spyrogyra
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Post by spyrogyra on Feb 6, 2014 20:58:53 GMT
I wonder why lenders favor smaller and shorter loans. The rates on these loans almost always reach the bottom. Are they considered safer ? Doubt it. Easier to flip? I suspect big lenders try to monopolize smaller loans. Again, why ? Any thoughts ?
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jimbo
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Post by jimbo on Feb 6, 2014 22:34:10 GMT
One word: Autobid
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Post by GSV3MIaC on Feb 7, 2014 0:15:44 GMT
Yep, autobid will eat 45% of anything up to about a £50k auction, usually at feeble rates. Add the govt 10% and you can see there's not much left to bid on.
The stats show very small loans are actually less safe, so that's not it.
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spyrogyra
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Post by spyrogyra on Feb 7, 2014 18:02:47 GMT
Don't get me wrong, I don't want to argue, but if it's autobids, shouldn't 40-45% of any loan be filled automatically right after the start of the auction at the lowest rate ? Or maybe autobids pop up a bit differently?
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oldgrumpy
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Post by oldgrumpy on Feb 7, 2014 18:18:26 GMT
Some people set their own minimum rates for their personal auto-bid system to bid, so not all will be rock bottom. I turned mine off (in 2012) within five minutes as I realised its weaknesses. Luckily the few loans I bid for in that way have (or did) not go bad, but several were way below the rate I could have got on large loan requests by manual bidding.
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Post by GSV3MIaC on Feb 7, 2014 23:08:17 GMT
Don't get me wrong, I don't want to argue, but if it's autobids, shouldn't 40-45% of any loan be filled automatically right after the start of the auction at the lowest rate ? Or maybe autobids pop up a bit differently? Autobid gets run by FC as/when they feel like it, which is rarely at the start of the auction. Last week when the servers were sick, some of the autobid runs seem to have been delayed hours or even days. There is a limited pool of autobid money, so what you'll see is loans filling up to ~ £20k, or 45%(+10% gov't cut), whichever is smaller. Right now I think the autobid pots are rather depleted so maybe not even that high (although they fill up overnight when repayments trickle in). The rest is up for grabs by humans. On a small/attractive loan the thing may be 100% funded before autobid even gets a shot at it (used to be a big problem with small C-s). If you hover over the display you can see the bids pour in (big spike in bidding speeds) when it happens, then normality resumes.
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blender
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Post by blender on Feb 7, 2014 23:18:21 GMT
I thought that the limit on Autobid was at MBR, and that any percentage could be taken by Autobid above MBR. Has it changed?
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jimbo
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Post by jimbo on Feb 8, 2014 1:52:28 GMT
It's not changed, but judging by the rate bands/amounts lent per band shown in each summary, a large number of autobidders would appear to be bidding at MBR. The reason I say this is, I can only think of one or two reasons (mainly altruistic) why manual bidders would do this...
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Post by GSV3MIaC on Feb 8, 2014 17:09:38 GMT
iirc MBR is the default for new autobid setups, and is also what all old autobidders will have been raised to if they didn't make any manual changes since they set it up years ago. Autobid, as she currently exists, is horrid, but does keep flippers in business, and gets loans funded slightly cheaper.
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mikeb
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Post by mikeb on Feb 8, 2014 18:45:20 GMT
Autobid, as she currently exists, is horrid, but does keep flippers in business, and gets loans funded slightly cheaper. Flippers? Right now, it feels like Pancake day meets The Matrix. You toss a pancake into the air, and then everything goes into bullet time, and it just hangs there 
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Post by GSV3MIaC on Feb 8, 2014 18:56:37 GMT
Right now I'm not sure autobid is even running .. I have a few 0% markup parts just sitting there not getting bought too. Normally they'd vanish in seconds. Maybe the bid-bots that trawl the secondary market all died when the website was
misbehaving so badly, and have not yet sprung back to life ..
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mikeb
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Post by mikeb on Feb 9, 2014 19:49:12 GMT
Right now I'm not sure autobid is even running .. I have a few 0% markup parts just sitting there not getting bought too. Normally they'd vanish in seconds. Maybe the bid-bots that trawl the secondary market all died when the website was misbehaving so badly, and have not yet sprung back to life .. Something's running and picking up 0.0% parts, just very slowly now. FC do seem to be randomly switching off bits of the site to stop it getting overloaded, payment runs, autobid, etc. so it may be victim to that. But also, the autobidder must be utterly shagged out dealing with the new loans piling through, it's probably using up all of the available cash!
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Post by GSV3MIaC on Feb 9, 2014 19:54:53 GMT
Yep, most of mine have now vanished. Could be the autobid pots were empty, and have now refilled after the payment runs.
Not much evidence of liveware doing any buying (eg at markups/downs) though, even though there are some fairly tasty (by recent standards) rates on offer on the secondary market right now.
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mikeb
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Post by mikeb on Feb 9, 2014 23:13:44 GMT
If you call a B grade selling at 6.9% after markup "liveware in operation" ... then yes, there is liveware in operation, but not enough of it  |
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