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Post by nickthefool on Aug 6, 2015 10:58:17 GMT
Taking a monthly average, for example, would solve the volatility problem for the most part. I think part of the problem with the volatility is caused by the new MR and YR setting. It is skews the rate towards the lower end of the days trading range. Prior to the change, it skewed it towards the upper end which obviously didn't suit RS. Although less than happy with the current situation, we have to live with it. The main thing I don't like is that todays MR offers feed into tomorrows calculation which because of the skewing, keeps rates lower. I think MR should only be calculated using manually placed offers (probably excluding YR offers too or at least those set over 7 days ago) as these are the only truly active offers as opposed to passive. You probably get issues with small volumes there though. I get the impression that RS would like people to just set their money to auto reinvest at MR and be done with it. I suspect a lot of people were happy doing this using the old YR as a safety net, however now you don't have the safety net it's a bit less tempting to just "set and forget". I suppose the alternative is to set a YR and leave it, but you'll undoubtedly lose out compared to the old YR funcitonality (either the MR being higher YR or your money not getting lent out is almost guaranteed to happen sometimes unless you check daily).
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spiral
Member of DD Central
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Post by spiral on Aug 6, 2015 18:37:26 GMT
You probably get issues with small volumes there though. I agree but at least it would be true rates based on what people had requested. The only problem I have with the current set up is it feels a little bit like Excels "circular reference" wherbey a result is used in the calculation of its own result which just doesn't sit right with me. I did point out a month or so ago that the biggest risk to MR was low volume as you will always get someone eager to lend their money at whatever rate and as this feeds into the daily average, it will drive rates down. For the first time since I joined RS, I'm now at a bit of a crossroads. I can live with the lower rates if they are genuinely what the majority of lenders want. What I'm less comfortable with is the current calculation which drives down rates and the passive just accept. It would be interesting to see how low rates would actually drop if RS's calculation for MR was yesterday's MR - 0.1. I suspect that when the figures became negative, there would still be enough lenders oblivious to the fact leaving their repayments recycling.
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jonah
Member of DD Central
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Post by jonah on Aug 6, 2015 20:00:11 GMT
It would be interesting to see how low rates would actually drop if RS's calculation for MR was yesterday's MR - 0.1. I suspect that when the figures became negative, there would still be enough lenders oblivious to the fact leaving their repayments recycling. Definitely not a boring, 'leave it alone' platform currently.
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Post by westonkevRS on Aug 6, 2015 20:02:07 GMT
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davex
Member of DD Central
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Post by davex on Aug 7, 2015 6:05:12 GMT
Have been lending on RS for almost a year, about 8K on yearly loans, with reinvestment turned on.
I like RS, i like getting a bit more than what the banks offer, and i feel my money is reasonably safe.
I like the fact that borrowers are not being screwed into the ground.
TBH if the rate moves by the odd 0.5% I don't care, it makes little difference, will keep with RS as a good safe option for some of my cash holdings.
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Post by Deleted on Aug 7, 2015 9:18:49 GMT
Not for much longer 
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sl75
Posts: 2,092
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Post by sl75 on Aug 7, 2015 9:46:38 GMT
And loving the tag, "Rate Setter the UKs largest peer-to-peer lender" based on 2015 lending volumes. Not for much longer Presumably they'll just need to start being more specific - e.g. "based on 2015 peer-to-peer lending volumes"?
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Post by closetotheedge on Aug 7, 2015 9:49:01 GMT
I have find this forum a great aid in my decision making process regarding investing via P2P platforms. Of all the contributors I find the seeming genuineness and candid nature of the posts from westonkev give me a degree more confidence in the RS platform. On the other hand I find the comments of contributors from other platforms sometimes too corporate or insignificant.
On the subject at hand, I find actual high street lending and saving rates more illustrative of the health of the economy and how my own finances are going to fair than the BoE base rate. For this reason the RS concept of a daily quoted rate which illustrates this seems not entirely fanciful. With the technical differences between the platforms though it may not be easy to choose which truly represents the cost to borrow.
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Post by Deleted on Aug 7, 2015 9:58:29 GMT
Context is everything.
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jonbvn
Member of DD Central
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Post by jonbvn on Aug 13, 2015 9:12:57 GMT
Not for much longer Presumably they'll just need to start being more specific - e.g. "based on 2015 peer-to-peer lending volumes"? Meow!!
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