adrianc
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Post by adrianc on Aug 10, 2015 14:29:01 GMT
Following SS being the most popular destination for money this month over in this thread - p2pindependentforum.com/thread/2989/where-invest-most-money-august - I thought I'd have a little look, see what I'm missing out on. OK, so it's a fixed 12% return, with everything backed by good solid assets with good LTV - and a provision fund. Sounding good so far. But... Umm, why does it make a difference what my money actually goes towards? I don't quite get this bit... Is there any difference if my money's gone to that building or this building or that yacht? It doesn't affect my RoI, and it doesn't affect my security. So...? <scratches head> |
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webwiz
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Post by webwiz on Aug 10, 2015 14:35:22 GMT
They have not done any boats for a long time, it's all property now. Should be OK provided valuations are accurate, there is no fraud and property market does not collapse. There is a wall of money waiting for each loan so they are unlikely to be offering any referral bonuses just now, and you will have to be quick and lucky to get any of the next loan unless it is a real biggie. There will probably be no time to read the particulars let alone do any serious DD.
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SteveT
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Post by SteveT on Aug 10, 2015 14:40:52 GMT
Following SS being the most popular destination for money this month over in this thread - p2pindependentforum.com/thread/2989/where-invest-most-money-august - I thought I'd have a little look, see what I'm missing out on. OK, so it's a fixed 12% return, with everything backed by good solid assets with good LTV - and a provision fund. Sounding good so far. But... Umm, why does it make a difference what my money actually goes towards? I don't quite get this bit... Is there any difference if my money's gone to that building or this building or that yacht? It doesn't affect my RoI, and it doesn't affect my security. So...? <scratches head> (And if anybody's got a referral bonus, if such a thing exists, PM me a code. First come, first served, if I'm convinced) Likely within a matter of days / weeks (now long-awaited!), the ownership structure of the SS loan book is changing to a Trust structure, rather than all lending effectively being to Lendy Ltd. At this point the logic of diversifying one's holdings across multiple SS loans will be stronger, although it remains to be seen whether there will be changes to how the provision fund might be applied in cases of default.
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Post by nickthefool on Aug 10, 2015 14:47:58 GMT
Following SS being the most popular destination for money this month over in this thread - p2pindependentforum.com/thread/2989/where-invest-most-money-august - I thought I'd have a little look, see what I'm missing out on. OK, so it's a fixed 12% return, with everything backed by good solid assets with good LTV - and a provision fund. Sounding good so far. But... Umm, why does it make a difference what my money actually goes towards? I don't quite get this bit... Is there any difference if my money's gone to that building or this building or that yacht? It doesn't affect my RoI, and it doesn't affect my security. So...? <scratches head> (And if anybody's got a referral bonus, if such a thing exists, PM me a code. First come, first served, if I'm convinced) That's kind of my feelings too - we're effectively lending to the business of Lendy Ltd rather than the individual loans. However, if (hypothetically) a loan were to default and the security sale didn't cover the cost, and they decided not to use the provision fund (which is discretionary), then whoever has part of that loan will probably take the hit, if there is one. As mentioned above the trust structure will most likely make this arrangement more formal.
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adrianc
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Post by adrianc on Aug 10, 2015 21:23:12 GMT
OK, thanks. I can now see the point.
Which brings me to the next head-scratch... There's something on the table to put money into! Secondary parts of a few loans... But they're all imminent repayment or actively overdue, afaict. So, again, umm...?
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SteveT
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Post by SteveT on Aug 10, 2015 21:28:45 GMT
4a will continue as a new facility (merged with 4b) in September. 35 (now available) still has 9 months.
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adrianc
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Post by adrianc on Aug 10, 2015 21:50:16 GMT
Right, I see those ones as having parts for sale now.
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jonno
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nil satis nisi optimum
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Post by jonno on Aug 11, 2015 9:03:24 GMT
Just bear in mind that the introduction of the "Trust" structure is a double edged sword in that it may well make the secondary market less attractive/fluid, especially for those loans nearing maturity. At the moment investors will buy anything at any point in the maturity profile because the specific risk doesn't particularly lie with that loan. This will change post "Trust". However on balance I do see it's introduction as beneficial for the SS model.
