to be in perpetual delays on this platform. The loans look good, but XIRRs will be reduced by the delays. I've stopped taking on new loans here until some of my existing loans conclude. The introduction of monthly loan reports is welcome, but could be improved with clearer and expanded commentary. The introduction of an SM is also welcome. | | British Pearl | -6.44% | New in May 2019. They've took a rash decision during Covid to sell all properties at a loss to a platform backer, leaving me with an unnecessary loss!!! I'm now fully out and won't be back. | | CapitalRise | 5.05% | New in Feb 2019. Becoming another favourite. XIRR is understated as loans pay interest at maturity, would be 9.5% including accrued interest, but new rates seem to be falling. | | Connective Lending | 6.66% | New in Feb 2021. A welcome addition to the pawn loan market. Too early to say how this platform will turn out as they haven't been running for a year yet, but seems to be running smoothly so far. I'd say it's quite positive from the loans point of view, which is the main thing. The website is fairly poor, and doesn't work well on my android tablet, where it takes nearly a minute to log in or return to the Dashboard page. | | CrowdProperty | 4.88% | New in Jan 2019. Already one of my favourites. Seems to have exceptionally good DD. Many loans pay interest at maturity, so XIRR is understated. On the negative side, I think there are a few issues on the lending side that they could and should have addressed by now. | | Crowdstacker | 5.78% | Reduced XIRR due to exposure to the A*th*nt*c Al*h**s* loan default. This platform seems to be pivoting towards being a property development loan platform. Time will tell whether they can pull it off. | | Elfin Market | 8.82% | New in Feb 2020. Very small toe in water. I've invested more in the equity than the loans. I'm cautious with investing on unsecured consumer loan platforms as I haven't had one that was really worth the risk yet. Perhaps this one could be the one. The returns have been good so far, but they're well above their forecast returns. I doubt that this will be maintained. I'd like more transparency as a lender. | | Funding Circle | 3.16% | The incompetence of this platform is well documented elsewhere. I'm trying to pull out. Only unsellable loans left for me. Outstanding capital has reduced by 60% this year. | | Growth Street | 6.98% | Fully exited and closed. A shame. I quite liked this platform. | | Grupeer | 4.52% | I'm trying to exit my euro platforms. This platform has completely stalled since May 2020. No payments or account updates of any kind since then. | | HNW Lending | 6.75% | New in Dec 2020. Asset based loans with a minimum of £10k (£5k in ISA or autolend). Very outdated website. My loans are running smoothly once they start. I've suffered quite a bit of cash-drag due to loans not starting when forecast, and some being cancelled. I may reduce exposure when loans repay as rates have been falling. | | Kuflink | 14.80% | My XIRR is massively boosted here by early bonuses. My underlying return is 6.58%. I would have invested more in Kuflink if they had kept their original 20% first loss skin. I steer well clear of any 2nd tier and higher loans as the rates are too low on these for the risk. I've been withdrawing from Standard loans, but will add more funds now that self-select is allowed from ISA transfers in. | | Landlord Invest | 9.68% | New in Feb 2019. Running smoothly, but not enough loans. SM is very liquid. Will add more via ISA when I can. | | Lending Works | 4.67% | I greatly reduced my exposure to this platform in Dec 2019 as I was annoyed/concerned that they took too long to react to the rapidly shrinking PF issue. I stupidly left some funds in my IFISA, which are now trapped. XIRR has been shrinking for more than a year due to "negative interest". | | LoanPad | 6.02% | New in Sep 2019. Another favourite. Safest platform in P2P. Rolling withdrawals work well for quicker access in Premium account. My return is high due to referral interest rate boosts, but now falling as these come to an end. | | Lendy | 3.33% | I only have a small investment trapped in administration here thanks to the warnings on the forums. I expect to make a large percentage loss, but a very small loss in absolute cash terms. | | Mintos € | 14.90% | Good return. Now running down as they don't accept new investments from UK investors. Almost nothing left. | | Mintos £ | 11.76% | Good return. I'm completely out since Sep 2020. | | MoneyThing | 7.13% | This platform is now in administration. I'm expecting losses. 