|
|
Post by ajduk on May 11, 2015 19:22:12 GMT
I suspect a contributing factor for this selling out in 6 mins was the repayment of PBL23 sending £200K back to users shortly before this £595K went live. Probably would have taken 15 mins otherwise  Also not sure where savingstream got his 45 minutes notice from - I received notice by email at 14:09. Definitely agree with a cap on max investment for first 24 hours with notification (would prefer a £££ cap rather than % cap) OR just no notification & no cap at all and let it drip in. Does anyone know how long PBL27 took to fund? |
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,322 
Likes: 11,534
|
Post by ilmoro on May 11, 2015 19:46:10 GMT
Also not sure where savingstream got his 45 minutes notice from - I received notice by email at 14:09. Text alert went out 20mins before that Definitely agree with a cap on max investment for first 24 hours with notification (would prefer a £££ cap rather than % cap) OR just no notification & no cap at all and let it drip in. Does anyone know how long PBL27 took to fund? Dont think PBL27 was particularly quick but PBL28 took 6mins by SS reckoning
|
|
|
|
Post by savingstream on May 12, 2015 7:55:28 GMT
There were just over 200 investors who managed to initially invest in PBL032 which gives an average investment of £3,000 or 0.5% of the loan size. As clearly indicated in this thread, there were investors who did not get a chance to invest in this loan, through website error or simply because the timings didn't suit, so how do we know at what level to cap an investment at for the first 24 hours? If we capped it at £1,000 per investor and 300 investors invested, 50% of the loan would be filled and we would face the same feeding frenzy and investor disappointment at the 24 hours later point when everyone went back at the same time to top up their investments.
At present investor demand is greater than loan supply, we believe that rather than add temporary investment caps, we should try to increase supply of good quality bridging loans that have the financial margin available to pay our investors the required 12%. An alternative option is to reduce the rate at which we offer for each loan until the supply/demand balance is levelled.
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on May 12, 2015 8:01:05 GMT
There were just over 200 investors who managed to initially invest in PBL032 which gives an average investment of £3,000 or 0.5% of the loan size. As clearly indicated in this thread, there were investors who did not get a chance to invest in this loan, through website error or simply because the timings didn't suit, so how do we know at what level to cap an investment at for the first 24 hours? If we capped it at £1,000 per investor and 300 investors invested, 50% of the loan would be filled and we would face the same feeding frenzy and investor disappointment at the 24 hours later point when everyone went back at the same time to top up their investments. At present investor demand is greater than loan supply, we believe that rather than add temporary investment caps, we should try to increase supply of good quality bridging loans that have the financial margin available to pay our investors the required 12%. An alternative option is to reduce the rate at which we offer for each loan until the supply/demand balance is levelled. Sorry but I don't agree. In your scenario, the feeding frenzy would come after all investors who wished to partake had got the opportunity to do so which seems like a fair compromise. I managed to get a slice of the loan yesterday but realise I may not be so fortunate in future. With regards reducing the rate from 12%, I think this would be a mistake. It is one of SS's differentiators and if it were reduced, I would be dissuaded from investing further funds and would look to other platforms.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on May 12, 2015 8:30:35 GMT
SS appeals to a wide range of lenders, playing with widely varying stakes. An initial lending quota certainly would help those investing smaller amounts but could actively drive larger lenders to look elsewhere, which hardly helps the platform in the longer run.
Given that the SS website has been flexible enough in the past to offer dual lending routes (monthly interest vs upfront interest), I wonder if a compromise could be to provide two different lending options for the first 24 hours:
Option A) the first £250k (say) of new loans could be restricted to 1 bid up to a maximum of £500 (giving at least 500 smaller lenders the chance to buy into the loan)
Option B) unrestricted bids on the remainder of the loan (plus any balance left from Option A after 24 hours)
I completely agree that the ultimate solution is a steady flow of good quality loans at the 12% rate. Also that loans should be written in trust to isolate each from the others in case of a run of defaults that overwhelms the provision fund.
