markr
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Post by markr on Jul 8, 2015 14:10:52 GMT
I am all for a W band, as in W**ga. MBR would be 2,375.3% Is there any P2P platform doing payday? There used to be, piggy-bank.co.uk started off as a P2P payday lender. I think the FCA regulation was more trouble than it was worth and they pulled out.
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SteveT
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Post by SteveT on Jul 10, 2015 9:35:50 GMT
A new E, going fast ...
... Gone in 5 mins
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fasty
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Post by fasty on Jul 10, 2015 11:45:06 GMT
A new E, going fast ... ... Gone in 5 mins Yep, in fact two launched this morning. I went to pour a cup of tea and missed the first completely. Managed to get a few crumbs of the second one.
Now that a few of these have actually drawn down (slightly to my surprise), I'm pondering how long I dare hang on to them before they turn toxic! Will the 6-month rule still apply?
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blender
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Post by blender on Jul 10, 2015 12:13:45 GMT
No, the six month's rule does not apply. For me the holding time is band sensitive, and I hold A+ and some As past that, and even secured Bs. When the C- started I held up to the third repayment and that seemed to work safely (excepting those which stealthily crept under the assessment fences). On E I have not decided whether to trust just the first repayment or also the second for good looking borrowers. Of course 'credit events' are a problem, and then you are stuffed.
One thing to note is that the whole loan lenders are not joining in at present. Of the 14 in the loan book none has been offered as a Whole Loan, all straight to partial. Clearly the 'random loan allocator' has not been told about the E band, and we have not been told that the Whole Loan buyers have not been presented with E loans to consider. Perhaps for good reason and they will be in later (no established average rate, or a wish to thwart the flippers with volume on the partial board). Perhaps they have all expressed a wish not to touch the E loans, at least until the guinea pigs have been seen to survive.
Whatever the reason and whatever the intentions, our good friends at Fingers Crossed are hoping they can get away with saying nothing.
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fasty
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Post by fasty on Jul 10, 2015 12:30:52 GMT
Agreed. I rarely dispose of low-risk-band loans early, and I've even kept a few D band indefinitely where I happened to like the organisation. At the moment, I'm feeling like the E band loans will require more careful consideration and some may have to be re-homed quite speedily. At least the rates are so high, the 0.25% sales fee to trade-'em-in looks small in comparison.
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SteveT
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Post by SteveT on Jul 10, 2015 12:42:51 GMT
Agreed. I rarely dispose of low-risk-band loans early, and I've even kept a few D band indefinitely where I happened to like the organisation. At the moment, I'm feeling like the E band loans will require more careful consideration and some may have to be re-homed quite speedily. At least the rates are so high, the 0.25% sales fee to trade-'em-in looks small in comparison. I'm buying a modest sum (in those that I spot in time) that I'm happy to hold for a while. Whether that's 2 months, 3 months or my regular 6 months remains to be decided and probably depends what happens to new E band listings over time. If Fantasy Computations decide to reduce the MBR (although I'd much prefer they raise the maximum bid rate for D band loans instead) then 18.2% is going to look pretty good and sell like hot cakes on the SM.
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TitoPuente
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Post by TitoPuente on Jul 10, 2015 13:48:04 GMT
14141 went in what? 45 seconds?
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SteveT
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Post by SteveT on Jul 10, 2015 15:10:25 GMT
New £40k E loan
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Post by GSV3MIaC on Jul 13, 2015 12:39:39 GMT
Since the WL rate is, iirc, supposed to be set by the average of the last N (undisclosed number?) of PL loans in the same risk band, I guess FC CAN'T offer E-rated WLs until there have been a number which have gone through auction? (Although as any Funny Clown can see, the answer is going to be "18.2%").
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Post by GSV3MIaC on Jul 13, 2015 13:53:36 GMT
Yep, '2 weeks' would work. In which case E-rated WLs should hit the streets next week?
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blender
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Post by blender on Jul 13, 2015 15:29:10 GMT
I think it a bit too early to ask FC about this because GSV is right about the time to establish the average interest rate (and I think also right about 18.2%). However, Finessed Circumlocutions has answered the question why WL lenders have not taken E loans. The question to be answered, in due course, is why none have been offered by the random process - assuming they are not.
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TitoPuente
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Post by TitoPuente on Jul 13, 2015 16:34:08 GMT
Is it my impression or there has been an increasing early closing activity lately?
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Post by GSV3MIaC on Jul 13, 2015 17:26:20 GMT
I don't think there has been any =significant= change, at least not in the loans I'm bothering to look at. There was 14124 (? an A+ iirc) which closed early, but then re-opened. There have been a couple in the last 2 weeks maybe, but then there have been lots of loans, so the percentage remains small.
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Post by goldservice on Jul 13, 2015 17:34:59 GMT
fwiw 14097A closed three days early this afternoon; marginal rate = 11.0%
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SteveT
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Post by SteveT on Jul 13, 2015 17:49:53 GMT
I've picked up small bits in 7 early closers over the last week, before they dropped below my personal "No longer interested" threshold of around 8.5% net (13981, 14033, 14025, 14089, 14135, 14098
and 14059). Only 13981 was notable in terms of closing rate (some 14.9% bids still in, although mine was a good bit lower since it was B rated). That's maybe a little above average but I don't think it's unusually high versus the number of auctions listed in recent days.
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