ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 5, 2015 10:47:27 GMT
A difference you will notice between Frantic Corpuscles and Furry Knickers is their communication and management of defaults/late payments. Fulsome Knick-Knacks are much better, IMHO, in keeping you updated and following up regularly on issue loans.I ditched Fragrant Clematis because of their poor default/late payment management with loans overruning by 6mnths/year without significant comment & no default interest!
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oldgrumpy
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Post by oldgrumpy on Mar 5, 2015 11:39:45 GMT
......Oh, and on this forum you are expected to refer to the platform by inane and often euphemistic pairs of words .... as I have done thrice.  Don't worry about whether your chosen duo phrase has been done before. I'm not even sure Fishnet Cabbages read our comments any more.....  Just FC .... not usually the others ... unless I'm out of date(s).
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,545
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Post by ilmoro on Mar 5, 2015 12:00:13 GMT
......Oh, and on this forum you are expected to refer to the platform by inane and often euphemistic pairs of words .... as I have done thrice. Don't worry about whether your chosen duo phrase has been done before. I'm not even sure Fishnet Cabbages read our comments any more..... Just FC .... not usually the others ... unless I'm out of date(s). Aw, spoilsport! Giving my brain a workover trying to think of Ks. I shall revert to convention, dont want to show bad form. 
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Mar 5, 2015 12:05:27 GMT
Well, times do move on... I'm not just called OG. Quite often it's OF! Clue: A combination of distance and oil paintings (4). |
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markr
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Post by markr on Mar 5, 2015 12:24:16 GMT
Well, times do move on... I'm not just called OG. Quite often it's OF! Clue: A combination of distance and oil paintings (4). My wife used to run a mail order craft business and we stocked a range of craft kits known collectively as "The Old Masters & Fine Art Kit Collection", which was a bit of a mouthful and was reduced to the obvious abbreviation. One day a customer rang with a question about them and Sally said, "I'll just get the Old Farts catalogue and have a look". Luckily she was a regular customer and saw the funny side.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Mar 5, 2015 12:25:37 GMT
I would say little more than my own euphemism for this platform........Fu**ing Cra**iness.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Mar 5, 2015 13:54:40 GMT
Probably a more worthy cause than certain scrap dealers and lawyers, but the rate will be too low for the risk  |
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TitoPuente
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Post by TitoPuente on Mar 5, 2015 15:41:35 GMT
. Being able to achieve 10-12% on secured loans elsewhere, compared to 7-9% on loans with only potentially worthless PGs, was a persuasive factor. Which platform offers 10-12% on secured loans?
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ianj
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Post by ianj on Mar 5, 2015 16:05:27 GMT
. Being able to achieve 10-12% on secured loans elsewhere, compared to 7-9% on loans with only potentially worthless PGs, was a persuasive factor. Which platform offers 10-12% on secured loans? Have a look at the boards on this forum for Assetz Capital, Saving Stream, Thin Cats and Ablrate. Also Funding Secure and the new kid on the block Moneything.
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Post by GSV3MIaC on Mar 5, 2015 16:54:12 GMT
Auctions with anything other than a Director's Guarentee are fairly rare at Furiously Knitting, so I will look into the property loans on here. Are there any cases, where the repayment of capital at the end of the loan is delayed while it is refinanced, or awaiting a sale? One additional question - how reliable are the estimated default rates for each risk band? The property loans have not been around long enough to have capital repayment failures yet, although there is one (in several parts) which is going to overrun. Flavoured Crisps approach to this was to RBR (risk band remove) the loans, so they can't be sold (at any price) which frankly sux - they issued a new loan to cover the extra cash required during the overrun (which you CAN buy/sell). Hopefully they'll think of a better approach 'ere long .. pre-agreed grace period, with penalty interest rate, and not freeze the loans, would be favourite. The risk band estimates are flaky - go look at the statistics page, or even better download and analyse the loan book. Seems a bit better of late, but last time I looked (at the earlier loans with more history) there was no STATISTICALLY SIGNIFICANT difference between the losses on A+s or Cs (actually at the time C-s were best, but that's partly, if not exclusively, down to the 'infant loans are healthy, generally, they get sick after 8-9 months' and C-s were all newish then. Part of the problem is 'too many factors' (loan size, duration, etc. etc) none of which have been stable over history (originally there were, iirc, mostly 3 year loans and <£250k .. now they go from 6 months to 5 years, and up to several million), and the factors are all related (if you look at 'loans over £250k' you are also looking at 'loans formed in the last 2 years' whether you know it or not). Property loans look very good - well they would, FC has all the interest in hand on day1, so they can't fail to pay the interest, and they are all so new, as I said, they have not had a chance to fail (although FC do seem to be keeping an eye on them, which is more than they do one most loans). To make 10% or more you really have to plan to 'slow flip' (or even fast flip) - i.e. buy too much of something at a high rate and sell it (at a profit!) before it goes mammaries skyward (anywhere between 2 weeks and 8 months, depending on your level of pessimism). That'll take more time/effort (but if you have researched a company and spotted a gem, and can get it for a ludicrously high rate, like 14.8%, the EXTRA effort involved in buying 'twice as much as you need' and then reselling it might be worth while). Enough rambling already .. Good luck!