20% of outstanding capital was returned this year with more to come, hopefully. | | OnStep | 3.01% | New in Feb 2020. An Unbolted cousin. I like the concept. Most profit expected at end of loan through property equity, so initial XIRR will be low. Still only 1 loan ever on this platform, so doesn't look like it's going anywhere. | | Property Partner | 7.55% | I'm passively withdrawing from this platform as the fees are too high for small investors. | | Proplend | 10.40% | Another favourite. New VAT loans look like an interesting and needed expansion. I'm trying to shift from Standard to ISA. | | Qardus | 17.99% | New in Oct 2020. Sharia compliant platform. Early days, but returns have been very good so far. So good that I'd have to vote this as the platform of the year. I've benefited from promotional programs (QBoost and QFirst). I hope they can keep it going. | | Rate Setter | 4.46% | Never been keen on this platform, which has now closed. Was always too much hassle for too little return. Out now. Glad to escape without a capital haircut. | | Robocash | 12.44% | I'm withdrawing from my euro platforms. Can't complain about the returns. Fully out now. | | Shojin | 0% | New in Oct 2021. Higher risk/return development loans with a £5k minimum. I have high hopes. | | SoMo | 9.76% | New in Dec 2020. Bridging loans with a £5k minimum. My loans have done well, but new rates are too low for me, so I'm drawing down. | | Unbolted | 9.40% | Another favourite. A consistent performer with stable returns. I like it for diversification into pawn loans. Difficult to get funds deployed. I hope to be able to add a bit more. | | Uown | 8.19% | Potential for higher returns at end of investments. I like Uown, but I seem to be in the minority. Only 1 loan left now, so will probably withdraw when it completes. | | Welendus/Fund Ourselves | 4.83% | I lost all faith in this platform. I'm finally out without a loss, but took over a year to withdraw, which ruined the return. | | Zopa | 3.13% | Feels like the risk v reward balance is too heavily weighted on the risk side. I've been withdrawing for more than a year. Should be out next month when they close to lenders. A waste of time for me. |
This does not include the whole P2P universe, for example, The Money Platform, one of the last Consumer Credit P2P firms (which I represent) in the UK is not included. The Money Platform's Outcomes Statement is published here: themoneyplatform.com/outcomes-statementTheir figures are shown post tax (assumed at 40%), uninvested weighting (25-35%) - so gross-ing up for those, I think it might sit at the top of your table. Though unsure if you have removed cash drag and tax from your numbers?
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Post by Ace on Aug 30, 2022 16:16:18 GMT
This does not include the whole P2P universe, for example, The Money Platform, one of the last Consumer Credit P2P firms (which I represent) in the UK is not included. The Money Platform's Outcomes Statement is published here: themoneyplatform.com/outcomes-statementTheir figures are shown post tax (assumed at 40%), uninvested weighting (25-35%) - so gross-ing up for those, I think it might sit at the top of your table. Though unsure if you have removed cash drag and tax from your numbers? , there was no intention for this thread to cover "the whole P2P universe". This thread is simply a record of how my personal P2P investments have performed to date, and that of a few other investors that were prepared to share their experiences. My figures include cash drag. The figures are pre-tax, but for me that happens to be the same as post-tax since I managed to avoid tax completely from my P2P investments that year by using the various available allowances and nill rate bands.
