blender
Member of DD Central
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Post by blender on Aug 17, 2018 14:38:12 GMT
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Post by df on Aug 17, 2018 14:38:51 GMT
Friday pm and demand on the SM is so high that I am constantly being tempted to sell, at a premium, loans which I would rather hold longer for some more interest. I don't know whether to complain about this, or to say thank you. Any advice? Looks healthy to me. I'm not selling anything, rather hold to term and receive interest.
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nw99
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Post by nw99 on Aug 17, 2018 20:02:14 GMT
I’ve been selling at some ludicrous premiums in recent days. Same crazy premiums I am a seller
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Post by Proptechfish on Aug 18, 2018 0:51:05 GMT
I’ve been selling at some ludicrous premiums in recent days. Same crazy premiums I am a seller Yea and I'm a mug buying them  102.5% has been my max after waiting a couple of weeks for a match. It's because I'm trying grow my ABL portfolio and new loan generation is so slow. I've seen offers as high as 108%, too rich for me, 102.5% already has me twitching.
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Post by Ace on Aug 18, 2018 7:02:00 GMT
Same crazy premiums I am a seller Yea and I'm a mug buying them 102.5% has been my max after waiting a couple of weeks for a match. It's because I'm trying grow my ABL portfolio and new loan generation is so slow. I've seen offers as high as 108%, too rich for me, 102.5% already has me twitching. Doesn't sound that crazy to me. Sacrificing a couple of months interest on a loan that has a couple of years to run sounds a fairly reasonable cost to enter a limited market. There is obviously the risk of a small loss if the loan was to repay early, but P2P is all about the risk v reward balance. It would appear to be a very well functioning SM to me, and one that I'm happy to participate in from either side. It gives me confidence that, should I need unexpected access to my funds in a hurry, there is a good chance that this will be achievable with a small profit.
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blender
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Post by blender on Aug 18, 2018 7:59:31 GMT
Yes, it is an excellent and well-functioning SM. The issues are with overall supply of loans and demand on the platform. My feeling is that even if new loan supply was ramped up considerably, the SM would still be strong, because of the amount of refugee cash from other platforms. Coll is gone, Lendy, FS and now even 2017 favourite MT are falling from grace. The strong SM will weaken only if sentiment moves against Ablrate for some reason, imo. That would require a material cause.
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picnicman
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Post by picnicman on Aug 18, 2018 9:10:06 GMT
Yes, it is an excellent and well-functioning SM. The issues are with overall supply of loans and demand on the platform. My feeling is that even if new loan supply was ramped up considerably, the SM would still be strong, because of the amount of refugee cash from other platforms. Coll is gone, Lendy, FS and now even 2017 favourite MT are falling from grace. The strong SM will weaken only if sentiment moves against Ablrate for some reason, imo. That would require a material cause. The same was being said about all the above at some time in the past and look what has happened. Lots of loans on ABL with the same borrower that are yet to repay. For those above, let us hope that the poorer times for ABL are far off or never happen  - I know how to cheer people up at the weekend 
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ceejay
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Post by ceejay on Aug 18, 2018 9:47:04 GMT
... The strong SM will weaken only if sentiment moves against Ablrate for some reason, imo. That would require a material cause. Well, sentiment moving against Ablrate would be ONE reason for the SM weakening.
However, more likely IMHO would be a failure of confidence in the wider P2P market, which could be triggered by any number of different external economic shocks - I mean, can anyone think of anything going on in the wider world at the moment which might impact the UK economy in some way?
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pom
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Post by pom on Aug 18, 2018 9:51:42 GMT
Yes, it is an excellent and well-functioning SM. The issues are with overall supply of loans and demand on the platform. My feeling is that even if new loan supply was ramped up considerably, the SM would still be strong, because of the amount of refugee cash from other platforms. Coll is gone, Lendy, FS and now even 2017 favourite MT are falling from grace. The strong SM will weaken only if sentiment moves against Ablrate for some reason, imo. That would require a material cause. I reckon it'll happen as soon as there's another default for something not already almost repaid (quite a few left after the containers I think) - too many people getting spooked by defaults and not wanting to stick around to see what happens with recoveries - sometimes for good reason, but in MTs case at least I don't think we know enough yet for any viewpoints to be supported by statistics (if I could still remember how to calculate them) because to expect full recoveries in every instance for these types of loans would be naive.
