voss
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Post by voss on Feb 7, 2017 14:00:31 GMT
From Flaky Cod 10/10/16: "Please always assured [sic] that an even balance of whole loans and partial loans are [sic] distributed throughout the history of FC, you can see this in our loan book historically. You will also be able to see this in the weekly lending review that we send, which continues to show an equal distribution.
Please be assured that in answer to your questions, Funding Circle has not changed it's [sic] policy, the randomised assignment to whole and partial loans is still in place and the FAQ's [sic] remain correct."
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r00lish67
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Post by r00lish67 on Feb 7, 2017 14:22:07 GMT
Allocation of individual loans between WL and PL is random, but the odds of each outcome are not the same and are controlled by FC (it looks like they must currently be set at around 80% WL / 20% PL). Think of it like flipping a 10-sided coin where 8 sides say WL and only 2 sides say PL. Ah, I hadn't appreciated that, that makes sense, thanks. voss, re: your point, I had a peek at the last 3 months across all of the risk bands and it looks like we're only currently being allocated about 45% of loans (depending whether you measure by number of loans or value) versus the WL crew, so not sure how that sits with what Flipping Coins has told you. For what it's worth (from my highly in-depth 10 minute analysis on pivot tables  ) the PL marketplace appears to be currently geared to receive noticeably less E's (20% by number, although 35% by value) , but goes 50/50 with A+'s, with the rest hovering around 43%.
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blender
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Post by blender on Feb 7, 2017 14:31:13 GMT
For a few months there have been almost no property development whole loans. Does that continue? It affects the balance among bands.
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r00lish67
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Post by r00lish67 on Feb 7, 2017 14:48:42 GMT
For a few months there have been almost no property development whole loans. Does that continue? It affects the balance between bands. Right up until yesterday it does, and then 32203 went to WL. I can't immediately see anything unusual about it, a £177k 18-month 8% er.
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voss
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Post by voss on Feb 7, 2017 15:18:09 GMT
Just glancing through the latest loans on the loanbook, it looks like we've had vanishingly few E rated loans dispensed onto the marketplace recently. In fact, of the last 85 E's (roughly since the higher rates started), only 17 by my count of those went to the partial marketplace with the rest being whole loans. As far as I understand it, loans are allocated at random to be either Whole or Partial loans, and over the long run one would expect there to be more partials given that we have the concept of WL rejects coming onto the PL marketplace and not vice versa. Granted this is far from the long run, but 17/85 i.e. only 20% of E's are PL's at the moment, seems a tad unbalanced, no? @gsv3miac, flagging you as you tend to know the answer to such things Edit: It looks like the all-time PL/WL split for E rated risk loans is approximately 37% PL / 63% WL (183/314). Still not particularly balanced, so I'm wondering if my 'random' assumption just isn't correct? They heard you - half an hour ago: 32281 E but only £10,600.
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metoo
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Post by metoo on Feb 7, 2017 15:24:04 GMT
For a few months there have been almost no property development whole loans. Does that continue? It affects the balance between bands. Right up until yesterday it does, and then 32203 went to WL. I can't immediately see anything unusual about it, a £177k 18-month 8% er. 31862 (property) went to WL too. 10% B.
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blender
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Post by blender on Feb 7, 2017 17:00:04 GMT
Right up until yesterday it does, and then 32203 went to WL. I can't immediately see anything unusual about it, a £177k 18-month 8% er. 31862 (property) went to WL too. 10% B. Aha! Maybe this rebanding of property loans is related to the trust's portfolio policy.
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metoo
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Post by metoo on Feb 7, 2017 18:21:19 GMT
31862 (property) went to WL too. 10% B. Aha! Maybe this rebanding of property loans is related to the trust's portfolio policy. I tend to think they are just preparing for a potential downturn in property prices to avoid being 'caught without swimming trunks'. However we will need to see how they use the risk bands. They still need to get high LTV refinances lent.
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blender
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Post by blender on Feb 7, 2017 19:41:12 GMT
Aha! Maybe this rebanding of property loans is related to the trust's portfolio policy. I tend to think they are just preparing for a potential downturn in property prices to avoid being 'caught without swimming trunks'. However we will need to see how they use the risk bands. They still need to get high LTV refinances lent. Oh yes, agreed. But the needs of the trust could also be relevant. More property loans at 10% + sounds good to me. B*gg*r the banding and LTV, as long as they sell at par. Swimming trunks? Easier just to change colour.
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) the PL marketplace appears to be currently geared to receive noticeably less E's (20% by number, although 35% by value) , but goes 50/50 with A+'s, with the rest hovering around 43%.
