blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 30, 2015 14:15:42 GMT
So in essence you deposit money to buy 2% CB; sell at a loss of .75% including fee to make a profit of 1.15% plus interest. Wow, I really do not do all those calculations. Should that be 1.25%? Esssentially yes, I was doing the same as you, I thought. If a loan was bought a few months ago at 2% cash back, then it seems to make sense to sell it at up to 0.5% discount in order to buy another loan with a 2% cash back, interest rates being equal. There are bots about which bite at -0.5%. It also means that you can avoid getting too near the repayment date, which is the risk with these loans - though I suppose there must be a risk of FC losing in the works the money it has collected to pay interest. This is just 'new lamps for old', but to get it in proportion 1.25% of £5k is only £62.50. Normally the money to buy another loan would be from sales and repayments, but we were rather caught out by this latest burst of 2% - perhaps the last - so the FC capital was temporarily increased but is nearly back down. Two weeks dead time is much too generous.
|
|
coop
Member of DD Central
Posts: 714 
Likes: 571
|
Post by coop on Mar 30, 2015 14:25:27 GMT
Ermm; the .1% is my cut  APR (2 weeks dead time) Cashback after fees APR Total APR Assuming sale after exactly: 8% 1.25% 2 Weeks 0 32.50% 32.50% 4 Weeks 4% 16.25% 20.25% 8 Weeks 6% 8.13% 14.13% 12 Weeks 6.67% 5.42% 12.08% 16 Weeks 7% 4.06% 11.06% 20 Weeks 7.20% 3.25% 10.45% 24 Weeks 7.33% 2.71% 10.04% 28 Weeks 7.43% 2.32% 9.75% It would be very worthwhile really if the loans were about  |
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 30, 2015 14:29:12 GMT
blender: Meanwhile I have registered for Ablrate - my first serious look at another p2p platform. From one Flying Circus to another, eh? (I see that Ablrate is in part an aviation specialist.) And at the moment showing itself to be more Von Richthofen than Monty Python - long may it continue  At present I would not bet on the ability of either of them to be able to design the machine gun to shoot between their propeller blades. Ablrate are offering a good deal on a plane to get people in, while FC have had four years to create a reliable working platform and you have to spend too much time trading to get good rates on large asset-backed loans (see above). [ One Monty Python experience so far - It's name is Ablrate but it is explained that you should pronounce it Abl erate. So why not call it Ablerate then, and save the bovver?]
|
|
|
|
Post by GSV3MIaC on Mar 30, 2015 15:11:35 GMT
There are bots about which bite at -0.5%. They have to be fairly brain dead or broken bots then, since they can buy the same thing with the cashback intact (either earlier for the tranche you are selling, or just buy the new one). I guess it just goes to show that artificial stupidity is alive and well. 8>. I might have a dabble of the 2*£20 sort of level with 1% cashback, depending what else shows up, but whether they can scrape up a whole £400k that way I would not like to guess. Meantime I'm joining the flood/trickle of cash off to look for a warmer home (hopefully some place where they can add up the account and get the right answer more often, and inside an ISA shelter). p.s. I see we now have a full spread out there - 8% with 1% cashback, and 8% with no cashback, and 7.5% with 1% cashback (unless the 8%/none is an error (or just cynical autobod bait)).
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 30, 2015 15:22:53 GMT
My guess is that the bots were set before the new 2% cash back loans were noticed. They are not stupid - I will resolutely defend them until they stop buying my loan parts. Meanwhile we now have a 7.5% loan with 1% cash back. Mr Optimist is back in charge this week.
Yes 11953 looks like Autobidder fodder.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 31, 2015 15:19:42 GMT
I sense some Furtive Chimps market-testing going on. Two very similar property loans listed within minutes (11987, 11989), both A+ / 18 months / £200k-ish / First Tranche. But one is 9% (no CB) and the other 8% + 1% CB. Which to fill first? - Place your bets!
|
|
bloodycat
Member of DD Central
Posts: 184
Likes: 84
|
Post by bloodycat on Mar 31, 2015 15:42:12 GMT
flippers go for the CB, for people who intend to keep to term the other looks a better bet all-round, but that assumes the majority of bidders are rational.
|
|
|
|
Post by GSV3MIaC on Mar 31, 2015 15:57:04 GMT
But both are somewhat sucky compared to the 8%PA/2% Cashback, on less than a year, which was offered last week. Again, I might have a couple of quid in either/both but I'm not going to be throwing the Fleeing Customers withdrawal stream into reverse for either of those two.
And Easter next week, so that's probably at least another two days of low/no new loan activity. If repayments don't stall ("Ohmigawd . Easter!!. Didn't see that one coming. Oh Oh Oh, end of the tax year too .. oh rats .. ") the autobod money will easily soak up what little there may be, down around MBR.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 31, 2015 16:09:54 GMT
Agreed. I will be passing up both of these investment opportunities, but sadly the property loans listed yesterday are filling faster than I'd hoped. I fear the 2% panic cashback lever may not be pulled again for a while.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 31, 2015 16:14:11 GMT
On the plus side, it seems I may have acquired some unexpectedly early-closing bits of A+ helicopter, my first new SME loan parts in almost 2 weeks. What a thrill!
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Mar 31, 2015 16:37:06 GMT
Purse tightly zipped here.
|
|
|
|
Post by GSV3MIaC on Mar 31, 2015 17:14:33 GMT
On the plus side, it seems I may have acquired some unexpectedly early-closing bits of A+ helicopter, my first new SME loan parts in almost 2 weeks. What a thrill! Which one was that? I think I may have slept through it. (or maybe my rate hurdle was set higher than yours). 8>.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 31, 2015 17:30:42 GMT
On the plus side, it seems I may have acquired some unexpectedly early-closing bits of A+ helicopter, my first new SME loan parts in almost 2 weeks. What a thrill! Which one was that? I think I may have slept through it. (or maybe my rate hurdle was set higher than yours). 8>. 11806. I'd written it off with a day to go, but it must have been closed soon after as my final bids have stuck. Not worth keeping for long but they'll sell well enough on the SM in a couple of months' time.
|
|
|
|
Post by GSV3MIaC on Mar 31, 2015 19:09:26 GMT
Ah yes, I did get a bit of that one. The auction closed around 10:21am yesterday, a day and a few hours early. Nor spectacular, rate wise, but as you say the best in a long time.
|
|
fasty
Member of DD Central
Posts: 1,038
Likes: 388
|
Post by fasty on Mar 31, 2015 19:09:54 GMT
Purse tightly zipped here. I opened my virtual wallet, - toyed with the idea of 8%+1% cashback over 18 months - mulled over 9% with no cashback over 18 months, which potentially sounds a better deal, even after tax. ... then tightly closed the virtual wallet again.
Once one has sipped from the sweet honeyed pot of 2% cashback, or lapped up a 12% bridging loan, 9% is hard to get so excited about. These new property loans will have to find a way to fill further tranches. I wait with interest.
|
|
