mikes1531
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Post by mikes1531 on Nov 3, 2015 3:38:20 GMT
Dermot - with a relatively low number of high value loans, I agree that it will be a challenge to construct a maturity ladder with regular intervals. Not to mention that there's nothing to guarantee the loan will repay on the maturity date. AIUI, most of these loans have no penalty for early repayment, so they could be repaid at any time. And sometimes they overrun and aren't repaid until after the designated maturity date. I'd been thinking of taking out offers spread over various lengths of time (hopefully maturing at reasonably regular-ish intervals) and as each one matures, taking what I need for that month or two and reinvesting the rest to carry forward. ... Does that seem like a sensible strategy? The shortish maturities at the newish platforms mean that you just can't easily build a ladder for longer term annuity matching, but instead must reinvest regularly. You should look at at least SavingStream, MoneyThing and Ablrate of the newish platform selection and perhaps add FundingSecure with very careful loan selection to provide more of the multi-year deals. There'a s lot of availabilit in the up to a year range from the combination of those three platforms but not so much beyond a year, I think most of that has been at Ablrate in the new platform list and FundingSecure. : Did you really mean to include FS? AFAIK, every FS loan is set up for six months. Some repay early. If the borrower wants to extend their loan, investors can either roll their investment forward into the renewal loan -- interest up to the renewal date would be paid at that time -- or they can opt out of the renewal and receive their principal and interest. The only FS loans that run longer are those where the borrower fails to repay and the security has to be sold. It can take a while to find the right auction for some security -- particularly unusual items, such as expensive artwork or the £40k grand piano that defaulted a few months ago. On those loans, the investor is locked in until the security sale is resolved. (FS do not have a secondary market.)
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james
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Post by james on Nov 3, 2015 3:44:44 GMT
Thanks for the correction, I wrongly thought that FS did some longer term lending. I'll edit to say that it's only Ablrate of that list that routinely has longer term loans. ... and edit now done. Thanks again!
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treeman
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Post by treeman on Nov 3, 2015 23:07:51 GMT
It will be interesting to see how this plays out now given the rapid change in the dynamics on the platform in terms of lender numbers - I believe 5000+ in Oct ? up from 4000 in Aug.
Judging from various comments I guess there will be quite a few chasing a toe-hold on the platform.
I don't doubt the diversifying/recycling will happen, just wondering how quick we will need to be to get something as the pack descends !
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ablender
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Post by ablender on Nov 4, 2015 0:02:21 GMT
Prepare your fangs.
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