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Post by pepperpot on Feb 4, 2015 16:58:55 GMT
ted)
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Steerpike
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Post by Steerpike on Feb 4, 2015 17:09:09 GMT
You're darn right big investors will be waiting to pounce! Kapooowww....and it's all gone, and even the subsequent SM liquidity may only offer up more of the same loans that a smaller investor may already be holding, and would be uncomfortable with any increase in exposure. Just a suggestion, and it would vary for loan size, but could the first hour of a new loan be limited to say up to £200 per investor, until a maximum of 20% of the loan value is filled? After the first hour, the remaining 80% + any of the first 20% not taken up would be a bun fight for all, including the larger investors, and also those who had already made a £200 bid in the first hour? eg £500,000 loan, for the first hour £100,000 available to small bids, would give 500 investors @ £200 the chance to get on board, it would probably be more I suspect. There would still be £400,000 available after the first hour for the big boys. Anyway just a thought, I suspect the programming to achieve this could be an issue! Btw, I'm not choosing figures to suit my own bid level, I'd probably be going for £1,000+ myself, but just think it is reasonable and fair to all. Ultimately, more deals needed though, as already pointed out! The £3m loan in the pipeline may soak up some of the cash from new investors. Alternatively, perhaps a default or two would dampen off demand...
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will
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Post by will on Feb 4, 2015 19:42:14 GMT
Eeeeeek. Please don't even think about defaults ......
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Post by yorkshireman on Feb 4, 2015 19:54:19 GMT
• Everyone gets a weekly notification email on the deals that are likely to be activated in the coming week and a mobile txt and email notification when a new loan is activated. So, if one has funds waiting for being invested, then s/he could simply pay more attention to mobile and email notifications. The weekly notification email is best taken with a pinch of salt with regards to what might or might not go live and some people are too busy to spend their lives glued to mobiles and emails.
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sqh
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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 Feb 4, 2015 20:24:53 GMT
Why not a text an hour or two before the loan is released? Good idea, but I wonder if the system can cope with everyone logging in at once. Recently, I've noticed that new loans have been launched several minutes before the email notification. By the time the email arrives a pre-feeding-frenzy as commenced. PS If you can say pre-feeding-frenzy quickly 10 times, you've probably missed the next auction.
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paulg
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Post by paulg on Feb 4, 2015 20:29:27 GMT
Before we call for any system of capping or notification that might result in hundreds of investors trying to access the SavingStream applications / servers at the same instant it would be good to consider the possible consequences on their IT infrastructure. Given the odd hiccup that occurs now when two people try to buy the same loan part, it would be unfortunate to say the least if we brought their applications down in the first minute of a new loan going live.  |
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mikes1531
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Post by mikes1531 on Feb 5, 2015 3:50:28 GMT
ISTM that one way around this might be to allocate a certain portion of any new loan to bids of some amount or less, and allow larger bids for the remainder. I'll admit I haven't given this idea a lot of thought, but maybe £50-100k would be reserved for bids of up to maybe £1k, and the remainder open to bids of any size. The numbers obviously would be changeable from loan to loan, and adjusted as experience is gained. The objective might be to set the 'small-bid' portion size and bid limit such that the loan would be available for 12-24 hours. It's one of those situations where you just can't please all of the people all of the time, but your suggestion seems to go a long way towards that. It all depends on the relative numbers of people at each investment level. It would be very difficult keeping the medium sized investors happy - I can imagine them feeling still squeezed out by the big guys, but with whatever the limit was too small to be useful to them - a new variant on the 'sqeezed middle'. If it were easy to try out, then it could be a reasonable compromise though. After a bit more thought, I concluded it would be very easy to try out. Taking the recent PBL024 as an example... Create two new loans needing funding instead of one. PBL024a for £500k with no limits on investors, and PBL024b for £122k with a bid limit of, say, £1k. The a/b split could be whatever SS thought was appropriate, and the 'b' loan bid limit similarly could be adjusted as felt necessary. Then see how it goes and make further changes when the next loan is ready to be funded.
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star dust
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Post by star dust on Feb 5, 2015 7:00:14 GMT
After a bit more thought, I concluded it would be very easy to try out. Taking the recent PBL024 as an example... Create two new loans needing funding instead of one. PBL024a for £500k with no limits on investors, and PBL024b for £122k with a bid limit of, say, £1k. The a/b split could be whatever SS thought was appropriate, and the 'b' loan bid limit similarly could be adjusted as felt necessary. Then see how it goes and make further changes when the next loan is ready to be funded. Actually I think splitting the loan into two separate ones might not be legally viable, see a post by SS when this was mooted for another reason link. However, I don't see why this couldn't be tried by releasing it in two stages with and without bid limits, I still think you should be restricted to only fishing in one pool though or it could be self-defeating.