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Post by The Money Platform on Aug 30, 2022 16:37:16 GMT
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 6, 2022 13:10:24 GMT
Latest 3 month performance update ... |
| | | | | Platform | Q2 2022-3 | 2021-22 XIRR | 18m XIRR | Comments | Ablrate
| 2.58% | 5.39%
| 4.54% | Winddown, majority of loans non-paying | | Assetz Capital standard | 5.94% | 6.61% | 6.38% | Have moved to full MLA now, so XIRR will increase. MLA only return 6.25%. Topped up a bit to take advantage of new opps. | | Assetz Capital ISA | 4.46% | 4.20% | 4.28% | Mainly Access accounts, rebalancing towards MLA, MLA only return 11.25% due to accrued interest payments. Static investment level | | Assetz Exchange | 2.35% | 15.09% | 9.04% | Holding at current level and rediversifying as new loans launch and taking capital gains. Quite volatile market currently. Stripped out Q2 return, incl realised capital gains, is 6.85% | | Brickowner | 3.42% | 2.09% | 2.53% | In limbo as unable to verify. Profits mostly due at term and somewhat delayed in some cases. | | Crowdstacker | 0.3% | NA | 0.3%* | New for Q2, interest at term, cash drag, pulled loans mean no real comparable figures | | Easymoney | 3.04% | 2.21% | 2.72% | Minimum investment to get perks as rates too low for more. Factor in savings from perks and rate a healthier 6% | | Elfin Market | 6.56% | 6.49% | 6.52% | Steady performer. Slight increase due to moving to 1 year loans. Small top up | | Fund Ourselves | 17.2% | 12.27% | 13.85% | Best performer on paper but not sure if Ill ever see it. Appalling website & service making it uninvestable. Accrued interest distorts returns. Drop in return as hasnt paid out PF interest for several months again | | Landlordinvest ISA | 21.35% | 6.68% | 10.19% | Resolution of default inflating return. Exit on hold due to better SM availability allowing diversification. Solid platform | | Leap Lending | 0.87% | 1.6% | 1.31% | Baffling ... totally impossible to invest | | Lendwise | 8.05% | -8.12% | 7.65% | Ticking along, have added another toe (New in 21/22 & purchase of accrued interest makes negative return) | | Loanpad standard | 6.51% | 5.19% | 5.63% | The comfy slippers. Return significantly boosted by referrals | | Loanpad ISA | 4.86% | NA | 4.86%* | New, boosted rate from referrals | | Moneything | 0.53% | 1.75% | 1.36% | Still scraping a return, just 1 performing loan left. Exiting with a profit despite admin. | | Octopus Choice | NA | 11.54% | 12.7% | Done & dusted. | | Onstep | 2.57% | 3.24% | 3.01% | Another eventually to be ex-platform. | | Property Partner | 1.25% | -1.46% | -0.59% | Just letting it run its course, has managed to scrape into positive returns but doubt that will be for long as PP likely to chop dividends. Strip out capital gains/losses Q2 return 3.51% | | Unbolted | 8.99% | 9.25% | 9.08% | Mr Steady, just ticks along doing its thing. Slight drop in return with rate cut. | | Uown | 0.05% | 8.01% | 5.28% | Lack of opportunities and significant cash drag plus interest at term mean figures distorted. |
I have residual loans on Funding Secure (effectively out with a profit), Lendy (likely to be a modest loss), Collateral (who knows but it will be painful), and Funding Circle (long exited but pennies from residual defaults) NB - platforms Im not in is generally due to too high minimum for diversification or inability to pass AML/KYC checks. |
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benaj
Member of DD Central
N/A
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Post by benaj on Oct 6, 2022 14:12:19 GMT
After years of p2p, I wish there is a report for platform liquidity.
To the best of my knowledge, LP and EM are still good enough to provide liquidity after years of operation.
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aju
Member of DD Central
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Post by aju on Oct 7, 2022 10:21:57 GMT
Latest 3 month performance update ... <Snipped> Nice breakdown of your investments thanks, I wish mine were as lucrative ...  I'm probably showing my ignorance (or worse incompetence) but what do you mean in your table when you say "MLA", I'm guessing this might be another term for a platform but I'm not sure as there were a number of options when i googled the term. Apologies if this is a stupid question
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benaj
Member of DD Central
N/A
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Post by benaj on Oct 7, 2022 11:35:07 GMT
aju, I only see improved performance from Z. My zopa plus xirr never exceeed 1% after selling early and yet their saver pot gives me more interest.
