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Post by cautious on May 15, 2015 15:04:41 GMT
If I'm reading it correctly, my Zopa dashboard says: £448k available to lend in the longer market, with £1.08m being lent per day.....
so soon no funds will be available.
What happens now  ?
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Post by elljay on May 15, 2015 15:40:35 GMT
PANIIIIC!  |
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bugs4me
Member of DD Central
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Post by bugs4me on May 15, 2015 17:11:20 GMT
If I'm reading it correctly, my Zopa dashboard says: £448k available to lend in the longer market, with £1.08m being lent per day.....
so soon no funds will be available.
What happens now ? Not sure of the percentages if there are any available as been a while since I've been on the Z forum but - I expect a certain amount of that £1.08m per day will be institutional money. Maybe elljay is more in the know? I'm not surprised though at the amount of retail funds available as I suspect many lenders/investors may have been gradually withdrawing from Z - that is just a guess on my part though. Another elljay question perhaps?
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Post by elljay on May 16, 2015 6:46:19 GMT
Pass... Not up to speed enough with Zopa nowadays. Maybe @zopamat is lurking nearby?
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Post by westonkevRS on May 16, 2015 17:35:09 GMT
Pass... Not up to speed enough with Zopa nowadays. Maybe @zopamat is lurking nearby? Nah, @zopamat only posts on the RateSetter thread....
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james
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Post by james on May 17, 2015 1:33:28 GMT
If I'm reading it correctly, my Zopa dashboard says: £448k available to lend in the longer market, with £1.08m being lent per day..... ... so soon no funds will be available. ... What happens now ? In theory rates go up until they are high enough to tempt retail lenders. In practice? I suppose Zopa will use institutional money to avoid substantial rate increases. Thereby demonstrating that past statements about institutional not affecting retail are false. Though I think that claim has already been shown to be incorrect when if I recall correctly they disclosed that institutional money would be used after retail was exhausted on a day. Though they might have changed practice since the claims and just not posted an update now institutional does seem to be used to suppress retail rates by meeting borrower demand.
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Post by Deleted on May 17, 2015 9:58:01 GMT
We've been matching retail funds faster than expected due to increasing borrowing demand. Meaning that we have been able to match consumer money both repayments and new funds typically within 24 hours specifically in our longer market. To meet the increase in borrowing demand, institutional funds are being lent to meet the additional loan demand until new repayments or new money is added as our consumer lenders will be prioritised over institutional lenders. If we have more retail funds then we ensure that this gets lent as a priority. Once we have cleared the retail funds then we increase the institutional level of funding to be able to ensure our borrowers get a loan in a quick time.
Put simply the queue to lend is much quicker now than it has been for a long time so retail funds are being matched faster than most lenders expect.
Mat
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james
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Post by james on May 19, 2015 5:11:13 GMT
Zopamat, thanks for being explicit about the use of institutional money, if not about the corollary that it keeps interest rates down for retail lenders. Losing the increase that would otherwise encourage a reduced outflow and increased inflow to Zopa from us. Still, it keeps fee and charge revenue up for Zopa by keeping borrower rates down and as long as the institutional money there Zopa doesn't lose out immediately, I suppose. The unfortunate joys of conflicts of interest between platforms and lenders when the platform sets the rates, not the lenders.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on May 19, 2015 8:27:50 GMT
5 year non-institutional funds paying lenders 5% are probably mediocre for Zopa because many more people prefer continued quicker lending on RS at 6.0-6.8% despite the slightly different borrowing clientele. Lenders may or may not know that some business borrowers are involved, but RS still has the appearance of a fairly safe place. I think that is how it will stay, unless RS's publicity campaign brings its rates down due to huge cash inflow.
On a slightly different note, I find it quite amazing that Zopa now reports each week that it nearly always equals or slightly beats its "projected" rates of interest, whereas before I started gradual withdrawal in 2013, actual rates never did, often falling far short (Rate promise top-ups did compensate after I stopped lending).
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