|
|
huxs
Member of DD Central
Posts: 300 
Likes: 218
|
Post by huxs on May 12, 2015 8:34:57 GMT
There were just over 200 investors who managed to initially invest in PBL032 which gives an average investment of £3,000 or 0.5% of the loan size. As clearly indicated in this thread, there were investors who did not get a chance to invest in this loan, through website error or simply because the timings didn't suit, so how do we know at what level to cap an investment at for the first 24 hours? If we capped it at £1,000 per investor and 300 investors invested, 50% of the loan would be filled and we would face the same feeding frenzy and investor disappointment at the 24 hours later point when everyone went back at the same time to top up their investments. At present investor demand is greater than loan supply, we believe that rather than add temporary investment caps, we should try to increase supply of good quality bridging loans that have the financial margin available to pay our investors the required 12%. An alternative option is to reduce the rate at which we offer for each loan until the supply/demand balance is levelled. Sorry but I don't agree. In your scenario, the feeding frenzy would come after all investors who wished to partake had got the opportunity to do so which seems like a fair compromise. I managed to get a slice of the loan yesterday but realise I may not be so fortunate in future. With regards reducing the rate from 12%, I think this would be a mistake. It is one of SS's differentiators and if it were reduced, I would be dissuaded from investing further funds and would look to other platforms.
Saying that even a doubling of tripling of the number of loans coming through we will still have fastest fingers win scenario (and the corresponding unhappiness) especially on the smaller loans unless a sensible cap is put on the loan amounts for the first 24 hrs. Therefore those who have the time and availability to move quickest will be able to diversify, but those who are busy working will still be shut out of most loans.
Now I am a small time investor so a £1000 cap for first 24hrs would be no problem to me at all, anymore and my diversification targets would be out the window. But I think investors big or small would see the benefit of a cap if it means that they avoid having to hope and pray that they get onto the site quick enough to get a bid in before it all goes (£1000 on every loan is better than 3-5000 on some).
SS must know how many active users they have if they limit the loan so that 70% (or more as most lenders will not hit the cap) of the loan would be taken up if each of the active users bid the full cap then the majority of users will get what they need and the big boys can then pick up the rest 24hr later.
I am pretty sure this would mean a lot more happy lenders and the loans will still get fully taken up within 24hrs.
|
|
webwiz
Posts: 1,133
Likes: 210
|
Post by webwiz on May 12, 2015 11:48:16 GMT
The one thing which would rebalance supply and demand by reducing the amount wanting to be lent would be a default, particularly one which could not be covered by the PF. Be careful what you wish for. IMHO SS should maintain the quality of loans above all else and not reduce their standards in order to try to meet demand.
|
|
Investor
Member of DD Central
Posts: 662
Likes: 590
|
Post by Investor on May 12, 2015 11:53:42 GMT
The one thing which would rebalance supply and demand by reducing the amount wanting to be lent would be a default, particularly one which could not be covered by the PF. Be careful what you wish for. IMHO SS should maintain the quality of loans above all else and not reduce their standards in order to try to meet demand. I think that would 'rebalance' it in the same way as me jumping on the other end of the see-saw that my 2 yr old granddaughter is sitting on!
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 12, 2015 13:06:35 GMT
SS appeals to a wide range of lenders, playing with widely varying stakes. An initial lending quota certainly would help those investing smaller amounts but could actively drive larger lenders to look elsewhere, which hardly helps the platform in the longer run. Given that the SS website has been flexible enough in the past to offer dual lending routes (monthly interest vs upfront interest), I wonder if a compromise could be to provide two different lending options for the first 24 hours: Option A) the first £250k (say) of new loans could be restricted to 1 bid up to a maximum of £500 (giving at least 500 smaller lenders the chance to buy into the loan) Option B) unrestricted bids on the remainder of the loan (plus any balance left from Option A after 24 hours) I completely agree that the ultimate solution is a steady flow of good quality loans at the 12% rate. Also that loans should be written in trust to isolate each from the others in case of a run of defaults that overwhelms the provision fund. I would second the sentiments expressed above
|
|
mv
Member of DD Central
Posts: 156
Likes: 45
|
Post by mv on May 12, 2015 13:15:42 GMT
I logged in when I received the text. Registered my funds and stayed logged in. Refreshed at 1430 and took a chunk.
There was lots of activity on the SM in the run up to 1430.
Hopefully everybody interested will get their fill of the Hemel Hempstead land later this week.