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Post by Ace on Oct 7, 2022 11:41:40 GMT
Latest 3 month performance update ... <Snipped> Nice breakdown of your investments thanks, I wish mine were as lucrative ... I'm probably showing my ignorance (or worse incompetence) but what do you mean in your table when you say "MLA", I'm guessing this might be another term for a platform but I'm not sure as there were a number of options when i googled the term. Apologies if this is a stupid question MLA refers to Assetz Capital's Manual Lending Account.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Likes: 11,523
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Post by ilmoro on Oct 7, 2022 13:29:27 GMT
Latest 3 month performance update ... <Snipped> Nice breakdown of your investments thanks, I wish mine were as lucrative ... I'm probably showing my ignorance (or worse incompetence) but what do you mean in your table when you say "MLA", I'm guessing this might be another term for a platform but I'm not sure as there were a number of options when i googled the term. Apologies if this is a stupid question As ace said the self select element of AC platform, I also have/had money in the auto invest access accounts so the overall performance is a blended rate & inevitably lower as a result.
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Post by df on Oct 7, 2022 18:13:07 GMT
Latest 3 month performance update ... |
| | | | | Platform | Q2 2022-3 | 2021-22 XIRR | 18m XIRR | Comments | Ablrate
| 2.58% | 5.39%
| 4.54% | Winddown, majority of loans non-paying | | Assetz Capital standard | 5.94% | 6.61% | 6.38% | Have moved to full MLA now, so XIRR will increase. MLA only return 6.25%. Topped up a bit to take advantage of new opps. | | Assetz Capital ISA | 4.46% | 4.20% | 4.28% | Mainly Access accounts, rebalancing towards MLA, MLA only return 11.25% due to accrued interest payments. Static investment level | | Assetz Exchange | 2.35% | 15.09% | 9.04% | Holding at current level and rediversifying as new loans launch and taking capital gains. Quite volatile market currently. Stripped out Q2 return, incl realised capital gains, is 6.85% | | Brickowner | 3.42% | 2.09% | 2.53% | In limbo as unable to verify. Profits mostly due at term and somewhat delayed in some cases. | | Crowdstacker | 0.3% | NA | 0.3%* | New for Q2, interest at term, cash drag, pulled loans mean no real comparable figures | | Easymoney | 3.04% | 2.21% | 2.72% | Minimum investment to get perks as rates too low for more. Factor in savings from perks and rate a healthier 6% | | Elfin Market | 6.56% | 6.49% | 6.52% | Steady performer. Slight increase due to moving to 1 year loans. Small top up | | Fund Ourselves | 17.2% | 12.27% | 13.85% | Best performer on paper but not sure if Ill ever see it. Appalling website & service making it uninvestable. Accrued interest distorts returns. Drop in return as hasnt paid out PF interest for several months again | | Landlordinvest ISA | 21.35% | 6.68% | 10.19% | Resolution of default inflating return. Exit on hold due to better SM availability allowing diversification. Solid platform | | Leap Lending | 0.87% | 1.6% | 1.31% | Baffling ... totally impossible to invest | | Lendwise | 8.05% | -8.12% | 7.65% | Ticking along, have added another toe (New in 21/22 & purchase of accrued interest makes negative return) | | Loanpad standard | 6.51% | 5.19% | 5.63% | The comfy slippers. Return significantly boosted by referrals | | Loanpad ISA | 4.86% | NA | 4.86%* | New, boosted rate from referrals | | Moneything | 0.53% | 1.75% | 1.36% | Still scraping a return, just 1 performing loan left. Exiting with a profit despite admin. | | Octopus Choice | NA | 11.54% | 12.7% | Done & dusted. | | Onstep | 2.57% | 3.24% | 3.01% | Another eventually to be ex-platform. | | Property Partner | 1.25% | -1.46% | -0.59% | Just letting it run its course, has managed to scrape into positive returns but doubt that will be for long as PP likely to chop dividends. Strip out capital gains/losses Q2 return 3.51% | | Unbolted | 8.99% | 9.25% | 9.08% | Mr Steady, just ticks along doing its thing. Slight drop in return with rate cut. | | Uown | 0.05% | 8.01% | 5.28% | Lack of opportunities and significant cash drag plus interest at term mean figures distorted. |
I have residual loans on Funding Secure (effectively out with a profit), Lendy (likely to be a modest loss), Collateral (who knows but it will be painful), and Funding Circle (long exited but pennies from residual defaults) NB - platforms Im not in is generally due to too high minimum for diversification or inability to pass AML/KYC checks. Great performance from FO . I'm amaised it's still going. I've ended up with XIRR 10.3%, which came as a surprise (I thought it was going to be a big loss). The most mysterious platform I've ever came across.
