Performance report for 2021 (and quarterly updates in 2022)
Oct 8, 2022 23:18:45 GMT
p2pfan and overthehill like this
Post by Ace on Oct 8, 2022 23:18:45 GMT
Good questions. See my inline answers in blue:
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.
Can't argue with that. I think that I was too gung-ho in putting 19% of my pot in one high risk platform. I'm going to try and limit higher risk platforms to no more than 12% in future.
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?
Yes, I do think that the SME loans can be higher risk, but Qardus will be my only SME platform going forwards. I've been withdrawing from AC for quite a while.
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?
Yes, it's certainly possible that they could. However, a few mitigating factors for me are:
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.
I moved away from them when I perceived that their rates had dropped too low, but I would gladly return now that they are back up again. My problem is that I've taken on too many platforms with high minimums to be able to get sufficient diversification with another. The lack of an ISA is also an issue for me. I see them as a solid platform that I'd be happy to use again if funds and circumstances allowed.
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.
Can't argue with that. I think that I was too gung-ho in putting 19% of my pot in one high risk platform. I'm going to try and limit higher risk platforms to no more than 12% in future.
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?
Yes, I do think that the SME loans can be higher risk, but Qardus will be my only SME platform going forwards. I've been withdrawing from AC for quite a while.
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?
Yes, it's certainly possible that they could. However, a few mitigating factors for me are:
- It's my sole SME platform and will only represent up to 10% of my portfolio.
- It currently represents only 7% of my portfolio. I have 14 extant loans, so each only represents 0.5% of portfolio on average (max is 1.2%).
- Their trust has been earned over 2 years.
- All of the loans are straight line amortising, so exposure to each quickly diminishes.
- I go larger for repeating borrowers that are proven payers (the irony with ablrate is not lost on me here).
- My total profits on this platform now far outweigh any commitment I make to a new loan (and could more than cover my 6 most amortised loans).
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.
I moved away from them when I perceived that their rates had dropped too low, but I would gladly return now that they are back up again. My problem is that I've taken on too many platforms with high minimums to be able to get sufficient diversification with another. The lack of an ISA is also an issue for me. I see them as a solid platform that I'd be happy to use again if funds and circumstances allowed.
