duck
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Post by duck on Nov 5, 2015 9:02:33 GMT
I agree pikestaff.
That said, whilst the interest rate is a tad higher than what is becoming the norm it is still 'lowering' my overall % rate. So whilst there is still a risk (nothing final in place at present) the chance to offload and remove my personal 'amber warning' flag was too strong an incentive for me.
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brad
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Post by brad on Nov 5, 2015 9:18:17 GMT
Not my view personally. When in doubt then get out. I have no room for self confirmation bias when Amber/Red flags are flying.
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SteveT
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Post by SteveT on Nov 5, 2015 9:57:20 GMT
I couldn't decide between the 2 positions so opted to halve my "normal" holding for now
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bigfoot12
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Post by bigfoot12 on Nov 5, 2015 10:05:55 GMT
It is a shame (and for those involved with the school much more so) because this is one of the few good rate, good LTV, reasonable size loans that AC have had recently. But easy decision for me as I am drifting away from AC; sell and withdraw.
(I will happily return when (if) the promised deal flow emerges.)
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Post by Deleted on Nov 5, 2015 10:28:13 GMT
What worries me, is across all the portals I operate and whatever the interest rates including higher ones (and hence the risks) AC does seem to have more defaults than any other portal. I just don't need to look at other portals at all to worry about this but AC I keep being surprised. Given the recent discovery within AC of the "extra account" (sorry I can't be bothered to look up the special name), is there something a bit odd in the risk analysis at AC team?
Not really a question but i guess you can see my concern.
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shimself
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Post by shimself on Nov 5, 2015 10:41:55 GMT
..Given the recent discovery within AC of the "extra account" (sorry I can't be bothered to look up the special name), is there something a bit odd in the risk analysis at AC team? Please do look it up, you've go t me worried
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bigfoot12
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Post by bigfoot12 on Nov 5, 2015 10:51:33 GMT
What worries me, is across all the portals I operate and whatever the interest rates including higher ones (and hence the risks) AC does seem to have more defaults than any other portal. Do you lend to FC or TC, or anyone else with similar (SME) borrowers to AC? (So not SS as to date you have been lending to Lendy, etc.)
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Post by Deleted on Nov 5, 2015 11:02:58 GMT
Sorry cannot find the name, but I remember Andrew felt he should say sorry
Certainly my loans to FC have had very little default (fingers crossed), but I did select carefully on the large stream of choices. FS very low default and cash sorted out quickly (really pawn so speed is part of the thing). SS not been in longer enough anyway.
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Post by mrclondon on Nov 5, 2015 12:38:15 GMT
Apologies for dragging this thread further off topic (not that the OP has provided any insight into his claim that started the thread).
I stopped lending on FC almost 2 years ago, and as of now currently have 63 out of 675 loans I've lent on defaulted, so roughly 10% after doing my own due dilligence.
On AC I currently have exposure to 9 loans that have defaulted, and another couple that are in intensive care out of more than 100 I've lent on, again roughly 10% after doing my own due dilligence.
One of my FC loans took nearly 3 years after default to start getting anything back, and its now a eight year repayment plan, so a 11 year recovery period assuming no missed payments.
Capital losses plus zero interest received on distressed loans over periods of many years have to be expected and need to be factored in to expectations on overall returns on p2p loans. I don't see AC's performance at this early stage in their life as out of step with what could reasonably be expected.
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shimself
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Post by shimself on Nov 5, 2015 12:43:37 GMT
I stopped lending on FC almost 2 years ago, and as of now currently have 63 out of 675 loans I've lent on defaulted, so roughly 10% after doing my own due dilligence. On AC I currently have exposure to 9 loans that have defaulted, and another couple that are in intensive care out of more than 100 I've lent on, again roughly 10% after doing my own due dilligence. How on earth can you do Due (y a da da da) Diligence on 775+ loans?
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shimself
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Post by shimself on Nov 5, 2015 12:45:34 GMT
Sorry cannot find the name, but I remember Andrew felt he should say sorry Certainly my loans to FC have had very little default (fingers crossed), but I did select carefully on the large stream of choices. FS very low default and cash sorted out quickly (really pawn so speed is part of the thing). SS not been in longer enough anyway. Was this one particular loan where the borr ower had hidden some bills (the scaffolder I think)
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Post by mrclondon on Nov 5, 2015 12:53:03 GMT
I stopped lending on FC almost 2 years ago, and as of now currently have 63 out of 675 loans I've lent on defaulted, so roughly 10% after doing my own due dilligence. On AC I currently have exposure to 9 loans that have defaulted, and another couple that are in intensive care out of more than 100 I've lent on, again roughly 10% after doing my own due dilligence. How on earth can you do Due (y a da da da) Diligence on 775+ loans? That is one of the reasons why I stopped, the time needed to do DD on unsecured loans isn't worth while. That 665 loans was over a 3 year period (autumn 2010 to autumn 2013) so equates roughly to a loan per weekday over that period. But of course for every loan I was happy with, several more were rejected. The main measures I was looking at were balance sheet strength and EBITA (cashflow proxy). However, as AC's plumber showed, past performance is no guide to the future.
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bigfoot12
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Post by bigfoot12 on Nov 5, 2015 13:22:53 GMT
I stopped lending on FC almost 2 years ago, and as of now currently have 63 out of 675 loans I've lent on defaulted, so roughly 10% after doing my own due dilligence. On AC I currently have exposure to 9 loans that have defaulted, and another couple that are in intensive care out of more than 100 I've lent on, again roughly 10% after doing my own due dilligence. One of my FC loans took nearly 3 years after default to start getting anything back, and its now a eight year repayment plan, so a 11 year recovery period assuming no missed payments. Might I speculate that recoveries on AC are already ahead of those on FC?
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Post by bracknellboy on Nov 5, 2015 13:42:28 GMT
A reminder that this thread is in the public part of the forum and to be careful with putting on information which could identify the borrower. The original post has been moderated to remove the name of the 'nearby school' since the combination of the W**** name of the borrower and the name of the nearby school is a bit close for comfort. pikestaff Likewise i have removed the name of the town from your post as again in combination with the W*** named could lead to easy identification. |
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Post by Deleted on Nov 5, 2015 13:52:55 GMT
Sorry cannot find the name, but I remember Andrew felt he should say sorry Certainly my loans to FC have had very little default (fingers crossed), but I did select carefully on the large stream of choices. FS very low default and cash sorted out quickly (really pawn so speed is part of the thing). SS not been in longer enough anyway. Was this one particular loan where the borr ower had hidden some bills (the scaffolder I think) No, it was the mechanism that AC used to buffer ( us ) from varying payments from the borrowers, which turned out to be banking standard practise but no one seemed to know about it apart from the guys in the detail.
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