SteveT
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Post by SteveT on Sept 15, 2015 15:39:24 GMT
OOoo, an SMS about Pebble 58, must be alarmed at how slow its filling. Been at least 4hrs!  Just like the old days!
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Post by supernumerary on Sept 15, 2015 15:41:05 GMT
Will be interesting to see how big the pre-fund pot will be for this one... Smaller than the loan. 100% of pre-fund request, according to the email I've just had. <edit> According to the loan part page, £1,829,000 funded so far of £3m - so £1,170,300 on the market at the mo. In three and a half hours, that figure has gone to £2,229,816.64. £400,000 in three and a half hours, with £770,183.36 remaining. At this rate, it will completely funded at around 11pm. That rate will probably increase when people get home from work, in the evening, so could be earlier.
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pom
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Post by pom on Sept 15, 2015 15:56:17 GMT
I'm looking to hold no more than 10% of my personal loan book in each loan and I've got £50k invested in all. What sort of proportions are others taking up? I only aim for <2% per loan generally unless there is a good reason to exceed I'm on less than 0.5% of my p2p pot per SS loan at the moment...but I'm a bit over-diversified and need to stop using some platforms.
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paulgul
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Post by paulgul on Sept 15, 2015 16:58:06 GMT
I only aim for <2% per loan generally unless there is a good reason to exceed I'm on less than 0.5% of my p2p pot per SS loan at the moment...but I'm a bit over-diversified and need to stop using some platforms. Can you be "over diversified" - the more thinly you are spread, both loans and platforms, the better I would have thought. record keeping might pose a bit of a headache but that's the only problem I can see.
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webwiz
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Post by webwiz on Sept 15, 2015 17:02:05 GMT
I got 100% allocation which was £5k. I was overweight in PBL54 so I sold £5k of that in a matter of about 5 mins and have effectively re-balanced. This works well. I'm looking to hold no more than 10% of my personal loan book in each loan and I've got £50k invested in all. What sort of proportions are others taking up? I tried to apply some logic to the question. Suppose you started with a portfolio and managed to get through a year without any loss. You are now 12% ahead. If you rebalanced your portfolio to 8 equal loans of 12.5% of portfolio you could stand one total loss and still be ahead. You could diversify further and have 16 loans of 6.25% and then you could stand two total losses. Of course in practice you will have to work towards this situation as your portfolio increases but so far the liquidity of the SM makes this relatively easy. I have been with SS for a year and have built up a portfolio of currently 17 loans (several others have been repaid) roughly balanced and have earned interest greater than my average loan so I can now stand one total loss. (Actually apart from fraud an asset backed loan should not be a total loss, plus there is the PF, but I am addressing the original question)
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am
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Post by am on Sept 15, 2015 17:39:55 GMT
I'm putting my toe into the SS waters, with a maximum of 10% in any one loan (to reduce to 5% with the next tranche of investment), which is equivalent to 0.4% of my P2P portfolio. (I've got a few larger chunks elsewhere equal to 2% of my P2P portfolio.) In the future I'll probably let my limit on a single loan at SS drift upwards.
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Post by Deleted on Sept 15, 2015 17:46:12 GMT
I would say I am under diversified.
1. SS is the only P2P platform I am using at the moment.
2. My investments on SS are not well spread. I have about 30% of my total in 1 loan, about 20% in another and 20% in a 3rd. The remaining 30% is spread amongst 7 others.
I am finding the pre-funding system very helpful in diversifying my SS investment. I pre-fund them all, and whatever amount I get, I sell an equivalent amount in one of my bigger loan holdings and then use that money to off-set the funding deficit. I got £2.5k in PBL58 today so that helped, and with the other new loans in the pipeline, I hope that in a few weeks I will be much better diversified and more evenly spread on SS.
I found diversifying quite difficult before, because I missed most of the new loans, but this way I can diversify very easily and simply.
