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Post by kissmyjazz on Nov 11, 2015 19:08:42 GMT
Something strange is happening with Creamfinance loans. They have disappeared from the primary market and majority of the funded ones are late.
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Post by red_panda on Nov 11, 2015 21:48:32 GMT
Yep, you are correct. Could Martins explain?
My wild guess is that Creamfinance have found a different source of funding at a better rate, so they took away all the loans from primary market.
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Post by martins on Nov 12, 2015 4:14:35 GMT
Creamfinance loans are popular with the investors and are bought out quickly. Even though the loans are added on regular basis the investor demand outstrips the available loan supply and therefore there are less loans on the Primary Market. Also, many investors have set up Auto Invest for Creamfinance loans, thus many of them even don't make to the Primary Market for manual investing. Only loans that are 60+ days late are considered defaulted by Creamfinance. Late paying borrowers is typical and ordinary course of business, especially for this type of loan product. The best way to gauge the overall performance of the loans is to look at www.mintos.com/en/statistics/. While there are quite a few loans late for 1-15 days, only a tiny fraction is late 30+ days. The loans that go 60+ days overdue are bought back under the Buyback Guarantee by Creamfinance in a similar fashion to Mogo secured car loans. Re buyback guarantee. Similar to any other p2p model borrowers are paying more than what investors receive. The buyback guarantee is maintained from this spread. Based on their experience Creamfinance has a good grasp of expected default rates and thus can manage the necessary cash cushion for the buybacks rather precisely.
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Post by patright on Nov 12, 2015 5:21:59 GMT
I am still not sure i understand how we went from having hundreds of personal loans listed to zero, so this is not a technical bug?
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Post by kissmyjazz on Nov 12, 2015 7:17:22 GMT
I honestly have not noticed that Creamfinance loans are so demanded. Sure, there are investors who prefer liquidity, but for many it is a nuisance to reinvest every month, especially since the interest rates have been slashed. Yesterday morning there were hundreds of Creamfinance loans on the market which become 0 in the evening. So who did buy all that loans but did not invest in a pretty good 14.4% mortgage loan on the primary market that is still available, institutional investor?
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Post by patright on Nov 12, 2015 8:16:41 GMT
yes 15% in the payday loan business would be a good rate However i would be fine with 12 if more informations were provided about cream finance . whois shows their website was registered in 2012 so it's not such a long time in business either their website is not providing much useful financial infos. I actually trust Martin (i am not sure why, probably the fact that he answers quickly and politely every time help has done his homework on cream finance and has has access to financial statements and so on. but it's true that more information would be welcome considering that after all..we are putting our hard earned money in this lol
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Post by martins on Nov 12, 2015 9:43:05 GMT
300 loans at an average of 200 EUR each is about EUR 60'000 which is not that much, it takes just a few investors to invests a few tens of thousand EUR in these loans and they are gone. The investor preferences differ. Some prefer shorter duration, some longer; some prefer mortgage loans, some personal loans with buyback guarantee - i.e. there is no one size fits all. Many of the investors use Auto Invest that actually makes investing in short term product hassle free, especially with reinvesting feature enabled. The investor can start and pause the Auto Invest function whenever they want. Thus investing in short duration loans with Auto Invest allows for great flexibility and investors can tailor the duration according to their preferences. For example, an investor can set up an Auto Invest to build a portfolio of EUR 1'000 and with reinvesting enabled maintain that portfolio and then say after 6 months decide that he or she wants to stop investing and withdraw capital - all what it would take would be to stop Auto Invest and wait for a month for repayments to roll in from borrowers that make payments on time and for up to additional 60 days in case the borrower is late and the Buyback Guarantee kicks in. For each loan originator we do an extensive due diligence before we allow them to connect to our platform. We are working on providing a standardised information about each loan originator, however, it will take time before we get it out. For now investors can refer for Creamfinance related information in their website, including factsheets here www.creamfinance.com/media-releases/. To find out more about Mogo investors can refer to their investor relations here mogofinance.com/investor-relations/ and also use NASDAQ resources here www.nasdaqomxbaltic.com/market/?instrument=LV0000801363&list=1&pg=details&tab=tradingAbout Capitalia more information is available also on NASDAQ exchange - www.nasdaqomxbaltic.com/market/?pg=details&instrument=LV0000801488&list=1&price=1Also we ran an investor webinar recently where we covered each of the loan originators, recording is availbale here www.youtube.com/watch?v=XENODmm34mY.
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Rob
Posts: 138
Likes: 36
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Post by Rob on Nov 18, 2015 10:24:58 GMT
Is anybody else having trouble downloading the Loan Book on the statistics page? I have tried opening it in OpenOffice and Microsoft Excel Online, but both say that there are errors in the file.
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Nov 18, 2015 10:45:03 GMT
No problem with downloading and opening. Try importing it into google sheets.
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Post by patright on Nov 20, 2015 13:39:15 GMT
It seems the availability of cream finance loans has not bounce back, is cream finance slowly exiting the market place? did they find liquidity else where?
Hope Martin will let us know what to expect on that front
thanks
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Rob
Posts: 138
Likes: 36
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Post by Rob on Nov 20, 2015 14:05:41 GMT
It seems the availability of cream finance loans has not bounce back, is cream finance slowly exiting the market place? If you look in the Loan Book, there were about 50 listed yesterday. But Martins has stated before that most don't now make it to the Primary Market as people are using Auto Invest to buy them.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
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Post by JamesFrance on Nov 20, 2015 14:08:00 GMT
Most of the 14% ones I did earlier didn't repay and are starting to be bought back. Some balancing entries appearing in my statement today as the amounts repaid left a small amount in each loan yesterday.
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Rob
Posts: 138
Likes: 36
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Post by Rob on Nov 20, 2015 14:32:03 GMT
Most of the 14% ones I did earlier didn't repay and are starting to be bought back. Some balancing entries appearing in my statement today as the amounts repaid left a small amount in each loan yesterday. Same here. Several loans were "paid off" yesterday (according to my statement) with a small residual principal still owing. These principal amounts were then paid using Buy Back today. A bit of a coincidence that several borrowers who were a month overdue suddenly all decided to pay off their loans?!
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Post by patright on Nov 20, 2015 15:45:13 GMT
probably has more to do with the EDI< it's a marketplace so information exchange has to take place I assume
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Rob
Posts: 138
Likes: 36
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Post by Rob on Feb 5, 2016 10:42:02 GMT
Good mortgage loan available now 17938-02 @15.4%. A rarity on the Primary Market now!
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