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paulg
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Post by paulg on Feb 5, 2015 9:14:00 GMT
After a bit more thought, I concluded it would be very easy to try out. Taking the recent PBL024 as an example... Create two new loans needing funding instead of one. PBL024a for £500k with no limits on investors, and PBL024b for £122k with a bid limit of, say, £1k. The a/b split could be whatever SS thought was appropriate, and the 'b' loan bid limit similarly could be adjusted as felt necessary. Then see how it goes and make further changes when the next loan is ready to be funded. Actually I think splitting the loan into two separate ones might not be legally viable, see a post by SS when this was mooted for another reason link. However, I don't see why this couldn't be tried by releasing it in two stages with and without bid limits, I still think you should be restricted to only fishing in one pool though or it could be self-defeating. PBL024 sold out in 4 hrs 10 mins. I watched it going down and there were a LOT of small parts bought. Even if splitting the loan this way was legally viable I don't think adopting this system would have made any difference.
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Liz
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Post by Liz on Feb 5, 2015 12:05:41 GMT
Now funds are flowing into the site I think SS will be trying to do more deals to keep us all happy.
Will that £3m loan fill in days? Or another PBL5. I had several bites at that loan.
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star dust
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Post by star dust on Feb 5, 2015 19:00:11 GMT
Actually I think splitting the loan into two separate ones might not be legally viable, see a post by SS when this was mooted for another reason link. However, I don't see why this couldn't be tried by releasing it in two stages with and without bid limits, I still think you should be restricted to only fishing in one pool though or it could be self-defeating. PBL024 sold out in 4 hrs 10 mins. I watched it going down and there were a LOT of small parts bought. Even if splitting the loan this way was legally viable I don't think adopting this system would have made any difference. I don't disagree, as mentioned in my earlier posts I'm not convinced that a capping system is necessary. However if one were adopted then it might be one way forward. it would be interesting to get some insight into savingstream current views (or not) on this as they will have a better grasp of the actual (as opposed to perceived) situation.
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mikes1531
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Post by mikes1531 on Feb 6, 2015 3:01:38 GMT
Actually I think splitting the loan into two separate ones might not be legally viable, see a post by SS when this was mooted for another reason link. However, I don't see why this couldn't be tried by releasing it in two stages with and without bid limits, I still think you should be restricted to only fishing in one pool though or it could be self-defeating. Reading the linked message, there was no suggestion of legal issues. The reason given was that SS thought it would be confusing... We have decided to keep the loan as a single tranche (as it would have introduced confusion with varying loan sizes, security and LTV). If explained well enough, it shouldn't be a problem. I know of two platforms (AC & FS) where a loans have been divided into multiple tranches with all tranches being based on the same security and being of equal ranking -- i.e. not being a first charge and a second charge, etc., etc. I have no problem with investors being restricted to one pool, but I don't see that the lack of such a restriction would cause a problem if the loan is divided into the two pools with the knowledge that there is no restriction. Take my earlier example of a £622k loan divided into £500k with no limits, and £122k with a bid limit of £1k. If that was appropriate for a 'fishing in one pool only' case, then changing the split to £472k with no limits, and £150k with a bid limit of £1k, would allow for 28 'big' bidders to fish in the limited pool without affecting the 'small' bidders. Again, it would be a case of try it, see how it works, and then make adjustments the next time. A bit of experience should be enough to get the balance right for future loans. PBL024 sold out in 4 hrs 10 mins. I watched it going down and there were a LOT of small parts bought. Even if splitting the loan this way was legally viable I don't think adopting this system would have made any difference. I suppose it all depends on what any adjustments are trying to accomplish. I agree that a loan that's available for four hours is better than one that becomes fully funded in a few minutes. But is four hours long enough? What about people who don't have interent access while they're at work? Should they be excluded from investing via SS? IMHO, SS should be aiming for loans to be available to as wide an audience as possible. One way would be if something could be done with respect to bidding limits that would result in loans being open for funding for at least 12-24 hours. Perhaps another possibility would be to allow lenders to place small bids in advance of a loan's official opening. By the time a loan opened for general bidding a certain portion would have been taken up by those small bids and then the feeding frenzy by the big fish could start.
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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 6, 2015 9:26:15 GMT
I'm just going to throw in a plea here, in case SS are intending to try one/some of the suggestions being thrown up at the moment. Whatever you do, PLEASE retain the simplicity.
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Post by duncandive on Feb 6, 2015 9:41:57 GMT
I'm just going to throw in a plea here, in case SS are intending to try one/some of the suggestions being thrown up at the moment. Whatever you do, PLEASE retain the simplicity. Seconded PLEASE... I Like Simple too 
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oldgrumpy
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Post by oldgrumpy on Feb 6, 2015 9:54:07 GMT
I'm just going to throw in a plea here, in case SS are intending to try one/some of the suggestions being thrown up at the moment. Whatever you do, PLEASE retain the simplicity. Seconded PLEASE... I Like Simple too AH! SIMPLES. 
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