I hope to reach a point where I don't have much more than 5% of my total in any one SS loan. 5% seems about right to me.
I didn't bother about it so much before because it didn't seem to matter on SS, but under the new t&cs this is my aim.
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bjorn
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Post by bjorn on Sept 15, 2015 17:58:50 GMT
4 to 5% of SS pot or overall p2p portfolio? As SteveT's post suggests ("on SS"), would be interesting to hear people's different target levels for different platforms (as a % of total p2p portfolio so it's a like-for-like comparison). That could give some interesting insights into how the perceived risk compares across the different platforms and types of lending. As a fraction of total p2p portfolio, I'm currently targeting 0.5% on anything unsecured, 2% on SS (with its PF as well as property security) and <1% on everything else (e.g., FS).
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webwiz
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Post by webwiz on Sept 15, 2015 17:58:58 GMT
I am finding the pre-funding system very helpful in diversifying my SS investment. I pre-fund them all, and whatever amount I get, I sell an equivalent amount in one of my bigger loan holdings and then use that money to off-set the funding deficit. I got £2.5k in PBL58 today so that helped, and with the other new loans in the pipeline, I hope that in a few weeks I will be much better diversified and more evenly spread on SS. . Did you sell any PBL58 that you put on the SM? If so it answers a question: Do parts on the SM take priority over unsold parts?
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SteveT
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Post by SteveT on Sept 15, 2015 18:04:31 GMT
4 to 5% of SS pot or overall p2p portfolio? As SteveT's post suggests ("on SS"), would be interesting to hear people's different target levels for different platforms (as a % of total p2p portfolio so it's a like-for-like comparison). That could give some interesting insights into how the perceived risk compares across the different platforms and types of lending. As a fraction of total p2p portfolio, I'm currently targeting 0.5% on anything unsecured, 2% on SS (with its PF as well as property security) and <1% on everything else (e.g., FS). That's of my SS pot, which is currently around 1/3rd of my P2P portfolio (and rising, as I begin to sell out of my FC loan book and struggle to find much else currently that offers a comparable balance of risk vs return) I don't usually stray beyond 1% of my total P2P portfolio in any one loan (usually less that 0.5%) but I bend the rules for new SS loans within the first 6 months, especially smaller ones.
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mikes1531
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Post by mikes1531 on Sept 15, 2015 18:05:07 GMT
Did you sell any PBL58 that you put on the SM? If so it answers a question: Do parts on the SM take priority over unsold parts? I thought SS have said that retail lender parts are put into the sales queue ahead of any underwriter parts.
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Post by mrclondon on Sept 15, 2015 18:12:18 GMT
Savills seems to have a pretty poor opinion of the development scheme put forward by the borrower, but do say he is contemplating changing the design ... which presumably would need a revised planning application. Savills also say that the holiday let / leisure scheme as currently approved by planning will act as a brake on sales of the residential units ... so SS's belief of sufficeint sales over the next six months for the borrower to be able to redeem this loan early seems a bit optimistic.
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registerme
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Post by registerme on Sept 15, 2015 18:17:25 GMT
mrclondon, I concluded the same as you, and declined to invest as a result. Not that I think it's necessarily going to go south, but.... perhaps riskier than other options.
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sam i am
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Post by sam i am on Sept 15, 2015 18:22:42 GMT
Savills seems to have a pretty poor opinion of the development scheme put forward by the borrower, but do say he is contemplating changing the design ... which presumably would need a revised planning application. Savills also say that the holiday let / leisure scheme as currently approved by planning will act as a brake on sales of the residential units ... so SS's belief of sufficeint sales over the next six months for the borrower to be able to redeem this loan early seems a bit optimistic. Savills also have a poor opinion of the amount that could be realised if a quick sale is required. The 90 day auction valuation of the entire asset is £2.5m, which is £500k less than the loan amount.
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registerme
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Post by registerme on Sept 15, 2015 18:28:03 GMT
The Savills report also assumes funding costs at 7%.
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