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Post by aloanatlast on Oct 9, 2015 13:17:01 GMT
And another reject is offered for your delectation. But no sign of Botzinga. Has it got picky, or does it only buy Es now, or has it retired?
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bigfoot12
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Post by bigfoot12 on Oct 9, 2015 13:30:53 GMT
(I suspect the new loans tap may be turned firmly towards OFF this afternoon) Sorry for pestering you all, I'm new (in hours of actual experience) to FC. Is that how it works? They aren't going to endear themselves to those of us trying to deploy money if that's how it works. Looking at the blog and the statistics pages I had expected about 10-15 loans per day. But yesterday and today it is a bit like AC! And another reject is offered for your delectation. But no sign of Botzinga. Has it got picky, or does it only buy Es now, or has it retired?
Are we sure that loans in the early afternoon are WL rejects?
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arbster
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Post by arbster on Oct 9, 2015 13:32:45 GMT
Are we sure that loans in the early afternoon are WL rejects? The clue on this one is an out of sequence loan number.
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bigfoot12
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Post by bigfoot12 on Oct 9, 2015 13:36:09 GMT
Are we sure that loans in the early afternoon are WL rejects? The clue on this one is an out of sequence loan number. Ah, thanks.
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SteveT
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Post by SteveT on Oct 9, 2015 14:17:06 GMT
(I suspect the new loans tap may be turned firmly towards OFF this afternoon) Sorry for pestering you all, I'm new (in hours of actual experience) to FC. Is that how it works? They aren't going to endear themselves to those of us trying to deploy money if that's how it works. Looking at the blog and the statistics pages I had expected about 10-15 loans per day. But yesterday and today it is a bit like AC! Traditionally Fridays' Crumbs have tended to be feast or famine, although the famine has been more or less continuous in recent weeks
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Post by aloanatlast on Oct 9, 2015 15:26:13 GMT
Traditionally Fridays' Crumbs have tended to be feast or famine, although the famine has been more or less continuous in recent weeks Traditionally, a slow-filling loan only meant a last-minute feeding frenzy in the auction room. But tradition is dead. Fried Cabbage now have to be much more careful how they feed the autobidder. The policy of new offers going in at the front of the queue could easily result in the offers pushed back then failing to fill as a result. They may have to switch to a first-come first-served filling queue like at Zopa. In fact there no longer seems to be any advantage in doing it any other way. The main purpose and effect of the old policy was possibly to reduce the interest rate swing between small and large loans.
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Post by aloanatlast on Oct 10, 2015 2:42:32 GMT
Looks like Autobid kicked in again an hour or so ago on 16308, which seems odd since it shut down 2 days ago, presumably on hitting the self-imposed 65% limit. Now, Fiddling Clauses wouldn't be bending their own rules, would they ....? If they've hit the 65% limit they're in trouble. But the rush of new loans on Wednesday would have pushed this one well down the Autobid filling queue, even though it was still the most desperately needy.
What we learn is that there isn't much manual bidding after the initial rush. Also, few Autobid users have enough money at any time to reach back to a loan that may be sitting 8th in the queue. Even though a couple of property tranches have been paid off.
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min
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Post by min on Oct 10, 2015 8:44:04 GMT
Looks like Autobid kicked in again an hour or so ago on 16308, which seems odd since it shut down 2 days ago, presumably on hitting the self-imposed 65% limit. Now, Fiddling Clauses wouldn't be bending their own rules, would they ....? If they've hit the 65% limit they're in trouble. But the rush of new loans on Wednesday would have pushed this one well down the Autobid filling queue, even though it was still the most desperately needy.
What we learn is that there isn't much manual bidding after the initial rush. Also, few Autobid users have enough money at any time to reach back to a loan that may be sitting 8th in the queue. Even though a couple of property tranches have been paid off.
I think we can expect to see the Autobodge limit raised to 75% or even 85% sooner rather than later.
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adrianc
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Post by adrianc on Oct 10, 2015 8:52:47 GMT
I think we can expect to see the Autobodge limit raised to 75% or even 85% sooner rather than later. You think they'll stop there?
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Post by aloanatlast on Oct 10, 2015 9:44:01 GMT
There doesn't seem much point in having a limit now. If there ever was.
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nick
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Post by nick on Oct 10, 2015 11:44:36 GMT
It is clear that FC are transitioning away from retail investors to institutional money. This makes commercial sense for them given the much lower cost base to service dozens of institutional investors versus the tens of thousands of small retail customers and the stresses that creates on their IT and customer interface resources/staff. Also, the bottleneck in their growth is generally the supply of loans rather than lack of investor money, although the two are related with larger amounts of money on the platform allowing a more competitive rates to be offered to borrowers. This trend is only likely to continue as more P2P investment trusts are set-up and the likely flow of most ISA money through these collective investment vehicles, including FC's own investment trust (assuming they ever get round to launching it). It's unfortunate for us, but I understand why they have to go down this route - they are currently only just about break even after 5 years of operation.
The thing I dread is the day FC announce that they are closing down the SM. I'm sure this somewhere down the pipeline as it solely benefits retail investor liquidity. When the day comes, I just hope we provided sufficient notice to manage the liquidity in our loan book, ie give us 12 months or more notice.
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arbster
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Post by arbster on Oct 10, 2015 12:01:42 GMT
Once again, they told me at the Investor Evening that they were committed to retail investors. After all, they're a P2P lending site, and if they simply become an alternative way of lending institutional money to SMEs they'll lose a bit of their USP. However, as with Zopa, making the whole process a lot more opaque does make their business easier to run and more predictable.
The real indicator will be how they set up their next new business, in Central Europe. It'll undoubtedly be all fixed-rate, but if it's also 100% Autobid and no SM, then the writing will definitely be on the wall.
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min
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Post by min on Oct 10, 2015 12:35:19 GMT
I think we can expect to see the Autobodge limit raised to 75% or even 85% sooner rather than later. You think they'll stop there? No I don't think they'll stop there but I think they'll increase it in stages. Say to 85% in the next week and then if some big loans struggle to fill the they'll go to 95%. I expect they will go to 100% eventually but suspect it might take a few months. It does depend on how many manual buyers there are and as a fair number appear to be winding down and heading for the exit they may decide that the small number that remain can be persuaded to use Autobodge.
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adrianc
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Post by adrianc on Oct 10, 2015 12:37:43 GMT
Once again, they told me at the Investor Evening that they were committed to retail investors. They've also told us, repeatedly, that the change to fixed rates is a good thing, and that the guarantees they take from borrowers are adequate security for the loans.
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min
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Post by min on Oct 10, 2015 12:38:57 GMT
Once again, they told me at the Investor Evening that they were committed to retail investors. But did they say retail investors who like to do due diligence and ask questions? I suspect they much prefer autobiddies who put their hard earned dosh in and check on it every few weeks or months.
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