Liz
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Post by Liz on Jan 23, 2015 17:03:44 GMT
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Post by duncandive on Jan 23, 2015 17:05:27 GMT
Great News to end the week with  |
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Post by Deleted on Jan 23, 2015 17:13:11 GMT
Very pleased.
And very good that SS do listen to the views and concerns of investors and act on them.
Thanks to the team at SS for this.
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Liz
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Post by Liz on Feb 9, 2015 18:01:49 GMT
Do they have a link to the provision fund from their main page? Or do I have to use my link(if I can find it in several months)
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Feb 9, 2015 18:08:02 GMT
Do they have a link to the provision fund from their main page? Or do I have to use my link(if I can find it in several months) In your Account drop down menu the Provision Fund is the bottom menu item from a computer - I don't know if that is different on a phone.
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Post by solicitorious on Feb 25, 2015 14:44:39 GMT
I notice the PF has gone up by £60k to £346,580. I do a little calculation now to include the PF in my lending decisions. Call it the Recovery Rate (of the security) required to cover my investment on a particular loan. RR = (Loan-PF)/(Loan/LTV). Can be negative, meaning no recovery is required to cover my investment. This is on the smaller value loans. e.g. PBL007, RR = (168-346.580)/(168/.646) = -0.687, so this loan would require zero recovery for the PF to cover my loss. at the other end of the scale... PBL020, RR = (1700-346.580)/(1700/0.7) = 55.73% recovery required. Of course this calculation assumes just one loss.  Would appreciate others' thoughts on the utility of this calculation... |
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mikes1531
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Post by mikes1531 on Feb 25, 2015 16:10:14 GMT
Would appreciate others' thoughts on the utility of this calculation... I think it's a useful measure of coverage, though as noted it works only if there's a single failure. SS show a similar 'Stress Test' calculation at the bottom of their Provision Fund page, but they don't seem to be updating it whenever the other numbers on that page change.
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Post by savingstream on Feb 25, 2015 18:21:04 GMT
The Stress Test figures do not change relevant to the Provision Fund size.
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Investor
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Post by Investor on Feb 25, 2015 19:32:12 GMT
The Stress Test figures do not change relevant to the Provision Fund size. However the stress test figures are based on the 'largest current loan' so I would assume that when PBL025 draws down savingstream will adjust the figures. 
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mikes1531
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Post by mikes1531 on Feb 25, 2015 19:52:02 GMT
The Stress Test figures do not change relevant to the Provision Fund size. However the stress test figures are based on the 'largest current loan' so I would assume that when PBL025 draws down savingstream will adjust the figures. : ISTM that all the Stress Test numbers should change. As pointed out by Investor, the percentages "the property is required to fetch" "Without Provision Fund" should depend on the size of the largest current loan. And, furthermore, those labelled "With Provision Fund" depend both on the size of the largest current loan and on the size of the Provision Fund. But perhaps I'm misunderstanding something, so could you please explain exactly how the displayed percentages are calculated?
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mikes1531
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Post by mikes1531 on Mar 5, 2015 18:26:46 GMT
savingstream: ISTM that all the Stress Test numbers should change. As pointed out by Investor, the percentages "the property is required to fetch" "Without Provision Fund" should depend on the size of the largest current loan. And, furthermore, those labelled "With Provision Fund" depend both on the size of the largest current loan and on the size of the Provision Fund. But perhaps I'm misunderstanding something, so could you please explain exactly how the displayed percentages are calculated? : Can you please respond to the issue/question I raised last week? AIUI, the Stress Test results published on the SS website are now in error and need updating.
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Liz
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Post by Liz on Mar 22, 2015 11:01:55 GMT
Up to £400k, exactly 2% of loan book.
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webwiz
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Post by webwiz on Mar 22, 2015 16:46:51 GMT
If there is a default and a subsequent loss of more than is in the PF would SS really use up all the PF on this one loan? Remember they have total discretion on this point.
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mikes1531
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Post by mikes1531 on Mar 23, 2015 18:09:30 GMT
If there is a default and a subsequent loss of more than is in the PF would SS really use up all the PF on this one loan? Remember they have total discretion on this point. It all depends on how much they value being able to say that none of their investors have ever lost any money. That has to be an extremely powerful marketing tool, so I'd think they'd want to keep their perfect record, even if it meant digging into their own reserves to achieve that. Hopefully the situation won't ever arise, so they won't be forced to make that decision.
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Post by psmills on Mar 23, 2015 19:33:05 GMT
I realise I'm new here but the way I see the provision fund working is that it is there to cover any shortfall in the valution of the security should it have to be sold to cover the debt am I right? my question is is how is the provision fund funded and is it protected from market fluctuations? also would it not be more prudent to have a larger provision fund?
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