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Post by easteregg on Sept 2, 2015 11:17:51 GMT
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Post by Deleted on Sept 2, 2015 11:26:01 GMT
Well the net rate they are proposing is 7%. I'm achieving 9.5% net with the buy and hold model and higher rates with other portals. Not sure why they think 7% is good enough. Here come the institutions I guess. If they dropped their management fee to say 0.25% that would make it 7.75%. So even then they still are falling short of the benefits of the old model. Not sure why lenders have to take a cut while management don't...... Frustrated and will move money slowly elsewhere. Still a few loans to get before this nonsense cuts in.  |
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Post by GSV3MIaC on Sept 2, 2015 11:50:09 GMT
Not sure which orifice they pulled the 7% out of .. you sure ain't gonna achieve that on A+ loans at 6%-8% gross (less fee, less probable bad debts).
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am
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Post by am on Sept 2, 2015 11:58:30 GMT
Not sure which orifice they pulled the 7% out of .. you sure ain't gonna achieve that on A+ loans at 6%-8% gross (less fee, less probable bad debts). Recently there has not been much extra return for taking on the riskier loans, other than band E. The newly announced rates reinstate the risk premium.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Sept 2, 2015 12:36:14 GMT
I really do wish that the poll had a "can't be arsed" option.
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Post by easteregg on Sept 2, 2015 12:48:19 GMT
I really do wish that the poll had a "can't be arsed" option. I will try to remember for the next poll.
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adrianc
Member of DD Central
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Post by adrianc on Sept 2, 2015 12:56:35 GMT
I really do wish that the poll had a "can't be arsed" option. It does. That's the fourth option.
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acky
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Post by acky on Sept 2, 2015 12:59:47 GMT
Of course the poll is flawed because those people who use this forum tend to be the active and savvy investors who are undoubtedly in the "29%" that FC implicitly recognise will be worse off with the new methodology. If you polled turkeys, you'd find they wouldn't vote for Christmas!
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SteveT
Member of DD Central
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Post by SteveT on Sept 2, 2015 13:01:26 GMT
Of course the poll is flawed because those people who use this forum tend to be the active and savvy investors who are undoubtedly in the "29%" that FC implicitly recognise will be worse off with the new methodology. If you polled turkeys, you'd find they wouldn't vote for Christmas! I'm reasonably confident I'm in the 2%, let alone the 29%
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Post by bluechip on Sept 2, 2015 14:31:17 GMT
I hate it for 2 reasons.
1 - I like being proactive and feel I should be rewarded for spending more of my time assessing where I invest and when, rather than just dumping money, I bet all the good loans will be filled in seconds by their auto-bid system. 2 - I have a fair chunk in FC, as above I imagine that all the loans will fill quickly with the auto-bid system now - however the auto-bid is 0.5% or 1% of your total as far as I can tell. I don't want to have to invest a significant amount in each loan to ensure I can use their auto-bid system which 90% of people will use now.
I appreciate both FC and RS are changing to make it easier for when the masses start investing in P-P, but FC are no longer a good option for me as they have no security fund and are offering nothing special with the rates. It's horrible how everything is being dumbed down and those that invest a lot are now left in a worse position, it should be the other way around surely?!
Even changing the auto-bid to cash figures rather than percentages would help a little (as I have asked previously and was told it would happen this summer, still waiting).
I am slowly losing my faith with P-P as a whole.
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nick
Member of DD Central
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Post by nick on Sept 2, 2015 15:03:15 GMT
Of course the poll is flawed because those people who use this forum tend to be the active and savvy investors who are undoubtedly in the "29%" that FC implicitly recognise will be worse off with the new methodology. If you polled turkeys, you'd find they wouldn't vote for Christmas! What will be interesting is how much money that 29% holds on the platform. I suspect a lot more than 29%. If these people, of which I am one, start looking to redeploy funds elsewhere it will have a material impact on demand in the short/medium term.
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dorset
Member of DD Central
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Post by dorset on Sept 2, 2015 16:56:02 GMT
I can see why it will be popular with the borrowers and should lead to a better deal flow (pathetic at the moment and hence I am having to use the SM). Probably a good move on the part of Fussy Camels.
Of course it will not be popular with active investors. I have just put money today into two new A+ 36m loans at 10.4% and 9.9%. This will now be down at 8.0%. Will I pull out of FC? Probably not but it does open up a new market for a P2P platform that encourages and values active investors.
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awk
Posts: 276
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Post by awk on Sept 2, 2015 17:23:41 GMT
Hi,
I tend to invest via the SM, so initially I wasn't sure what the announcement would actually mean to me.
However, just had a look and all top rates on the SM have fallen today - even the ones I'm already maxed out on.
so, is this just a coincidence, or is something happening ??
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Post by mitosan on Sept 2, 2015 17:25:58 GMT
A sad day.
I enjoyed reading all the blurb and data that went with each loan option and then deciding if/what rate to invest.
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pa
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Post by pa on Sept 2, 2015 17:29:24 GMT
Hi, I tend to invest via the SM, so initially I wasn't sure what the announcement would actually mean to me. However, just had a look and all top rates on the SM have fallen today - even the ones I'm already maxed out on. so, is this just a coincidence, or is something happening ?? ... I pulled all my loans apart from PLs that I had on the SM. I feel that in a few months time I will be able to sell them at a higher premium when the fixed rates become "standard" and am happy to hold the risk until that time.
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