am
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Post by am on Sept 4, 2015 14:03:56 GMT
Spot on am, or should it be pm now. If the stock market falls much further I might have to change it to fm.
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blender
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Post by blender on Sept 4, 2015 14:15:23 GMT
Spot on am, or should it be pm now. If the stock market falls much further I might have to change it to fm. With some asterisks if it happens, please. My exposure to equities is very limited. To risky and unpredictable.
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Post by yorkshireman on Sept 4, 2015 15:02:36 GMT
My exposure to equities is very limited. To risky and unpredictable. In that case, I would have thought that you would have felt the same about Financial Cowboys’ unsecured loans. 
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SteveT
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Post by SteveT on Sept 5, 2015 8:36:53 GMT
Because their reference point is earning 1% in a deposit account and they know no better. Just tick Autobid and leave Failing Chumps to invest your money unwisely. They are banking on autobid filling entire loans, but this is to be seen. Autobid seems to get to a saturation point. Who would chip in after? At 6% clearly no one of the 29%. Would they increase the rate? Would they offer CBs? Would they do tranches? Maybe they believe that they will be able to scale up the lending base to a level where Autobid is sufficient to keep the show going. But this is not the case today or next month. I reckon the missing piece in the liquidity jigsaw will be the already-trailed "Flattens Competitors Investment Trust" (the launch timing surely isn't coincidental and presumably is intended to steal a march on next April's IffyISA bonanza). A heavily promoted IPO projecting 6%+ yield could easily raise £100m+. Rather than investing this via Whole Loans, they could simply take 20 - 25% of every new auction into the IT, just as the BBB takes 10% currently. They could even let the IT act as back-up underwriter for the larger loans, as FCPF does currently for some of the under-subscribed property tranches, either holding onto the enlarged stakes or releasing them onto the SM later at the Directors' discretion. Either way, I'm not that hopeful of a new opportunity emerging to flip larger SME loans for CB (or even for CB to continue much longer on property loans).
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jonah
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Post by jonah on Sept 5, 2015 9:15:42 GMT
On that thought... Has anyone seen the likely launch date of that trust?
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mv
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Post by mv on Sept 5, 2015 14:57:51 GMT
Imagine if you could sell currently held loan parts on to people opening a new FC ISA. A wall of money arrives overnight and every 8% property loan part you've been trying to flip at par for months gets snapped up  |
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agent69
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Post by agent69 on Sept 5, 2015 15:46:40 GMT
Imagine if you could sell currently held loan parts on to people opening a new FC ISA. A wall of money arrives overnight and every 8% property loan part you've been trying to flip at par for months gets snapped up Dream on
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blender
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Post by blender on Sept 5, 2015 18:10:50 GMT
My exposure to equities is very limited. To risky and unpredictable. In that case, I would have thought that you would have felt the same about Financial Cowboys’ unsecured loans. Yes, my holdings are all secured, though the unsecured are good for a few months. With business loans they tend to be independent of one another and they default separately - no common mode factors (eg China or Greece) which tends to affect all equities and means that you have to be able to hold for much longer. There are always some loans which can be sold when needed.
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Post by bonfemme on Sept 7, 2015 9:45:21 GMT
Well, Samir has finally come out of hiding and posted a comment on the FC forum. Nothing new exactly.
Dear All,
I have been reading this thread and the others since the announcement, and I wanted to take the opportunity to reiterate that we really do value all of your comments.
I set out the reasons for why we're making this change in my letter, but I wanted to add that we believe Funding Circle should be simpler and less time intensive to use, and there should be more lending opportunities. By moving to fixed interest rates, we expect to deliver on all of these.
This is not a decision we have taken lightly. The majority of our global business now operates with fixed interest rate loans. Our US business, whole loan marketplace, asset finance and property loans all have fixed interest rates. By moving to fixed rates for all loans we better align ourselves with the rest of our business.
I've spoken personally to a number of different investors over the last few days. Whilst it's clear there is some negative feedback, there are also a number of investors who have told me they welcome this change.
I know some people on this thread have said they will leave as a result of this news. I understand if you want to, but I hope you stick with us. We have been discussing and reviewing this for more than nine months and strongly feel this is the best option in aggregate for the investors, borrowers and the business. In my role I unfortunately can't make everyone happy, but I have tried to make the best overall decision for the widest group of constituents with the best intentions.
We have done a lot of work, but will only understand the full implications of these changes once we fully launch, so I also ask you to be patient with us as this is a large change to our operations and business.
I will continue to read this thread and others, but will leave it to David to respond to individual points. I will be on the webinars and be at the scheduled investor evenings.
Samir
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registerme
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Post by registerme on Sept 7, 2015 11:22:37 GMT
If FC has been "discussing and reviewing this for more than nine months" I wonder whether it has been discussed and reviewed with any investors, and whether or not any mention of it was made at the July investor conference?
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oldgrumpy
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Post by oldgrumpy on Sept 7, 2015 11:36:52 GMT
"I will be on the webinars"
Is that where Samir spends his time?
Oh, sorry. I thought it said, "I will be in the winebars."
Should've gone to pecssavres! 
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oldgrumpy
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Post by oldgrumpy on Sept 7, 2015 16:49:46 GMT
15 of the last 16 loans are A or A+. The other is a B, and an interesting D was pulled today (due to finish tomorrow) and will be re-listed (I think FC omitted to say it would partly repay an earlier loan).
I wonder if fixed rate launch of a lot of B,C,D, loans is closer than we suspect.
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jonah
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Post by jonah on Sept 7, 2015 19:32:12 GMT
When is the meeting? Surely it can't be before then. Oh wait.... I forgot which company this board was for. |
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Post by Deleted on Sept 7, 2015 20:28:32 GMT
Two things for Samir
1). I think you are undercharging for the risk, your A+ are not worth 7 percent net and that reminds me too much of 2007 debt crisis, yes you get the loan, no the risk is not valued in
2) your A+ should be at 10 percent minimum
That is why I will draw down, Fc has become too dangerous, making the deal easier is not the point, recognising the full risk is the point.
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Post by nickthefool on Sept 8, 2015 9:00:29 GMT
I've sold 5 parts at a discount this morning, from 3 different property loans. Not conclusive in itself but I wonder if autobid might have started buying discounted parts?
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