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Post by aloanatlast on Oct 19, 2015 14:32:09 GMT
Funky Chickens: We're going to add cashback at some point this afternoon, but you won't know when it's coming.
Flippers (in unison): Can't be 5 minutes from the end, because then we'll know it's imminent. Can't be 10 minutes from the end, because then we'll know it's imminent, having already proved that it can't be in the last 5 minutes. Etc etc etc.
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arbster
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Post by arbster on Oct 19, 2015 14:37:09 GMT
I think most of the loans have such a small amount left to fund that it will be cheaper for them to buy and hold the remainder than to give cashback on the whole loan, so I expect to see them fill at the last minute.
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ablender
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Post by ablender on Oct 19, 2015 14:43:13 GMT
The fixed rate well seems to be drying out.
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sl75
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Post by sl75 on Oct 19, 2015 16:21:46 GMT
Perhaps they'll need to tell the "naughty boys and girls" who bid more than 20% on some auctions before that their punishment is they they need to help fill this listing?
... or they sacrifice this one, letting it fail, and hope the funds will redistribute themselves amongst the other loans that are falling a little short of 100% funding?
Don't all bid at once!
Edit: new bidder - "FC Finance" - assuming the most obvious explanation for such a bidder name, when did the rules change to allow FC to bid on non-property loans?
Anyone who had planned (for various possible residual reasons) to leave it until the last minute has been denied the opportunity to bid (not me, but you never know...), so the countdown timer is a clear fallacy...
More to the point, what about the poor "whole loan" bidders who might have been hoping to have one of our cast-offs for a change?
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acky
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Post by acky on Oct 19, 2015 16:44:38 GMT
16434 got over the line with 260 bids at £20 by FC themselves. I wonder how quickly they'll sell on the SM!?  |
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pa
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Post by pa on Oct 19, 2015 16:47:46 GMT
I think most of the loans have such a small amount left to fund that it will be cheaper for them to buy and hold the remainder than to give cashback on the whole loan, so I expect to see them fill at the last minute. ... Anyone else notice Lender "FC F****ce" coming in to fill up loan 16434 with 20 minutes to spare?
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sl75
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Post by sl75 on Oct 19, 2015 16:48:22 GMT
the countdown timer is a clear fallacy... Indeed, looking "below the line", I see that it still officially had over 20 minutes left to run when FC Finance prematurely filled it.
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acky
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Post by acky on Oct 19, 2015 16:49:07 GMT
Perhaps they'll need to tell the "naughty boys and girls" who bid more than 20% on some auctions before that their punishment is they they need to help fill this listing? ... or they sacrifice this one, letting it fail, and hope the funds will redistribute themselves amongst the other loans that are falling a little short of 100% funding? Don't all bid at once! Edit: new bidder - "FC Finance" - assuming the most obvious explanation for such a bidder name, when did the rules change to allow FC to bid on non-property loans? Anyone who had planned (for various possible residual reasons) to leave it until the last minute has been denied the opportunity to bid (not me, but you never know...), so the countdown timer is a clear fallacy... More to the point, what about the poor "whole loan" bidders who might have been hoping to have one of our cast-offs for a change? Presumably FC's systems or rules won't allow them to fill up a loan once the time has elapsed, and the poor guy who had to hit the "Buy" key 260 times isn't paid enough to want to stay in the office till 6 p.m.!
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arbster
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Post by arbster on Oct 19, 2015 17:03:47 GMT
16434 got over the line with 260 bids at £20 by FC themselves. I wonder how quickly they'll sell on the SM!? They've previously said they hold parts that they purchase under these circumstances, but if that's the case I would have expected them to simply buy it all in one chunk. Maybe they're covering the options.
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TitoPuente
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Post by TitoPuente on Oct 19, 2015 17:12:09 GMT
16434 got over the line with 260 bids at £20 by FC themselves. I wonder how quickly they'll sell on the SM!? They've previously said they hold parts that they purchase under these circumstances, but if that's the case I would have expected them to simply buy it all in one chunk. Maybe they're covering the options. Isn't a different entity now? I have no doubt that they will put all those parts in the SM as soon as the loan draws down. It is the lever that they needed to solve the problem of loan mispricing that did not exist with auctions.
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arbster
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Post by arbster on Oct 19, 2015 17:19:43 GMT
They've previously said they hold parts that they purchase under these circumstances, but if that's the case I would have expected them to simply buy it all in one chunk. Maybe they're covering the options. Isn't a different entity now? I have no doubt that they will put all those parts in the SM as soon as the loan draws down. It is the lever that they needed to solve the problem of loan mispricing that did not exist with auctions. No, they've had to do the same thing with property loans before, and specifically said they bought to hold.
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Post by loanstar on Oct 19, 2015 17:25:10 GMT
Now we have the wonderful freedom to sell parts at -20% discount perhaps FC could be the first use the option.
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Post by GSV3MIaC on Oct 19, 2015 17:35:11 GMT
They specifically said they'd use their own cash to underwrite later tranches of multi-tranche property loans. Fair enough ..
Then they wiggled and used it to fill tranche1 is a couple of cases. Less fair.
Now they are wiggling further and filling non-property loans too. I have rather more trouble swallowing that..
I suggest they just use their own money to fund all the 'auctions', and then they won't have to mess with awkward folks like lenders depositors any more.
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blender
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Post by blender on Oct 19, 2015 18:55:36 GMT
B*nk*rs!!! They lend the money, they find the funds.
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arbster
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Post by arbster on Oct 19, 2015 18:56:59 GMT
Now you come to mention it, I thought the P2PFA had some specific objections to people using platform money to fund loans?
Agree that filling SME loans is a big departure from what they did with property loans, where the defence was that the developer had commenced development and depended upon later tranches.
It would be far more transparent and honest if they simply added cashback to loans that were not filling up. They should have enough data to see which those will be by now - most of us on this forum could probably call it! They confessed to not having the answers yet - it doesn't feel like filling the loans themselves ought to be one of them, really.
Mischievously, I wonder how much influence readers of this forum have on filling the 35%. If we all voted with our feet and didn't invest in the "cashback candidates" en masse, would they add cashback sooner, draft in bigger chunks of their own cash or even send "rejected" PLs to the WL market, as per my conversation last week...?
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