adrianc
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Post by adrianc on May 7, 2015 17:31:27 GMT
Six sold here (over 10% of what I've got listed) this month so far, after virtually nothing last month.
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markr
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Post by markr on May 7, 2015 18:32:32 GMT
I've sold 4 today, 3 in 11429 and one 11411. Two of the 11429 were to the same user though, which presumably means they must be a manual purchase?
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blender
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Post by blender on May 7, 2015 18:52:13 GMT
Yes, Autobid only buys one part and only from Borrowers not currently held.
Both of those loans do not have any parts offered at a discount, and so any manual purchaser buying for diversity would have to buy at par. So whether any of those sales are Autobid is questionable. When there are parts at a discount but you sell at par - that is very likely Autobid, or when you sell a group of one part in each of a number of loans at par to one lender. (But people do strange things - I have sold at -0.4% discount when offering exactly the same parts at -0.6% with a better buyer rate)
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Post by phlitb on May 7, 2015 18:56:28 GMT
My sales were also 11429 and 11411, so does look like they were manual
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coop
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Post by coop on May 7, 2015 19:46:42 GMT
I chop and change too much to have any useful statistics.
I think I will change all to par soon though as I'm only prepared to offer .6% discount at most, and most property loans I have parts for currently have some at a closer to 1% discount.
If I stick to the plan I'll let you know how it goes.
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Post by davee39 on May 8, 2015 8:49:43 GMT
I chop and change too much to have any useful statistics. I think I will change all to par soon though as I'm only prepared to offer .6% discount at most, and most property loans I have parts for currently have some at a closer to 1% discount. If I stick to the plan I'll let you know how it goes. I have previously been able to shift 2% cashback parts at -0.6%. They now seem to need -1.3% for a quick sale (on 12 month loans). I suspect the property market is truly saturated and even 2% Cashback is going to be insufficient.
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blender
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Post by blender on May 9, 2015 7:18:05 GMT
I have sold a loan part at par - 11742, when they are for sale at 0.4% discount. Looks like Autobid. Some time after midnight. Any other experiences?
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SteveT
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Post by SteveT on May 9, 2015 8:29:40 GMT
I had one bite at par yesterday but that was on 12360, one of the rare 10% A-rated property loans. There are a few parts available at -0.2% / -0.3% on that one but most are listed at par so I took it to be a manual buyer.
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Post by GSV3MIaC on May 9, 2015 19:12:52 GMT
I have sold a loan part at par - 11742, when they are for sale at 0.4% discount. Looks like Autobid. Some time after midnight. Any other experiences? One part of 9281 at 9:22 this AM, but that is the only one for ages (not counting 12149 which IIRC was no cashback but a high rate, and those I sold at a small markup so not to autobodge).
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blender
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Post by blender on May 10, 2015 7:24:07 GMT
I have sold a loan part at par - 11742, when they are for sale at 0.4% discount. Looks like Autobid. Some time after midnight. Any other experiences? One part of 9281 at 9:22 this AM, but that is the only one for ages (not counting 12149 which IIRC was no cashback but a high rate, and those I sold at a small markup so not to autobodge). Only two at par for me in 10 days. It could be that FC have realised that the 2% cash back is the minimum price of the underwriting they need - cheap given the amount of time spent. And consequently they are acting on a perception (oft expressed here) that Autobidders are disadvantaged by purchases at par. Our complaint would be the lack of transparency. But what is Autobid doing on the rest of the SM? I have no idea. Edit Monday pm: and now another part of Pinner, but I am spent unless it takes a week to fill and the SM is turned on again.
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min
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Post by min on May 11, 2015 14:17:05 GMT
Just sold first one for almost 4 weeks. And it's one of the Tewksbury ones  |
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Post by elljay on May 12, 2015 6:28:45 GMT
[Edit: I see this is updating again - thanks elljay!] Finally got round to fixing it last night. There were quite a few others that had maxed out that I've just fixed so should also start updating again.
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coop
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Post by coop on May 15, 2015 12:05:12 GMT
It could just be that the way autobid has been reconfigured means these loans are no longer attractive enough for autobid to bite.
Take an example of someone who deposits £5000; turns on autobid; sets diversification target of 1% and makes no more adjustments.
They are looking for a diversified portfolio of 100 parts of £50 across A+, A, B, C & C-; therefore 20 parts in each.
There are currently 6 cashback property loans on primary market; about another 7 with bids available over 8%; and when I counted last night about 20 A* loans with available parts of £50 or less for 8.1% or more.
Our property parts would only get a look in if an autobidder only wanter A+ or A+ and A loans.
This is obviously based on a lot of assumptions which may/may not be true.
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registerme
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Post by registerme on May 15, 2015 13:45:24 GMT
One aspect of this that interests me is that a functioning secondary market is a critical part of the overall platform offering. If people feel that the secondary market isn't working for them then it brings into question the idea that there's liquidity there that means you can exit loans at some point, even if there's a price to be paid to do so.
FC can't afford to ignore the secondary market. That's, I suspect, means that they might have to throttle the introduction of new loans. Obviously this will conflict with their desire to build the loan book quickly.........
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registerme
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Post by registerme on May 15, 2015 15:37:24 GMT
I think there's two aspects to this.
Firstly, FC set a precedent when they introduced cashbacks. Who would invest in a new property loan without a cashback now (or, equivalent from an investor perspective, a higher interest rate)? If you wouldn't invest in a new property loan without a cashback why would you invest in a SM property part offering the same rate at par? Pretty much the only reason is because that behaviour has been programmed - I'm looking at you auto-bid. If we're correct in thinking that auto-bid can only bid in the SM at par, it is still rational for it to purchase PM property loans with cashbacks even if the cashback aspect isn't deliberately designed into it. Essentially it makes sense for it to prioritise the PM over the SM. The same logic applies to manual bidders.
Second, just looking at current A+ loans, there's currently £3,703,880.00 of new demand ending in less than a week. If that demand can't be met with rolled over investor cash the delta has to be met by new money. Is the reduced volume of SM parts selling at par a leading indicator for new loan demand outstripping available investor funds? If so we should expect rates to go up, and some loans to fail to achieve their funding target. It would also mean that to shift property parts (well, any parts) on the SM you're going to need to provide discounts. I guess the problem with that might be that auto-bid may no longer look at them.....
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