TitoPuente
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Post by TitoPuente on Mar 10, 2015 14:28:53 GMT
I really can't believe you guys are still investing with Fouling Carcass  You have a point, but what are the credible alternatives and how do they compare in terms of platform risk, asset risk, and yield?
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coop
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Post by coop on Mar 10, 2015 14:33:24 GMT
I for one am slimming down my Financial Condundrum portfolio. I've got a bit of money in FS; a bit more in MT and will put a bit in ablrate soon.
All pretty young companies which is really the only attraction for me to FC at the moment; in Rumsfeldian terms there are far less opportunities for "unknown unknowns" with FC; whereas the other platforms have a share of "known unknowns" and goodness knows how many "unknown unknowns".
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jonno
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nil satis nisi optimum
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Post by jonno on Mar 10, 2015 14:44:21 GMT
I really can't believe you guys are still investing with Fouling Carcass You have a point, but what are the credible alternatives and how do they compare in terms of platform risk, asset risk, and yield? I would agree that Formidably  score well on platform risk, but I'm across AC,SS,REBS,FS,Abl,MT, et al,and they have all produced a far higher yield with far fewer losses. (So far!!). I really don't see the point of lending to a secure platform that contains rubbish.
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Post by GSV3MIaC on Mar 10, 2015 17:26:54 GMT
The logical solution to these fiascoes would be to scrap the fixed interest rate and let the market decide the pricing. I suggested that (in the other place) when the first one failed to fill some time ago. Bad enough they tell me what the risk band is (and about as accurate as the met office), but I really don't want to be told what the interest rate should be too .. that's starting to look altogether too much like Santander lite / Zopa / etc. 'gi us yer munny and we'll probably pay yer some interest'. There is definitely a place for fixed interest, but I'd like the place to be 'elsewhere'. As has been mentioned though there is a lack of any alternatives (all sucked up by whole loans? - why don't THEY want these wonderful property deals??). plus the platform struggles a lot less with fixed interest.
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Post by longjohn on Mar 10, 2015 17:53:41 GMT
... As has been mentioned though there is a lack of any alternatives (all sucked up by whole loans? - why don't THEY want these wonderful property deals??). plus the platform struggles a lot less with fixed interest. The current Loan Book shows 109 'Residential property development' loans at fixed interest. 108 were offered as part loans and just one was offered as a whole loan. This was rejected so they're all part loans. I wonder how many would have been taken up if they were actually offered as whole loans. John
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coop
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Post by coop on Mar 10, 2015 18:02:35 GMT
Probably none, all their money is on a juicier rate and paying back principle monthly so they can reinvest.
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blender
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Post by blender on Mar 10, 2015 19:27:31 GMT
For the institutional lender, I don't think FC add enough value on property loans, in assessing risk and making collections, when the whole loan is secured on property anyway. And I can imagine what an institutional lender would say about giving FC the interest up front so that it can be paid back monthly, less the fee for doing it.
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baldpate
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Post by baldpate on Mar 12, 2015 14:19:59 GMT
11277 - unsupported by FC - failed to fill - bid monies returned. I'd love to hear the discussions with the borrower! Wow! Really not wanted on the Financial Contingency balance sheet. Will be instructive to see what they do. Does the borrower now have half the money at 8% instead of half the money at 7% (when it was one loan request)? Not very satisfactory position for the borrower. Egg on face. Options are to re-list with a cash back or higher interest rate - or keep listing half the outstanding sum required ad infinitum. Well, now we know - it's back with a 2% ( Yes -you read that correctly! - 2%) cashback. Those were the days.
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blender
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Post by blender on Mar 12, 2015 15:28:54 GMT
Wow! Really not wanted on the Financial Contingency balance sheet. Will be instructive to see what they do. Does the borrower now have half the money at 8% instead of half the money at 7% (when it was one loan request)? Not very satisfactory position for the borrower. Egg on face. Options are to re-list with a cash back or higher interest rate - or keep listing half the outstanding sum required ad infinitum. Well, now we know - it's back with a 2% ( Yes -you read that correctly! - 2%) cashback. Those were the days. I can remember the days when you could get 2% cash back on a one year loan, and I turned my nose up at a two year loan. Meanwhile FCPF (which sounds too much like an expletive) have just propped up a London loan, I think the third tranche of many. So we may see some more of these 2% offers - but we may have to keep them to term. 11166 is not moving at par (recent 2% 14 months). Edit: and now a shorter term 2%, but at 7% gross.
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Post by thesnoop on Mar 12, 2015 15:41:34 GMT
My worry also. I have exposure to the first tranche too and those parts are not selling too well for me either  . That said, there is sweet f*** all else on offer from Funky Chimps these days... I was moving money to AC but recent developments there are not too promising either. Hmm, this pooch is lacking inspiration. |
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Post by davee39 on Mar 12, 2015 16:24:46 GMT
If the plan is to hold to term then the property looks poor value next to AC (no fees), since the risk arises at the end of term and it is unclear how capable false cabbage will be if a loan fails to repay. 7% loans look remarkably stingy when a 1% fee has to be factored in.
A further benefit of AC appears to be the very liquid secondary market, at least for those loans which have no parts available, for amusement you can read your account record and see loan part purchases and sales of 1p.
I did go for a few property parts at 2% last time they were on offer, but had to discount to -1.3% for a fast exit. I will not be playing again.
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Post by GSV3MIaC on Mar 12, 2015 16:55:03 GMT
FC seems to hope you (or someone similar) WILL be playing again, even if only because there is s*d all else to put your money in. 8>.
I think they need to open up the 1% diversification goal on autobid for property loans (2% or more), and/or find a whole bunch of new punters .. if you're trying to raise £3m (which I think is their biggest loan?) off a 0.5% diversity goal, you need £600M worth of lenders who are playing .. even at 1% this is £300M, which I suspect is more than the available pot by some margin (iffin the institutions won't partake, and the BBB is not allowed to either).
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am
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Post by am on Mar 12, 2015 17:08:01 GMT
When a tranche of the big Congleton project was relisted at 2% cashback, I made a small contribution to it getting away (since I was already exposed, at 2% of my portfolio). I managed to sell them on at a 0.8% discount fairly quickly, so it appears that there is demand for these loans, but for some reason it's not being reflected in the primary market.
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Post by GSV3MIaC on Mar 12, 2015 17:12:55 GMT
If you are selling them at a discount (or premium) it is NOT to the set of folks who'd be using autobid (in either market), rather to (probably newbies) people who manually shop for bargains, but maybe were not around when the parts were first offered. [Actually I confess that even bought a few at 0.8% discount myself (to see on at par 'one day') after I had sold the initial bunch at par.]
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blender
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Post by blender on Mar 16, 2015 14:05:39 GMT
New property loan 11410 has just closed 98% full, needing £5k, without cash back or the attentions of FCPF. Will it be ditched, re-listed with a better deal, or perhaps deemed to have been filled by magic?
Meanwhile new property loan 11267 has today suddenly acquired a 1% cash back after going 6 days and filled only 75%. It still needs £103k
Whatever the reasoning behind these decisions, it does look as if the second loan is getting far more favourable treatment from FC.
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score well on platform risk, but I'm across AC,SS,REBS,FS,Abl,MT, et al,and they have all produced a far higher yield with far fewer losses. (So far!!). I really don't see the point of lending to a secure platform that contains rubbish.
. 