fasty
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Post by fasty on Mar 11, 2015 20:35:54 GMT
True Bobo, but FC has times to sell and times to buy. This is a time to sell, to dispose of low rate property loans bought with a cash back and high rate business loans which look risky and have been held for, say 6 months. Of course FC may have reached a stable position now, but in the past, times to buy have always returned. You have to go with the tides, you cannot control them - or just be an Autobidder of course. I'd echo this. In the years that I've been with Fruity Cupcakes, rates have wafted cyclically up and down like a tart's knickers. This puzzles my simple non-financial mind, because I can see base rates firmly pinned around zero. Still, I acknowledge that's how it seems to be, and at the moment I'm trying to be disciplined and keeping my bidding finger away from the low numbers. It is indeed proving a reasonable time to weed out the dross. Late payers and retries are being ritually sacrificed on the autobid altar.
The only thing that puzzles me at the moment is an apparent poor interest in buying those property loan parts that I have on the SM. Normally, they shift slowly but surely, however the last week or so has been very quiet, perhaps 20% of the usual rate. Is it because there have been so many new property loan requests?
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coop
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Post by coop on Mar 11, 2015 21:25:36 GMT
Well, I've been doing the selling bit and now have a pile of money sitting doing not very much. While waiting for the good times to return, what should I do? I've looked at other sites but am not attracted to them. Shall I just park my money in the best loans that can be achieved (ie the larger loans), buy only in small parts (say, £20) and thus be liquid if the good times ever return? That way, at least I'll be doing better than on RS, and will be more liquid as well. Sorry I cannot answer that but there is a general thread on this board which tries to. The idea is to park it at the best rate you can get which is both safe and sufficiently liquid. All FC loans are pretty safe up to the second repayment, and interest only property loans for longer. I am hoping for a nice 12% B interest only short term finance loan with a first charge and where FC has all the interest in the bank. Cash back would be a nice bonus. Keep dreaming!
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is
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Post by is on Mar 12, 2015 9:15:49 GMT
Sorry I cannot answer that but there is a general thread on this board which tries to. The idea is to park it at the best rate you can get which is both safe and sufficiently liquid. All FC loans are pretty safe up to the second repayment, and interest only property loans for longer. I am hoping for a nice 12% B interest only short term finance loan with a first charge and where FC has all the interest in the bank. Cash back would be a nice bonus. Keep dreaming! You can try AC - no trading profits but better rates (and no lender fee)
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blender
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Post by blender on Mar 12, 2015 10:08:05 GMT
Yes I am thinking about AC, but will probably wait till the new tax year to make a decision to be unfaithful to FC - unless my dream loan comes along first. There really is nothing here at present unless you want to fish for early closes and flip.
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Post by davee39 on Mar 12, 2015 10:26:29 GMT
I'd go for a portion of fish and flips.
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is
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Post by is on Mar 12, 2015 12:45:11 GMT
Yes I am thinking about AC, but will probably wait till the new tax year to make a decision to be unfaithful to FC - unless my dream loan comes along first. There really is nothing here at present unless you want to fish for early closes and flip. Yes, all rates currently bid down beyond reason. With all the free cash, I even took a bite of 11520 (24m 8% A+ 2%cb) - even though rate could be higher for the maturity.
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coop
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Post by coop on Mar 12, 2015 13:00:17 GMT
I'm just weighing up how much to bite off from 11520 myself; the cashback is very nice but they're not too liquid these loans; I've sold 1 part out of three of the most recent property I bought (yorks); and I have a heap of cheshire; the most illiquid of all property loans!
Edit: Also, provided you get out early enough the rate improves - if you can sell all your loan parts at the 6 month mark you've effectively got 4% annual equivalent cashback so 12% annualised minus 1% fee; plus an improved tax situation for most people.
It is a fairly big if though; if you hold to term the rate is 9% minus fee.
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wysiati
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Post by wysiati on Mar 12, 2015 13:10:13 GMT
To claim 'beyond reason' is an exaggeration.
Not all lenders need a built-in flipping margin. Others want to park money on platform earning something rather than sit with excess cash or shift funds elsewhere. Etc etc.