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webwiz
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Post by webwiz on Aug 11, 2015 11:02:00 GMT
Just bear in mind that the introduction of the "Trust" structure is a double edged sword in that it may well make the secondary market less attractive/fluid, especially for those loans nearing maturity. At the moment investors will buy anything at any point in the maturity profile because the specific risk doesn't particularly lie with that loan. This will change post "Trust". However on balance I do see it's introduction as beneficial for the SS model. You might be right, but I have not seen anything definitive on this point, and as there has so far not been a loss we have not seen what the effect would be in practice.
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Post by goldservice on Sept 2, 2015 8:25:14 GMT
This seems to be the right place to ask some newbie Q's:
1 What does PBL stand for? Property bridging loan? What other types are there?
2 Is the SM not a separate market but simply those entires in the loans list where the 'available' column is > 0? And did I see a loan with a green background when it was > 0?
3 Why are some availables < 0?
4 Are there bots that take all the SM offerings as soon as they appear?
5 Should I diversify as on FC?
6 Is there a help/search option somewhere on the site?
Many thanks for the help.
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arbster
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Post by arbster on Sept 2, 2015 8:30:32 GMT
This seems to be the right place to ask some newbie Q's: 1 What does PBL stand for? Property bridging loan? What other types are there? 2 Is the SM not a separate market but simply those entires in the loans list where the 'available' column is > 0? And did I see a loan with a green background when it was > 0? 3 Why are some availables < 0? 4 Are there bots that take all the SM offerings as soon as they appear? 5 Should I diversify as on FC? 6 Is there a help/search option somewhere on the site? Many thanks for the help. Shh... don't tell him anything, and maybe he'll go somewhere else with all his money...
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arbster
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Post by arbster on Sept 2, 2015 8:33:31 GMT
1 What does PBL stand for? Property bridging loan? What other types are there?
Yep. Not many other types of loans recently, but repaid loans shows a lot of other asset types.
2 Is the SM not a separate market but simply those entires in the loans list where the 'available' column is > 0? And did I see a loan with a green background when it was > 0?
That's correct.
3 Why are some availables < 0?
It's a "feature".
4 Are there bots that take all the SM offerings as soon as they appear?
Not sure about bots, but nothing stays on the SM for long.
5 Should I diversify as on FC?
Advisable as they're likely to move to a trust model in due course, and lenders will be more exposed to the actual loans they're invested in.
6 Is there a help/search option somewhere on the site?
Not seen one.
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jonah
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Post by jonah on Sept 2, 2015 18:25:02 GMT
Re: diversification... See the other thread for the changes to model... This has moved this from a 'good idea' to a 'very,very good idea'
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sam i am
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Post by sam i am on Sept 2, 2015 20:25:47 GMT
This seems to be the right place to ask some newbie Q's: 1 What does PBL stand for? Property bridging loan? What other types are there? Yes, Property Bridging Loan. When SavingStream first started they offered loans backed by boats as the asset but now it is all property. 2 Is the SM not a separate market but simply those entires in the loans list where the 'available' column is > 0? And did I see a loan with a green background when it was > 0? Yes and Yes 3 Why are some availables < 0? This is an apparent glitch with the SS database. If two or more investors try to buy a piece of a loan at more or less the same time then all transactions may go through and reduce the availability below zero. Sometimes SS unwinds these additional amounts at a later stage if they haven't cleared through additional loan parts being put up for sale. And on a related note, if you do sell into negative availability the database usually has difficulty recognising the sale and you have to email SS to clear it. 4 Are there bots that take all the SM offerings as soon as they appear? A much debated point on this forum and difficult to determine. I don't use bots (nowhere near clever enough to know how) and have managed to pick up stuff on the SM through regular refreshing. I would presume if bots were prevalent then I would get nothing. 5 Should I diversify as on FC? Yes definitely, especially as a trust structure is imminent. 6 Is there a help/search option somewhere on the site? There is some info on the homepage: How it Works, FAQs, Risk Statement etc. note that some of this will change with the change to a trust structure. Many thanks for the help.
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