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Post by accman on Oct 9, 2015 12:11:15 GMT
I too am holding with the property deals whilst they are still available.
Definitely looking for somewhere else to go as the inv'bots and the script investors are taking pretty much everything that is available. I think I've managed one investment that wasn't property all week which is absolutely diabolical. On that one investment the fact that the bots hadn't grabbed it all even got me thinking had I missed something on the DD.
The way FC has gone points to them possibly ditching the loan bidding in the end and just offering fixed rate returns.
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Post by Butch Cassidy on Oct 9, 2015 12:52:13 GMT
I joined FC nearly 3 years ago to invest in SME’s for mutual benefit but am now running down my account as I don’t want property (enough exposure elsewhere), aren’t interested in farming CB & only see the new D&E rates as being sufficient to reflect the risk, however I am not prepared to pick up the remaining dregs after both institutional WL & bot hoovers have had their pick.
Unfortunately it now looks like AC are also trying to follow a similar path so my 2 largest platform holdings will need new homes over the next few months.
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Post by jackpease on Oct 9, 2015 13:07:43 GMT
I'm sticking with it - I did badly before the change so maybe i'll be a winner from the change at the expense of you clever guys!
Over the past years I have taken a view on the risk/reward and platform risk on other platforms and think it's a bad idea to leave FC in a huff and forget why one set limits on other platforms. Just in case people think all this is safe then read the "So, according to the ES a P2P company is in trouble" thread and reassure yourself that funds that you are withdrawing from FC are not headed somewhere bad!
Jack P
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Post by GSV3MIaC on Oct 9, 2015 13:24:37 GMT
I'm winding down .. there are not enough C/D/E loans to soak up the cash**, and historically the failure rate on A+ through B doesn't support the lower rates FC want to offer me (nor does it support the case for lower rates for shorter terms, although maybe the risk of future interest rate hikes is what they are pricing in, rather than lower defaults each month on shorter loans? Yes, OK, 12 month loans have a lower =overall= failure rate, but near as I can tell their chance of going kaput in month N (N<12!) is just the same as that for a 60 month loan (i.e. no significant demonstrable difference yet).
Property loans might be an option, but only with 2% CB, and slow flipping - don't want significant sums invested in overpriced London Flat developments, Thanks.
** They just are not there guys/gals .. don't blame the autobidders or bots (although B*z... and el*** haven't helped, I agree), the volume has not appeared.
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trevor
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Post by trevor on Oct 9, 2015 13:39:35 GMT
Not reinvesting capital/interest in my holding account but not selling on the SM at the moment. SS has got to my max limit so most of it is going to FS and some to AC. Higher interest and better security.
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Post by Butch Cassidy on Oct 9, 2015 13:45:01 GMT
I'm winding down .. there are not enough C/D/E loans to soak up the cash**, ** They just are not there guys/gals .. don't blame the autobidders or bots (although B*z... and el*** haven't helped, I agree), the volume has not appeared. The loanbook shows there appears to be plenty of deal flow but large swathes are being taken as Whole loans & a good chunk of what's left is being rebranded as A+/A & B (not that I ever took much notice of risk bands before anyway) but with fixed rates it has locked in unacceptably low rates for loans/businesses that don't warrant them on the figures or pitch IMO. Any E that does make it through then gets botted within 90 seconds by a handful of players & FC refuse to address or act on the issue. I am also not impressed by the way they have internally marketed any existing borrower that has a higher rate (for the risk band) to repay & replace with a new lower fixed rates, this kind of deliberate churn directly benefits FC at the expense of current lenders & is pretty shabby Bondoresque practise.
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oldgrumpy
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Post by oldgrumpy on Oct 9, 2015 13:54:34 GMT
"...but large swathes are being taken as Whole loans & a good chunk of what's left is being rebranded as A+/A & B (not that I ever took much notice of risk bands before anyway....)"
Really? Have you seen actual details which prove this? What were the risk bands originally on loans currently available to us? Whic loans have had a different risk band given to us? I have commented elsewhere that an awful lot of what we are offered now is A+ or A.