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Post by goldservice on Mar 5, 2015 17:07:01 GMT
10-12%? Well, in the interests of spreading risk, I recently had a look at the AC site and also at the AC board. I concluded that it would take a long time to invest my target (£10-20k), that the high returns were distorted by the inclusion of accrued interest at penalty rates such as 18% on late loans even though such interest may never actually be paid (did I understand that right?), and that there was a poor range of lending opportunities (only around 10-12 loans, iirc.) So I'm still with just RS and Flaked Cod.
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coop
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Post by coop on Mar 5, 2015 17:14:17 GMT
MoneyThing are going to be putting up £100kish of new loans in the coming week or so, at a 12% flat rate.
FundingSecure has a currently fairly steady trickle of loans at 10-13%.
Ablrate has an aeroplane at 12% - £100 minimum but the asset security looks very good to me.
I have no experience with SavingStream or ThinCats - but I don't have much money and they look much more targetted at larger investors.
I have £300 on AC and have invested the grand total of: £0.00!
I find the website clunky and confusing; and I don't like the look of most of the loans anyway.
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blender
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Post by blender on Mar 5, 2015 17:28:01 GMT
... One additional question - how reliable are the estimated default rates for each risk band I think the loss rates for each band will turn out to be statistically very accurate. Why? Because the definition of the risk band is the expected loss rate and nothing else. FC's evaluation criteria for each band might be adjusted so that the loss rate equals the expected rate. The loan book seems to be performing better than expected - therefore the standards for each band have been and might in future be relaxed/simplified to admit more risk into each band (has anyone noticed that?). That improves FC's (and lenders') competitive position with the potential borrowers. Two concerns. In the A+ the inclusion of the property loans, with loss rates which should prove better that 0.6%, will mean that the standards for the other A+ loans can be relaxed (try comparing that recent A+ sole proprietor logger purchase with the B cranes and jibs from 2013 - both asset-owned). Two very different distributions for the first-charge property loans and the new A+ business loans can combine to one overall A+ 0.6% average. So watch what you buy at A+. Also the fact that a significant portion of the partial loans are whole loan rejects suggests that those may turn out to be on the lossier side of the band (though we do not know why they are rejected) - while the loss rate is defined over all the partial and whole loans. These two factors combine at A+, so look at the A+ whole loan rejects very carefully.
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Post by GSV3MIaC on Mar 5, 2015 17:31:36 GMT
Goldservice - me too, although I think you could get the money invested fairly quickly if you were not too fussy about diversification level (there are 10 or more decent loans to buy into most of the time .. not liking (on shore) wind turbines puts me at a disadvantage). There are, though, and alarming number of loans currently in 'paused' (=RBR?) status, given how they are supposed to be secured .. getting the money back on those could take a while, at best.
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oldgrumpy
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Post by oldgrumpy on Mar 5, 2015 18:02:14 GMT
"...I think the loss rates for each band will turn out to be statistically very accurate. Why? Because the definition of the risk band is the expected loss rate and nothing else....
As far as I know Flabby Custard has not changed its "estimates of bad debt rate over the next year" since I first invested in 2012. Are they really saying that nothing has changed since then, and their original estimates have not needed adjustment? I don't believe it. A+ 0.6% A 1.5% B 2.3% C 3.3%, then later D ....ahem .. I mean C- 5% .
I agree with blender about mistrusting what is provided as A and A+ (or the others for that matter) when HNW investors can pick and choose the whole loans (I don't believe those loans are random). Bad move by Fast Cars - much fairer if they must have those lenders would be something similar to the government stake, e.g 50% of the loan could be given to a single lender at the average rate landed on by the subsequent auction to everybody else. Otherwise they should be forced to bid like everybody else, and don't say it can't be done. Longshanks does it on every big a/A+ loan!! Does anyone know at what rate the whole loans do go to single lenders?
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Don't worry about whether your chosen duo phrase has been done before. I'm not even sure Fishnet Cabbages read our comments any more.....
