sl75
Posts: 2,092 
Likes: 1,245
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Post by sl75 on Jan 26, 2015 18:40:18 GMT
Perhaps, but the huge increase in market activity is exactly what would be good about dropping the fee as it would improve liquidity for all participants. Perhaps. There are other gains that I'd anticipate would be more advantageous for typical (non-automated) buyers and sellers, specifically: - mechanisms for sellers to achieve a quick sale without "giving too much away" or having to carefully research the market price of each individual loan part (a dutch auction can of course be done manually) - mechanisms to allow a "buy order" to be left in the marketplace in cases where the most attractively priced loan parts are not to a buyer's liking. - mechanisms to allow buyers seeking a small exposure to split off a small chunk of a large loan part. - mechanisms to allow buyers seeking a large exposure to coalesce multiple pieces of "shrapnel" into a single loan part that's worth their while tracking. The main "winners" from a change in market structure that facilitates high-frequency trading without the other improvements would be the bot operators. General liquidity already seems quite adequate (at the unpublished market price that achieves a quick sale, not necessarily at a price you are willing to trade!).
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Post by GSV3MIaC on Jan 26, 2015 21:11:33 GMT
The 0.25% is not a big disincentive to the average bot operator anyway, mostly they seem to be achieving 2% type markups, so they are only losing a small fraction, except where they get caught out and have to bail out at par .. Even then the interest probably covers the fee. Maybe FC should adopt an official underwriting position, instead of bots/flippers taking on that role. Might keep the bidding activity a bit saner too.
I did wonder if the whole loans thing was a step n that direction, but apparently not.
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fasty
Member of DD Central
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Likes: 388
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Post by fasty on Jan 27, 2015 19:17:37 GMT
Well, the floodgates opened today and there are now 130 loans in the marketplace at the time of writing. Hopefully that might perk rates up a bit for investors. I'm not so impressed with the property loan at 8% over 22 months with only 0.5% cashback though. They'll have to try harder than that to make me nibble.
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Post by Deleted on Feb 2, 2015 13:18:06 GMT
I see the property loans are trying to bleed the cashbacks to 0.5% for a 8% 14 month loan. I also saw one of these withdrawn in the last few days, I guess due to lack of interest.
All to tight for me, needs to be 1% cashback, less than 15 months to get 8%.
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Post by Deleted on Feb 3, 2015 9:20:56 GMT
Bah, another morning of people driving down the rates  |
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