spyrogyra
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Post by spyrogyra on Sept 21, 2015 22:31:59 GMT
As most of the active investors, I've sold more than 50% of my exposure and am patiently waiting to see what they have prepared up their sleeve. I always expect the unexpected from The Circus.
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Post by GSV3MIaC on Sept 22, 2015 8:04:36 GMT
Only option I can see, apart from dropping fixed rates, is to reinstate cashback on large loans. We shall see. Maybe they'll use WL or institutional or Investment trust cash?
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arbster
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Post by arbster on Sept 22, 2015 8:23:01 GMT
Only option I can see, apart from dropping fixed rates, is to reinstate cashback on large loans. We shall see. Maybe they'll use WL or institutional or Investment trust cash? At the Investor Evening they mentioned that they had "a number of levers" they can pull to help loans fill, but actually only mentioned cashback. They did confirm they would not arbitrarily change rates to do so. I'm not sure they can play fast and loose with the allocation of WL's - this is a randomised process - but maybe they're allowed to re-allocated to WL if it doesn't fill from retail investors. If that were the case, though, I'm not sure why they haven't previously done that with property loans that struggled. It really will be interesting to see what happens next week.
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jimbo
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Post by jimbo on Sept 22, 2015 9:03:37 GMT
Yup. I certainly won't be bidding.
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wysiati
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Post by wysiati on Sept 22, 2015 12:52:26 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??) Perhaps with this partly in mind FC has banned (and will remove) all Q&A relating to the switch to fixed rates, even where this relates to the business in terms of affordability etc.
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blender
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Post by blender on Sept 22, 2015 14:35:20 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??) Perhaps with this partly in mind FC has banned (and will remove) all Q&A relating to the switch to fixed rates, even where this relates to the business in terms of affordability etc. There are a few of these large A+ loans going through. Nothing to do with FC perhaps losing some of the fee on these on cash back from next week.
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markr
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Post by markr on Sept 23, 2015 12:07:28 GMT
I'm not sure why they haven't previously done that with property loans that struggled. Property loans have never featured as whole loans. Pure speculation, but I suspect difficulties with potential conflicts of interest. For example, many councils invest in WLs; imagine if a council who approved a "controversial" planning application was subsequently found to have lent council taxpayers money to the developers.
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nick
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Post by nick on Sept 24, 2015 9:06:23 GMT
I'm not sure why they haven't previously done that with property loans that struggled. Property loans have never featured as whole loans. Pure speculation, but I suspect difficulties with potential conflicts of interest. For example, many councils invest in WLs; imagine if a council who approved a "controversial" planning application was subsequently found to have lent council taxpayers money to the developers. I suspect property loans haven't placed in the WL market because the external market for these loans is already very large, liquid and mature and would be of limited interest to institutional investors who can easily source these loans more competitively in existing markets. This is not the case with SME loans.
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blender
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Post by blender on Sept 24, 2015 11:05:19 GMT
Property loans have never featured as whole loans. Pure speculation, but I suspect difficulties with potential conflicts of interest. For example, many councils invest in WLs; imagine if a council who approved a "controversial" planning application was subsequently found to have lent council taxpayers money to the developers. I suspect property loans haven't placed in the WL market because the external market for these loans is already very large, liquid and mature and would be of limited interest to institutional investors who can easily source these loans more competitively in existing markets. This is not the case with SME loans. Agreed. Also FC does not have a sufficient track record on the application of its assessment procedures to property loans, there may be some problem with the level of the 1% charge (do they add sufficient value?), and I would guess the whole loan investor-lenders might not be keen to pay FC all the interest and fees up front, increasing LTV, so that FC can pay it back to them monthly less fees, while the borrower has interest rolled up. I think they will create a property investment trust.
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Post by nickthefool on Sept 28, 2015 12:22:19 GMT
Would imagine FC are pretty pleased so far by the fixed rates launch...6 loans so far totalling approx £250k, A+ to B, and all filled or almost filled within a few hours.
Will be interesting to see a) how quickly they draw down and b) how larger loans fare.
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SteveT
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Post by SteveT on Sept 28, 2015 12:56:54 GMT
Would imagine FC are pretty pleased so far by the fixed rates launch...6 loans so far totalling approx £250k, A+ to B, and all filled or almost filled within a few hours. Will be interesting to see a) how quickly they draw down and b) how larger loans fare. And interesting to see what happens with these loans on the SM. Will many parts get listed, and at what sort of a premium?
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Post by nightmare on Sept 28, 2015 13:07:37 GMT
I see that 16070 did last long even at 17.7%
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markr
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Post by markr on Sept 28, 2015 13:25:04 GMT
I see that 16070 did last long even at 17.7% I happened to refresh the loan requests page when this one was only half full. I hovered over the bid button for a while, but decided against it. If the fixed rate loans end up stalling the secondary market, I don't mind taking my chances holding As and A+s to term, but not Es.
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arbster
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Post by arbster on Sept 28, 2015 14:06:14 GMT
I must admit to not finding any of the loans listed today particularly attractive at the rates offered, and in some cases I'd be looking for 2-3% more before I'd be willing to commit. They're not having any trouble filling them, though, probably because they're small. As others have said, it'll be interesting to see what happens when the £200k+ loans start coming through again. Strange that there's been no property loans at all.
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Post by nickthefool on Sept 28, 2015 14:11:28 GMT
Thinking about it some more, I guess the speed of drawdown shouldn't be much of an issue really. It's been a little annoying with the E loans especially in the past, because your money can be tied up for 2 weeks and end up not earning anything. But with the fixed rates, the borrower should (in theory) know the rate before the loan even hits the primary market, meaning that rejections should be a lot lower. Therefore, speed of drawdown is only important if you're trying to flip the loans, which I guess will not be very easy anyway with the fixed rates.
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