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SteveT
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Post by SteveT on Aug 18, 2018 10:24:51 GMT
Someone keeps buying the remainder of my most cherished loan (DV - G) at 7.9% premium, representimg almost 7 months of interest and an APR to term (if it goes that far) of just 8.5%. Mad (IMHO)
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blender
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Post by blender on Aug 18, 2018 10:57:16 GMT
... The strong SM will weaken only if sentiment moves against Ablrate for some reason, imo. That would require a material cause. Well, sentiment moving against Ablrate would be ONE reason for the SM weakening.
However, more likely IMHO would be a failure of confidence in the wider P2P market, which could be triggered by any number of different external economic shocks - I mean, can anyone think of anything going on in the wider world at the moment which might impact the UK economy in some way?
True I was only speaking about relativities in our own little sector. A major cause of disaffection would be severe problems with one of those intermediaries, as noted by picnicman. Trouble is that it seems to me that it would be difficult to get a cigarette paper between Ablrate and the intermediaries, and we have to accept that mutuality and act accordingly.
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Post by Ace on Aug 18, 2018 14:04:03 GMT
Someone keeps buying the remainder of my most cherished loan (DV - G) at 7.9% premium, representimg almost 7 months of interest and an APR to term (if it goes that far) of just 8.5%. Mad (IMHO) Ok that is a little odd when it's sister loan is available at a 10.9% yield, especially as there are lots of others available at higher yields. Having said that, when looked at in isolation, a fairly solid looking loan paying 8.5% is still a reasonable investment.
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blender
Member of DD Central
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Post by blender on Aug 18, 2018 20:37:08 GMT
Someone keeps buying the remainder of my most cherished loan (DV - G) at 7.9% premium, representimg almost 7 months of interest and an APR to term (if it goes that far) of just 8.5%. Mad (IMHO) Ok that is a little odd when it's sister loan is available at a 10.9% yield, especially as there are lots of others available at higher yields. Having said that, when looked at in isolation, a fairly solid looking loan paying 8.5% is still a reasonable investment. 8.5% sounds ok, until you find out that the borrower is paying 25% for the use of your capital. Personally I would be unhappy with taking all the risk for a third of the reward.
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Post by dan1 on Aug 18, 2018 20:45:37 GMT
Ok that is a little odd when it's sister loan is available at a 10.9% yield, especially as there are lots of others available at higher yields. Having said that, when looked at in isolation, a fairly solid looking loan paying 8.5% is still a reasonable investment. 8.5% sounds ok, until you find out that the borrower is paying 25% for the use of your capital. Personally I would be unhappy with taking all the risk for a third of the reward. Interesting discussion because the borrower in question also has a facility on Growth Street where investors currently receive 5.3% with the benefit of a provision fund. Of course, the security may not be directly comparable but one would assume the risk of default is?
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Post by Ace on Aug 18, 2018 20:51:06 GMT
Ok that is a little odd when it's sister loan is available at a 10.9% yield, especially as there are lots of others available at higher yields. Having said that, when looked at in isolation, a fairly solid looking loan paying 8.5% is still a reasonable investment. 8.5% sounds ok, until you find out that the borrower is paying 25% for the use of your capital. Personally I would be unhappy with taking all the risk for a third of the reward. Fair point blender, but I get a much smaller share of the pot than that on many platforms. I realize that they're not directly comparable, but some of the unsecured personal loan platforms charge the borrower more than ten times what they pay the lender, and I still invest!
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- I know how to cheer people up at the weekend 