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coop
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Post by coop on Mar 12, 2015 13:15:40 GMT
is - do you have some level of automation or just a quick finger? 
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blender
Member of DD Central
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Post by blender on Mar 12, 2015 13:29:05 GMT
Yes I am thinking about AC, but will probably wait till the new tax year to make a decision to be unfaithful to FC - unless my dream loan comes along first. There really is nothing here at present unless you want to fish for early closes and flip. Yes, all rates currently bid down beyond reason. With all the free cash, I even took a bite of 11520 (24m 8% A+ 2%cb) - even though rate could be higher for the maturity. 11520 has had a torrid time. Listed as one £500k loan at 7% - crashed. Half listed at 8% with 0.5% cash back - filled. Second half listed at 8% with 0.5% cash back - crashed. Second half listed at 8% with 2% cash back - we shall see but I may have a dabble before it closes, unless something better turns up.
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Post by GSV3MIaC on Mar 12, 2015 17:05:00 GMT
This puzzles my simple non-financial mind, because I can see base rates firmly pinned around zero. Still, I acknowledge that's how it seems to be, and at the moment I'm trying to be disciplined and keeping my bidding finger away from the low numbers. It is indeed proving a reasonable time to weed out the dross. Late payers and retries are being ritually sacrificed on the autobid altar.
The only thing that puzzles me at the moment is an apparent poor interest in buying those property loan parts that I have on the SM. Normally, they shift slowly but surely, however the last week or so has been very quiet, perhaps 20% of the usual rate. Is it because there have been so many new property loan requests?
I think FC are just continuing to see-saw between too many borrowers (high rates result) and too many lenders (low rates result), must be a real balancing act, given that even £10k extra chasing a home can drive down rates until someone loses interest, which can be a long way. FC does have a lever to direct recycled repayments into either the primary or secondary market - at the moment I suspect the helm is hard over towards primary. Many of those property loan parts you'd like to sell are earlier tranches of loans where there are current listing for later tranches (with cashback), so if you are selling at par, autobid is probably headed for 'tranche N+1' rather than the ones you'd like to unload from earlier. If you are selling at a discount, which rules autobid out, then there is plenty of competition there too.
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is
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Post by is on Mar 12, 2015 19:15:23 GMT
is - do you have some level of automation or just a quick finger? Tried automation but not bothering with it now - not enough going on to warrant it yet. So finger it is for the moment!
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is
Posts: 108
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Post by is on Mar 12, 2015 19:21:39 GMT
To claim 'beyond reason' is an exaggeration. Not all lenders need a built-in flipping margin. Others want to park money on platform earning something rather than sit with excess cash or shift funds elsewhere. Etc etc. To clarify, "beyond reason" was meant as "significantly outside the no-arbitrage price envelope for equivalent/better risk profiles available on other platforms".
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is
Posts: 108
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Post by is on Mar 12, 2015 19:30:21 GMT
I'm just weighing up how much to bite off from 11520 myself; the cashback is very nice but they're not too liquid these loans; I've sold 1 part out of three of the most recent property I bought (yorks); and I have a heap of cheshire; the most illiquid of all property loans! Edit: Also, provided you get out early enough the rate improves - if you can sell all your loan parts at the 6 month mark you've effectively got 4% annual equivalent cashback so 12% annualised minus 1% fee; plus an improved tax situation for most people. It is a fairly big if though; if you hold to term the rate is 9% minus fee. Interesting, I've sold 68% of my Yorks (10956) holding already, and parts go every day...
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wysiati
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Post by wysiati on Mar 12, 2015 19:35:36 GMT
To claim 'beyond reason' is an exaggeration. Not all lenders need a built-in flipping margin. Others want to park money on platform earning something rather than sit with excess cash or shift funds elsewhere. Etc etc. To clarify, "beyond reason" was meant as "significantly outside the no-arbitrage price envelope for equivalent/better risk profiles available on other platforms". That's all very well but it is your assessment and you act accordingly for your own funds. One cannot naively assume a similar level of rationality for all other market participants and there may be returns to the odd show of 'strategic irrationality' - if the result is that competitors shift some funds into property loans or bugger off to another platform then it may have some useful purpose.
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