spiral
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Post by spiral on Mar 2, 2015 12:43:03 GMT
I have always only invested in the 5 yr markets and as such had not taken much interest in the other markets until recent rate spikes prompted me to take a foray into these other markets.
The problem is that as I don't actively seek to invest in these markets, I only ever make that plunge if I happen to notice a favourable rate when logging in (or someone lets the cat out of the bag on here).
I wondered therefore if there is some reason that RS don't provide the option to have your offer in all markets simultaneously matching whichever comes along first.
So instead of placing my £100 offer in the 5yr market at 6.5% as per current practice, I place it at 6.5% in 5yr, 5.5% in 3 yr, 4.5% in 1 yr and 3.5% in monthly market.
This would provide back up liquidity in markets that may otherwise run dry.
A couple of weeks back for example, the 3yr market rate (6.4) rose above the 5yr market rate (6.3).
That almost certainly would not have occurred if this option existed.
Obviously the markets would appear to have more liquidity than is real because my £100 would appear as £400 in the market volumes whereas in practice, only one of the markets can ever match.
I know that at Zopa there is a lot of talk about why they don't let you invest in both of their markets simultaneously and no one seems to have a good answer. At least at RS you can although in my example, I'd have to split my £100 four ways.
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pip
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Post by pip on Mar 2, 2015 13:34:26 GMT
Personally I cannot see the appeal of this idea. The 5 year and the 1 month markets have completely different purposes for me, i.e. 5 year long term savings and 1 month where I know I will have a short term requirement for the money.
For example at the moment I am putting all reinvestment into the 1 month as I am trying to build that up to my ISA allowance for next year.
I personally don't touch the 1 year or 3 year as due to the way the cashout works, I think I will be better off sticking all longer than one month savings in the 5 year and only if necessary sell out some of these.
I can't see how your product would help anybody, I can see times when you may be in two minds about which product to choose, but I don't think this choice should be decided by where Ratesetter has the market rate matched first.
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Post by GSV3MIaC on Mar 2, 2015 15:20:20 GMT
Well it appeals to me .. I am quite happy to invest in 3 or 5 year (but I expect a rate premium for 5 year .. no I shall not reveal what that premium is. 8>.) and I'm happy to park money in 1 month if the 3 or 5 year are both in the doldrums at the time. One year is, afaiac, a dead duck. Of course if there was an suitable API, I'd be quite happy to have one of my auxiliary brains move the money between markets automagically, but RS would probably prefer the program to run on their own server(s).
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spiral
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Post by spiral on Aug 2, 2015 6:43:12 GMT
With recent 3yr volatility and 5yr market still suffering from post CB depression, I have set my reinvestment money for 3yr temporarily. ATM I am not pulling the plug on my 5 yr money that has been queuing for several weeks but it reminded me of this thread that I started earlier this year and got me thinking once again, why is this not offered as an option?
I wouldn't now be changing my settings and my previous money would still be ahead (if not matched already) in the queue of tomorrows money.
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jo
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Post by jo on Aug 2, 2015 16:38:01 GMT
I'm guessing it would screw-up the validity of the lenders' on-offer numbers as reported by RS per market.
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Post by contangoandcash on Aug 3, 2015 8:59:59 GMT
This definitely appeals to me. Eg recently the monthly was higher than the 1 year, also last week the 3 year > 5 year. I'd like to be able to set my own curve, and to 'lift' borrowing requests at the right price... rare as they are at these prices. An API would be great..
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Post by nickthefool on Aug 3, 2015 9:10:09 GMT
Seems like a good suggestion to me.
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sl75
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Post by sl75 on Aug 3, 2015 14:07:27 GMT
At the very least, it would seem sensible to have the funds on offer for "longer-term" markets to be matched by demand from "shorter-term" borrowers.
i.e. :
- if there's strong demand for "monthly" loans, the funds on offer for all markets would be available as backup to the funds explicitly offered for only 1 month.
- if there's strong demand for 3 year loans, the funds on offer for the 5 year market would be available as backup.
Similarly, if someone made an unusually low offer on the 5 year market, with no unfulfilled borrower demand on THAT market, it could be instantly matched against unfulfilled borrower demand on the 3 year market.
Even without doing so explicitly, lenders will already get loans of shorter terms than expected due to the operation of the sell-out feature, and the opportunity for borrowers to repay early.
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Post by closetotheedge on Aug 7, 2015 9:24:04 GMT
Being able to offer on both the 3 and 5 year markets would work well at present since it seems that both offer 6% regularly but the 3 year queue moves faster.
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Post by westonkevRS on Aug 7, 2015 13:05:30 GMT
Being able to offer on both the 3 and 5 year markets would work well at present since it seems that both offer 6% regularly but the 3 year queue moves faster. But what option should be available if you wanted the 6% on the 5-yr, and not on the 3-yr? Let's say you think the rates might drop in the next year due to ISA money or institutional money.... You might want to lock in the 6% for as long as possible. The truth is you can never please everyone without complicated options! @ westonkevRS
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adrianc
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Post by adrianc on Aug 7, 2015 13:19:19 GMT
Being able to offer on both the 3 and 5 year markets would work well at present since it seems that both offer 6% regularly but the 3 year queue moves faster. But what option should be available if you wanted the 6% on the 5-yr, and not on the 3-yr? Let's say you think the rates might drop in the next year due to ISA money or institutional money.... You might want to lock in the 6% for as long as possible. The truth is you can never please everyone without complicated options! I'm not sure how complicated it needs to be. Something along the line of I want to put this £50 on at 6.2%/5yr or 5.8%/3yr or 3.5%/1mo, whichever comes first.
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Post by nickthefool on Aug 7, 2015 13:26:51 GMT
But what option should be available if you wanted the 6% on the 5-yr, and not on the 3-yr? Let's say you think the rates might drop in the next year due to ISA money or institutional money.... You might want to lock in the 6% for as long as possible. The truth is you can never please everyone without complicated options! I'm not sure how complicated it needs to be. Something along the line of I want to put this £50 on at 6.2%/5yr or 5.8%/3yr or 3.5%/1mo, whichever comes first. Checkboxes for which markets you want to lend in, and at what rate. If you don't want to lend in 3 yr market then you only choose 5 yr. Simples. Or if, similar to your scenario, you think rates will drop by 1% soon so want to tie your money up for as long as possible, maybe set 5 yr at 6% and 3 yr at 7%.
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jo
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Post by jo on Aug 7, 2015 16:03:03 GMT
Haven't seen my earlier comment addressed, how would this impact visibility of funds on offer per market (which I like)?
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adrianc
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Post by adrianc on Aug 7, 2015 16:11:42 GMT
Haven't seen my earlier comment addressed, how would this impact visibility of funds on offer per market (which I like)? No reason that money on offer to that market wouldn't be shown as being on offer to that market - even if it's on offer to other markets, too. After all, there's still <say> £150k between the front of that particular queue and your money. Sure, some of that £150k may disappear - but it may currently, too, if somebody changes or cancels their order. All that'll happen is the queue moves faster.
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jo
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Post by jo on Aug 7, 2015 16:32:59 GMT
Haven't seen my earlier comment addressed, how would this impact visibility of funds on offer per market (which I like)? No reason that money on offer to that market wouldn't be shown as being on offer to that market - even if it's on offer to other markets, too. After all, there's still <say> £150k between the front of that particular queue and your money. Sure, some of that £150k may disappear - but it may currently, too, if somebody changes or cancels their order. All that'll happen is the queue moves faster. Thanks. I will cogitate on this.
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