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Post by GSV3MIaC on Nov 12, 2015 7:52:27 GMT
Last couple of years Xmas was short of borrower requests, plenty of lender money. Excellent time to sell slightly dented parts at siilly rates.
(I can only assume the more switched on P2P lenders are capable of figuring out what Xmas is going to cost them rather earlier in the year - probably 18 months in advance. 8>.)
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Post by goldservice on Nov 16, 2015 16:48:23 GMT
Why so many E loans recently?
HNW individual/Institutional investor: Hey, Freaky Credit, this three month-old risk band E whole loan you sold me is now crippled. It’s effectively worthless right now. I’m £50k down.
Flogging Crumbs: Don’t worry, just diversify. Buy lots of whole loans.
HNWi/II: And lose lots of big chunks?
FC: Don’t worry, your projected average return is 8%.
HNW etc: ONLY 8%?! I’m not buying any more of these.
So that’s why the number of Es on the PM has picked up recently.
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TitoPuente
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Post by TitoPuente on Nov 18, 2015 11:20:21 GMT
Is 14560 the first E-pop (or quasi-pop) ever?
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jamesc
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Post by jamesc on Nov 18, 2015 11:50:28 GMT
Yes it is and a WL reject but there are two other very late ones so may be joined soon.
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blender
Member of DD Central
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Post by blender on Nov 18, 2015 12:01:11 GMT
Sorry, don't understand these posts. According to the stats there are no E loans later than 30 days, and there is only one E whole loan which is late. So what is all this about E loans going pop? Agreed that a strategy of buying a large number of E whole loans to hold looks unattractive, but then HNW individuals may also be Casino customers.
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SteveT
Member of DD Central
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Post by SteveT on Nov 18, 2015 12:04:58 GMT
Sorry, don't understand these posts. According to the stats there are no E loans later than 30 days, and there is only one E whole loan which is late. So what is all this about E loans going pop? Agreed that a strategy of buying a large number of E whole loans to hold looks unattractive, but then HNW individuals may also be Casino customers. 14560 was made RBR on 5th Nov, and a further comment today says it will be "entering a form of insolvency". It is currently 19 days late on its 3rd payment.
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blender
Member of DD Central
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Post by blender on Nov 18, 2015 12:38:24 GMT
Sorry, don't understand these posts. According to the stats there are no E loans later than 30 days, and there is only one E whole loan which is late. So what is all this about E loans going pop? Agreed that a strategy of buying a large number of E whole loans to hold looks unattractive, but then HNW individuals may also be Casino customers. 14560 was made RBR on 5th Nov, and a further comment today says it will be "entering a form of insolvency". It is currently 19 days late on its 3rd payment. Thanks SteveT. That is bad news for the holders, but it is not visible to me and not yet defaulted on the loan book. I think holding an E for the third payment risky, unless well diversified. I lose mine before the second payment.
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SteveT
Member of DD Central
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Post by SteveT on Nov 18, 2015 12:41:49 GMT
14560 was made RBR on 5th Nov, and a further comment today says it will be "entering a form of insolvency". It is currently 19 days late on its 3rd payment. Thanks SteveT. That is bad news for the holders, but it is not visible to me and not yet defaulted on the loan book. I think holding an E for the third payment risky, unless well diversified. I lose mine before the second payment. I reckon holding them for the first payment is risky, the second is riskier and after that they go downhill fast.  But these days, it's a choice of buy a few dodgy Es from Fruity Chemicals or it's back to playing Russian Roulette on the railway tracks.
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blender
Member of DD Central
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Post by blender on Nov 18, 2015 14:14:05 GMT
Yes, I have just bought some 17420. Credit rating 90%! Not to be held when the second payment is due.
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Post by bonfemme on Nov 19, 2015 7:01:45 GMT
Thanks SteveT. That is bad news for the holders, but it is not visible to me and not yet defaulted on the loan book. I think holding an E for the third payment risky, unless well diversified. I lose mine before the second payment. I reckon holding them for the first payment is risky, the second is riskier and after that they go downhill fast. But these days, it's a choice of buy a few dodgy Es from Fruity Chemicals or it's back to playing Russian Roulette on the railway tracks. I agree with what you say but would add that, in my experience over the last six months, As and A+ loans are just as likely to go bad after the second or third repayment.
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Post by GSV3MIaC on Nov 19, 2015 11:12:44 GMT
Not 'quite' as likely maybe, but certainly not worthy of the 2x difference in interest rates.
FWIW there is currently a glut of Es at no premium on the market .. and the large E (17059), having sat around for 2 weeks, went down today with the comment "Please Note: The borrower is not yet in a position to accept the funds from Funding Circle and has thus rejected the offer" .. so WFT were they wasting our time and money applying for it for?
What's to love (apart from the 17%+ rates on the few that make it). 8>.
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blender
Member of DD Central
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Post by blender on Nov 19, 2015 11:19:19 GMT
This morning I saw the FC TV ad for the first time - aimed at SMEs. Then noticed it was on the 'Horror' channel; looking for E band borrowers, presumably.
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SteveT
Member of DD Central
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Post by SteveT on Nov 19, 2015 13:12:41 GMT
Not 'quite' as likely maybe, but certainly not worthy of the 2x difference in interest rates. FWIW there is currently a glut of Es at no premium on the market .. and the large E (17059), having sat around for 2 weeks, went down today with the comment "Please Note: The borrower is not yet in a position to accept the funds from Funding Circle and has thus rejected the offer" .. so WFT were they wasting our time and money applying for it for? What's to love (apart from the 17%+ rates on the few that make it). 8>. I've given up even responding to the E-alert thread. If they're small, they're gone. If they're big, they'll still be there. And it's 50/50 as to whether they ever draw down. Recently I've bought almost all my Es from the dodgy dealers down the (secondary) market. Their merchandise gives an instant hit and "street value" is often only 0.3%/0.4% mark-up (which is cheaper than 7 days hanging around waiting on the PM).
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pa
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Post by pa on Nov 20, 2015 18:37:43 GMT
17157 fallen through -- "The borrowers circumstances have since changed. FC" in the 10 days since the loan was listed apparently.
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Post by bracknellboy on Nov 28, 2015 16:28:12 GMT
Please note: I have moved the Sgt P-to-P'ers stuff onto two threads in Chat. One thread is mikeb's cover and naming plaque only, and ius there as a sticky, the other thread is for the various chats etc. Clearly some of the subsequent chat might feel a bit out of context but this felt like the right way to handle. mikeb: if you want to add anything to the sticky thread let me know/feel free, but otherwise I'm inclined to lock the thread for posterity. |
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