|
|
sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
|
Post by sqh on May 12, 2015 13:42:42 GMT
There were just over 200 investors who managed to initially invest in PBL032 which gives an average investment of £3,000 or 0.5% of the loan size. As clearly indicated in this thread, there were investors who did not get a chance to invest in this loan, through website error or simply because the timings didn't suit, so how do we know at what level to cap an investment at for the first 24 hours? If we capped it at £1,000 per investor and 300 investors invested, 50% of the loan would be filled and we would face the same feeding frenzy and investor disappointment at the 24 hours later point when everyone went back at the same time to top up their investments. At present investor demand is greater than loan supply, we believe that rather than add temporary investment caps, we should try to increase supply of good quality bridging loans that have the financial margin available to pay our investors the required 12%. An alternative option is to reduce the rate at which we offer for each loan until the supply/demand balance is levelled. I wouldn't recommend reducing the interest rate. There are similar property loans with interest at 10% or 11% with equivalent LTV on another platform which take weeks to fill. In my opinion 12% is the psychological difference that makes Savingstream so popular. Yesterday, was unusual because a 200k loan had just been repaid and we hadn't had a new loan for 3 weeks. We also had a months interest and the backdated drawdown interest from PBL016,17,18. I do think the system needs an upgrade because I was logged in well in advance and my connection got dropped.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on May 12, 2015 13:46:39 GMT
"An initial lending quota certainly would help those investing smaller amounts but could actively drive larger lenders to look elsewhere, which hardly helps the platform in the longer run."
I cannot believe that larger lenders are going to be put off by waiting 24 hours for their large chunks (as a second helping), and the scrum would be far less relevant by then if the vast majority of the medium/small lenders have had a reasonable opportunity initially. If they've got the cash, they will still lend it at 12%. If there's nothing left for second helpings, that doesn't matter anyway. When the larger loans appear, there will still be plenty for the moneybagses of this world to invest in.
There is little point in SS recruiting hundreds of new lenders, then allowing large blocks of small-medium size loans to be grabbed by a few professional/semi-professional investors able to be online bang on cue and for the few minutes after loan launch. Does SS want a lot of happy lenders, or just a few? SS will need them all if deal flow increases as they predict, so don't let the new boys and girls slip away.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on May 12, 2015 16:33:06 GMT
There were just over 200 investors who managed to initially invest in PBL032 which gives an average investment of £3,000 or 0.5% of the loan size. As clearly indicated in this thread, there were investors who did not get a chance to invest in this loan, through website error or simply because the timings didn't suit, so how do we know at what level to cap an investment at for the first 24 hours? If we capped it at £1,000 per investor and 300 investors invested, 50% of the loan would be filled and we would face the same feeding frenzy and investor disappointment at the 24 hours later point when everyone went back at the same time to top up their investments. At present investor demand is greater than loan supply, we believe that rather than add temporary investment caps, we should try to increase supply of good quality bridging loans that have the financial margin available to pay our investors the required 12%. An alternative option is to reduce the rate at which we offer for each loan until the supply/demand balance is levelled. Sorry but I don't agree. In your scenario, the feeding frenzy would come after all investors who wished to partake had got the opportunity to do so which seems like a fair compromise. : I agree with locutus. A delayed scrum after all lenders have had a chance to pick up at least a bit of a new loan would be much preferable to the PBL032 situation where many people who were poised at the website at the appointed time were unable to invest anything. (And I doubt that more bandwidth would have helped. Yes, it would have prevented the error messages and related frustration for some people, but it also would have meant the loan would have been completely funded even more quickly than six minutes.) The PBL032 experiment also shut out all investors who couldn't be logged into the website at exactly the right time, and I expect there were many of those. (I'm one of them.) With respect to the question of "how do we know at what level to cap an investment at for the first 24 hours?", I expect that a bit of experience is all that's necessary. Funding Secure have been imposing limits on their loans for a while now, and are getting very good at setting the limits at levels that make the investment opportunity last long enough that most investors who want to can get a part in the initial period -- except for their smallest loans -- and those who want more can pounce on the remainder at then end of the 24 hours. I'm sure SS could do as well if they put their mind to the task. I suppose a lot depends on whether SS want to broaden their investor base or reduce it to those with very deep pockets and the ability to make investments at a precise time. IMHO SS would be best prepared for their future of increased deal flow if they could build a very broad investor base. And since most investors would prefer to hold a diversified portfolio of loans, SS need to make it possible for them to do that. Loans that are available for just six minutes do not provide that opportunity.
|
|
|
|
Post by pepperpot on Sept 18, 2015 11:51:06 GMT
Pebble 32 just repaid.
Was patting myself on the back for being able to pick a bit up yesterday, ho hum... What are the chances something will draw this afternoon?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,322
Likes: 11,534
|
Post by ilmoro on Sept 18, 2015 12:09:50 GMT
Pebble 32 just repaid. Was patting myself on the back for being able to pick a bit up yesterday, ho hum... What are the chances something will draw this afternoon? Annoying, just got everything neat & tidy & fully invested again.  Has got PBL58 back to where it was 3 days ago, must be time for another load to get dumped back on market!
|
|