...I am also not impressed by the way they have internally marketed any existing borrower that has a higher rate (for the risk band) to repay & replace with a new lower fixed rates...
I had a nasty feeling that this was already happening.
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Post by aloanatlast on Oct 9, 2015 13:55:11 GMT
FC have built their own entry barrier - there's little reason for a loan broker to recommend an alternative P2P to a client. I'm scared that too many other firms will fail to build sustainable volume before they run out of backing. I know there are supposed to be arrangements in place for collections, but I'd rather it not be me testing those arrangements.
Having said that, given that I try to limit my long-term holdings to very small exposures, I think FC will now slowly squeeze me out by just not offering enough loans to buy.
Especially as so many borrowers are the wrong kind of firm.
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arbster
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Post by arbster on Oct 9, 2015 13:59:37 GMT
FC made a big play of the fact that fixed rates would attract a better class of borrower, so it's to be expected that we'd see more A+/A loans coming through. We shouldn't see any fewer C/D/E loans, but they may be a smaller proportion due to the increase in A+/A - higher risk borrowers would have had fewer alternatives in the past, so would have stuck with the auction process which apparently put off so many others.
We'll need a few more months to see whether this has transpired, but there does remain the unanswerable question as to whether FC's risk assessment process has "softened" somehow, given the rather flaky financials associated with many of the A+/A loans we're seeing.
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Post by Butch Cassidy on Oct 9, 2015 14:25:01 GMT
"...but large swathes are being taken as Whole loans & a good chunk of what's left is being rebranded as A+/A & B (not that I ever took much notice of risk bands before anyway....)"
Really? Have you seen actual details which prove this? What were the risk bands originally on loans currently available to us? Which loans have had a different risk band given to us? I have commented elsewhere that an awful lot of what we are offered now is A+ or A.
...I am also not impressed by the way they have internally marketed any existing borrower that has a higher rate (for the risk band) to repay & replace with a new lower fixed rates...
I had a nasty feeling that this was already happening.
Loanbook is downloadable for anyone to see how many WL against PL loans there are. Personally I have always assessed a loan solely on the pitch & financials then supplemented with Q&A if necessary, whether on FC or not, largely ignoring the risk bands. As for the decline in ratings - Just look how strong the A+ & A loans of 3 years ago were compared to what is being offered now, risk band ratings are subjective & manipulated to fit whatever statistics FC see fit, IMO quality has reduced whilst quantity has increased - but maybe just a coincidence 
I used to have a repayment/renewal loan once every couple of months or longer but I've already had 4 or 5 since the new bands came in - maybe just another coincidence I am happy for the borrower/business to benefit but resent any platform that tries to benefit at the direct expense of it's lenders - those Bondora investors will know exactly what I mean.
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registerme
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Post by registerme on Oct 9, 2015 14:31:19 GMT
I've said in other posts that I understand why FC are doing this (in terms of how they are managing their business), and I realise that the 37 of us who have voted so far are a long way from being representative of the wider FC customer base, but I still think it's a shame  . |
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parisingoc
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Post by parisingoc on Oct 9, 2015 16:26:05 GMT
Wound down and gone - except for a couple of loans with just months to run which I will wait out and exit.
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agent69
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Post by agent69 on Oct 9, 2015 16:51:35 GMT
Disposed of all but one of my loan parts over the last couple of weeks. It's a property loan which had 2% CB. I know I will need to discount it to move it, just can't bring myself to do it.
Funds off to SS, happy days.
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oldgrumpy
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Post by oldgrumpy on Oct 9, 2015 17:02:32 GMT
I am trying to sell some B risk parts and all I get is "there was a problem putting your loan parts up for sale" - but Fusty Chrysanthemums system is too stupid to actually tell me what the problem is.
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Steerpike
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Post by Steerpike on Oct 9, 2015 17:24:48 GMT
I am trying to sell some B risk parts and all I get is "there was a problem putting your loan parts up for sale" - but Fusty Chrysanthemums system is too stupid to actually tell me what the problem is. I had that last week, eventually I realised that there was only one payment left which I think prevents sale, perhaps there's another rule or two.
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