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Post by Ace on Oct 8, 2022 21:25:49 GMT
Hi all, here's my quarterly update. I'll concentrate on updating my desired platform allocation that I originally posted at this time last year (See here). I'll add some notes on why some of my desired allocations have changed in the table. Most of the changes have been forced by circumstances. Firstly the headline figure for my overall portfolio: the all-time P2P XIRR has fallen since the last quarter from 7.64% to 7.41. There are two main reasons for this: - The income from my largest platform (ABLrate) has fallen off a cliff. As you will know, Ablrate is now in winddown. My ABLrate XIRR has fallen from a high point of around 13% to 9.9% currently, hence the downward pressure on my platform XIRR. The recent repayment of the PeaOne loans and a few others for me has reduced my exposure to ABLrate from a high of about 19% of my portfolio to the current 13.75%. It's still my largest platform. This should reduce further next week when a few more minor repayments are due for me, but it looks like being a long slog into administration from there. Let's hope some more major repayments are made before that occurs. I have no idea what portion of remaining capital will eventually be repaid. The total profit from my ABLrate loans currently represents 33.3% of my outstanding capital. It looks like the result may hinge on the strength of AF's PG!
- The relatively recent addition of larger loans on Shojin, CapitalStackers and CPCapital are still acting as a drag on overall performance because none of them have matured yet (and I only register paid profit, so the accrued profit doesn't contribute to the figures). I've also recently invested in a few CrowdStacker PDL loans that also don't pay any returns until maturity.
I'm due a sizable profit from a loan on AxiaFunder as a case has recently settled, but the details of how much didn't come through in time. So that should help give a boost to next quarter's results.
There were no additions or deletions of platforms from my portfolio this quarter. My total P2P pot has remained fairly stable (it's actually risen slightly) as I've been using some of the profits for living expenses.
Now for an update to my ideal mix of P2P platforms, and the estimate of what overall return that might produce. Two platforms have been removed (ABLrate as it's now in winddown, and ConnectiveLending as they have closed). I've added CapitalStackers, BlendNetwork, CrowdStacker, CPCapital and ElfinMarket. Other adjustments have been made. A major driver has been a tilt towards ISAs. The "Target %" column gives the desired percentage of my P2P portfolio that I would now like to have invested in that platform. The "Change" column shows the increase or decrease in desired percentage from last year. The "Current XIRR" column states the all-time XIRR that I've achieved across all my accounts on that platform to date (i.e. combined Standard and ISA accounts). The "Target XIRR" column indicates my best estimate of what return I could achieve on that platform (some of these are very difficult to estimate, and may change over time). The order of platforms isn't relevant. It's actually the order of my current exposure to each platform from high to low. | Platform | Target % | Change | Current XIRR | Target XIRR | Notes |
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| ABLrate | 0 | -16 | 9.9% |  | See comments above. | | CrowdProperty | 11 | -3 | 4.7% | 7.5% | Solid performer. Running down Standard in favour of ISA. | AxiaFunder
| 12 | +2 | 2.3% | 20% | Increased due to relative safety of portfolio cases. | HNW Lending
| 7 | +2 | 7.2% | 8% | Increased due to higher rates. | | Shojin | 12 | +2 | 5.8% | 15% | Increased as more loans offer greater diversification. | | Qardus | 10 | 0 | 19.1% | 15% | Continues to be a star performer, but difficult to keep deployed due to amortisation. | Loanpad
| 7 | 0 | 5.9% | 4.6% | Holding steady. A very solid base. | Proplend
| 7 | 0 | 10.1% | 8% | Would put more here if I could. | | Unbolted | 5 | +1 | 9.2% | 8% | Increased as I managed to get more deployed. Another solid performer. | Brickowner
