am
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Post by am on Sept 16, 2015 15:23:42 GMT
One possible source of purchasers for old low-interest loans is people trying to diversify a small investment - if you've only got £1500 in total invested, or only £15 in cash, the only eligible purchases for autobid will be aged loans. I assume that's why I've just sold off a 7% A(+?) loan.
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Post by nickthefool on Sept 16, 2015 15:28:39 GMT
I don't think Autobid will be bidding at lower than the rate you've set - I read it as FC just trying to clarify (badly...) that Autobid will bid at the fixed rates rather than the rate you selected in Autobid. ie if you've selected 7.5% for A+ loans, then it will bid 8% if that is the fixed rate for a particular A+ loan, but it won't bid on a 6%. That's certainly not what it says! "Autobid will automatically lend at the new fixed interest rates for all new loans listed on the marketplace, and the interest rates you currently have saved in your Autobid settings will only apply for buying loan parts on the secondary market." It's certainly possible (probable even, given that I'm clearly in the minority) that I've interpreted it wrongly, but I'd be highly annoyed if I had Autobid set up to bid on each risk band to get 7% net (for example), and it then started bidding on 6% gross loans without any input from me. Surely that wouldn't be allowed?
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Post by davee39 on Sept 17, 2015 9:36:06 GMT
So far no one has picked up on the potential for large SME loans (> £250k).
These offer the best rates at auction, but are not attractive to borrowers because the rates can end up too high.
A £500k fixed loan could get away at the new rates with 2% cashback allowing FC to make larger fees for less work than lots of smaller loans.
There may even be a return of the large asset backed lease financing style loans.
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Post by GSV3MIaC on Sept 17, 2015 9:43:32 GMT
2% over 5 years is not very exciting, even assuming FC offer it again.
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arbster
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Post by arbster on Sept 17, 2015 11:01:34 GMT
2% over 5 years is not very exciting, even assuming FC offer it again. Surely you could strip the CB and sell to the autobidders that missed out due to the 65% cap, just like property loans?
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Post by nickthefool on Sept 17, 2015 14:37:02 GMT
Thanks for getting the clarification.
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blender
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Post by blender on Sept 17, 2015 14:59:04 GMT
Yes thank you.
One of the consequences not yet discussed - I think- is that it will be possible to use Autobid on the PM only, by wanging up the buyer rates required on the SM - rates which are ignored on the PM. From an Autobidder's viewpoint this is good, avoiding exposure to toxic dumps. But from a seller's viewpoint there is good news and bad news.
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Post by GSV3MIaC on Sept 17, 2015 17:20:43 GMT
Good point, but one most grannies won't spot.
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fasty
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Post by fasty on Sept 18, 2015 18:35:11 GMT
I see that it now appears to be possible to sell loan parts at discount up to -20%, and also search for loan parts in the SM with similar discounts. Does the planned downtime this weekend indicate testing with view to roll-out of the new regime on Monday, perhaps?
Edit: I see it's now planned from w/c Monday 28th September
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SteveT
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Post by SteveT on Sept 21, 2015 16:46:50 GMT
So the £260,420 question is "Will 15709 accept 9.6% this week when, in theory at least, next week they could have 8.0%?" (and, if so, why??)
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arbster
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Post by arbster on Sept 21, 2015 16:49:42 GMT
So the £260,420 question is "Will 15709 accept 9.6% this week when, in theory at least, next week they could have 8.0%?" (and, if so, why??) I'd be very surprised if they did. However, they may be one step removed from the platform and have an unscrupulous introducer who just wants his commission. Or they might be desperate for the money, in which case I hope they don't accept it...
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Post by GSV3MIaC on Sept 21, 2015 16:55:35 GMT
And what guarantee is there they could actually get it at 8% next week - yeah they could list the loan, and MAYBE, 7 or 14 days later, it'd be 100% filled. Or maybe not. 8>.
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SteveT
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Post by SteveT on Sept 21, 2015 17:00:07 GMT
And what guarantee is there they could actually get it at 8% next week - yeah they could list the loan, and MAYBE, 7 or 14 days later, it'd be 100% filled. Or maybe not. 8>. Indeed, a little like the £200k loan on ReBS that everyone's avoiding in the knowledge it will never fill. I can't wait to watch what happens when they pull the lever ...
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spyrogyra
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Post by spyrogyra on Sept 21, 2015 17:54:02 GMT
I'll be greatly surprised if they haven't thought about fulfilling all loan requests. It will be disastrous.
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Post by GSV3MIaC on Sept 21, 2015 20:08:37 GMT
Yep it will. I doubt they can even get 65% of £260k from autobidders, so they'd probably need £100-150k or so from manual bidders who think '8%'* is the way to go. I would not be among that number .. how about you?
* less fee, less bad debts, re-compounded to annualise it and make it look better, but it really doesn't. 8>.
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