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54%
Sept 9, 2015 18:11:56 GMT
Post by betterthanworking on Sept 9, 2015 18:11:56 GMT
Currently seven A+ property loans all filled by 54%. Looks like autobid being even handed, and not much input from thinking, judging human beings.
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Post by GSV3MIaC on Sept 9, 2015 18:30:21 GMT
About 18 months back autobid was 'fixed' so it tries to fill all loans to the same %age (I queried it the first time I saw it happen) .. which means autobiddies get lots of what nobody else wanted. It also explains why the tall one can stop autobid playing at all with some auctions by just filling them up with 15% bids. Neither of these are exactly desirable, but FCs fix seems to involve more babies than bathwater.
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54%
Sept 9, 2015 18:35:46 GMT
Post by betterthanworking on Sept 9, 2015 18:35:46 GMT
Ah, thank you GSV3MIaC. After I made the first post, I realised that with the loans being different amounts, there had to be more to it.
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blender
Member of DD Central
Posts: 5,719
Likes: 4,272
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54%
Sept 10, 2015 7:31:38 GMT
Post by blender on Sept 10, 2015 7:31:38 GMT
All 64% this morning. The last third is the steepest part of the mountain, and I hope that FC can be encouraged to increase the cash back on some of these 8% property loans.
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SteveT
Member of DD Central
Posts: 6,875 
Likes: 7,924
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54%
Sept 10, 2015 7:43:57 GMT
Post by SteveT on Sept 10, 2015 7:43:57 GMT
All 64% this morning. The last third is the steepest part of the mountain, and I hope that FC can be encouraged to increase the cash back on some of these 8% property loans. I do find it a bit spooky the way all these property loans are tracking each other towards filling. Will we see the same happening on SME loans soon (I assume so)
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blender
Member of DD Central
Posts: 5,719
Likes: 4,272
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54%
Sept 10, 2015 8:51:49 GMT
Post by blender on Sept 10, 2015 8:51:49 GMT
All 64% this morning. The last third is the steepest part of the mountain, and I hope that FC can be encouraged to increase the cash back on some of these 8% property loans. I do find it a bit spooky the way all these property loans are tracking each other towards filling. Will we see the same happening on SME loans soon (I assume so) Autobid can only provide 65% of a fixed rate loan, and we now know why they increased it from 50%. It will be interesting to see what happens when Autobid is spent on these property loans. Annualised rate after fees is too low for me. Will sit tight this week.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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54%
Sept 10, 2015 10:04:47 GMT
Post by TitoPuente on Sept 10, 2015 10:04:47 GMT
The bottom line is that 8% is neither attractive enough nor liquid enough to invest, regardless of whatever cashback they offer. They have to figure this out at some point.
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54%
Sept 10, 2015 10:10:48 GMT
Post by GSV3MIaC on Sept 10, 2015 10:10:48 GMT
All 64% this morning. The last third is the steepest part of the mountain, and I hope that FC can be encouraged to increase the cash back on some of these 8% property loans. I do find it a bit spooky the way all these property loans are tracking each other towards filling. Will we see the same happening on SME loans soon (I assume so) We already have, back when there were more loans than bidders, so the bulk was being autobid-filled (to 50%). We might again, when there is little incentive for manual bidders to pile in (i.e. fixed rate loans)... when I first saw it there were a bunch of SME loans, all being filled to a suspiciously level 3x% .. which is when FC admitted to having adjusted the autobid algorithm to do the levelling (I think that was probably even pre-property auctions). If loans don't fill I suspect that FC will adjust the 65% further - maybe all the way to 100%, after some small pause to see if any manual bidders want to have a go first. Summat like 65% autobid, wait X days, another 35% autobid. Of course that requires some advanced IT. 8>.
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54%
Sept 10, 2015 10:12:41 GMT
Post by GSV3MIaC on Sept 10, 2015 10:12:41 GMT
The bottom line is that 8% is neither attractive enough nor liquid enough to invest, regardless of whatever cashback they offer. They have to figure this out at some point. Hm, at 3%+ cashback I suspect you'd be able to flip it in the first year by giving a lot of the cashback to new arrivals - unless of course there was a steady stream of 3% cashback loans to tempt them instead (and even then they may opt for diversification). But at 1%, no, probably not .. the market is pretty well saturated.
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wysiati
Member of DD Central
Posts: 397
Likes: 86
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54%
Sept 10, 2015 10:14:30 GMT
Post by wysiati on Sept 10, 2015 10:14:30 GMT
About 18 months back autobid was 'fixed' so it tries to fill all loans to the same %age (I queried it the first time I saw it happen) .. which means autobiddies get lots of what nobody else wanted. The main impact was on the larger loans, not necessarily those 'nobody else wanted'
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wysiati
Member of DD Central
Posts: 397
Likes: 86
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54%
Sept 10, 2015 10:18:10 GMT
Post by wysiati on Sept 10, 2015 10:18:10 GMT
The bottom line is that 8% is neither attractive enough nor liquid enough to invest, regardless of whatever cashback they offer. They have to figure this out at some point. For you, me, others here perhaps. They will have modelled this if they have any sense and have a high degree of confidence. There are still more levers they can pull other than cashback. You have to figure out at some point that they don't care if you find it attractive, provided they have enough funds from other sources to replace you (quite possibly at lower cost).
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mikeb
Posts: 1,072
Likes: 472
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54%
Sept 10, 2015 18:07:38 GMT
Post by mikeb on Sept 10, 2015 18:07:38 GMT
The bottom line is that 8% is neither attractive enough nor liquid enough to invest, regardless of whatever cashback they offer. They have to figure this out at some point. Under the current system I would view a blend of those 8% loans, offering cashback, balancing with actual auction based loans at higher rates as "sensible diversification". With the new system stampeding this way, and the removal of the higher rate auction parts that are helping to balance things up, I'm less likely to look at these A+ 8% property ones, cashback or not. Another side effect of the new regime.
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