| 3 | 0 | 0.2% | 8% | Holding off further investment until they get some of their very late loans over the line. | | CapitalStackers | 7 | new | 0% | 11% | Impressed with level of DD. | | BlendNetwork | 4 | new | 0.9% | 8% | I'm back as it's now much easier to get deployed. | Landlordinvest
| 4 | +1 | 11.5% | 9% | Another solid performer. | | CrowdStacker | 2 | new | 3.8% | 8.5% | Pivoted to mezzanine funding of development loans. | Kuflink
| 3 | 0 | 14.6% | 7% | Another solid performer, will add to ISA. Rate is very inflated by historic referral bonuses. | | CPCapital | 3 | new | 0% | 11% | Crowd Property's mezzanine platform. High hopes, but too few loans so far. | CapitalRise
| 2 | -2 | 7.8% | 7.5% | Reduced due to falling rates, but a solid performer. | | Elfin Market | 1 | new | 8.1% | 7% | Been solid for 20 months now and rates have risen, so added as a desired platform. | Connective Lending
| 0 | -4 | 13.4% |
| Closed and sorely missed. |
The capital weighted average using my Current XIRRs is 6.75% (down from 8.4 last year due to factors noted above). The capital weighted average using my Target XIRRs would be 11% (same as last year, but with more diversification). I'd be a very happy bunny if I got anywhere near this. ABLrate could scupper this ambition for a very long time if it goes badly. A main driver to the Target % is the likely ability to achieve the desired exposure at my required level of diversification. There are certainly platforms that I would have favoured more if I thought that I would be able to deploy more funds there. I've tried to allow for defaults where I think some are likely. There are good arguments for adding other platforms that I quite like to the above list, but I'm trying (and failing) to reduce the number of platforms, and I'm trying to increase overall returns without making myself uncomfortable with the risk. A few notable missing platforms are: Assetz Capital - I decided to exit this platform a while back when rates were too low (among other documented factors). A case could be made for bringing it back to share the load of the lower paying (hopefully safer) platforms, but I've got too many platforms again now and I prefer the ones I have. Assetz Exchange - I feel that loans here have become overpriced, so I'm withdrawing income and repayments. SoMo - I did bring this platform back as the rates lifted, but my last loan has repaid. I might bring it back again if I see a loan I like when I have spare cash. Uown - Too few loans. I still have investments here. OnStep - Too few loans. I'm still in their only loan. One of the problems with my chosen platforms is still an over-reliance on property based Lending (even more so than last year due to ABL and CL being removed), so a large property crash could put me in difficulties. The percentages invested in the various sectors would be: Property 72% Business (SMEs) 10% Litigation funding 12% Pawn 5% Consumer Lending 1% |
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p2pfan
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Post by p2pfan on Oct 8, 2022 22:35:34 GMT
A fascinating read Ace . Thank you for putting together the comprehensive information and sharing it with us. I share your concern about most of Ablrate's outstanding non-PeaOne loans. I'm also invested with them quite heavily and, should the AF and ACI loans, as well as others which are defaulting monthly interest payments one after another, not repay, it could prove to be a massive hit to many of us. This is always the risk with P2P lending, as capital losses weigh very heavily and it takes an extremely long time of returns of, say, 4-12% elsewhere to counter such capital losses. You mention an overdependence on property loans. However, do you not see a bigger risk in the forthcoming recession of being loans to SMEs, as Qardas and Assetz Capital specialise in? I'm curious (not questioning) your faith in Qardas: on what basis do you see their loans to small businesses as not going the way of those of many Ablrate and Assetz Capital ones? I'm wondering what reasons you have had to not to invest with SoMo? Do you see them as being substantially higher risk, for instance? Their interest rates are much more than many of your existing platforms. |
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