SteveT
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Post by SteveT on Jan 6, 2016 13:00:40 GMT
This is step in right direction albeit small. Also in the "web world" serious warning are usually marked in red. The whole situation is unacceptable though and I hope it will soon be rectified completely. The fact that you can: a) pay for accrued interest that may never materialize b) pay somebody else's tax c) or avoid tax if you're clever and sell before maturity does not exists anywhere in the financial world. It is plainly wrong, bad, incorrect, unacceptable ect. Although, to a smaller extent, some of the a) and c) applies on the FC SM. There you might buy a loan at 3% premium and carrying 30 days of accrued interest, which then goes RBR the same day and later is defaulted. The seller banks the accrued interest and likely pays no tax on the 3% premium (unless deemed a Trader)
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ben
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Post by ben on Jan 6, 2016 13:22:00 GMT
I agree 3, 4 and 5% premiums are pretty pointless on a 6 month loan even on a new loan with 3% premium, if the loan goes the full term and repays on the right day you would end up with an equivalent of 6% pa on your loan. Agree that smaller amounts would be better
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Post by solicitorious on Jan 6, 2016 14:17:11 GMT
It's not rocket science to replace the drop-down list box with a spin button in 0.1% increments.
Neither is it difficult to display the calculated effective rate before pressing the "Add" button.
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mikes1531
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Post by mikes1531 on Jan 6, 2016 20:46:20 GMT
It's not rocket science to replace the drop-down list box with a spin button in 0.1% increments. Neither is it difficult to display the calculated effective rate before pressing the "Add" button. It's also rather irritating that if the return is lower than that allowed the system doesn't retain what you've entered so that you simply can reduce the premium if you still want to sell that part rather than making you enter the amount and the premium again. Having the return available before pressing the 'Add' button also would eliminate the need to go back to the SM listing and search for the part you've just offered as we have to do now in order to find out what the return is and to see where it is in the queue. If the return can't be made to appear automatically as soon as we enter the data then I'd consider an additional 'Calculate Return' button to be an acceptable alternative.
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littleoldlady
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Post by littleoldlady on Jan 7, 2016 8:56:52 GMT
Discount options can stay as they are. No-one in the current climate really needs to use them anyway (anything at par seems to disappear soon enough) So the sun is shining today so It's OK to throw away my umbrella? This is the attitude that caused the 2008 financial crash. We are presently in the benign phase of the cycle. In the future there will be defaults, there will be losses and there will be repossessed assets which do not realise the loan amount, and there will be loan holders who need access to the cash even at a loss. (This is not to say that p2p lending is too risky. Well diversified portfolios will hopefully survive OK as the high rate of interest will cover a portion of losses)
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SteveT
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Post by SteveT on Jan 7, 2016 9:14:27 GMT
Discount options can stay as they are. No-one in the current climate really needs to use them anyway (anything at par seems to disappear soon enough) So the sun is shining today so It's OK to throw away my umbrella? This is the attitude that caused the 2008 financial crash. We are presently in the benign phase of the cycle. In the future there will be defaults, there will be losses and there will be repossessed assets which do not realise the loan amount, and there will be loan holders who need access to the cash even at a loss. (This is not to say that p2p lending is too risky. Well diversified portfolios will hopefully survive OK as the high rate of interest will cover a portion of losses) I don't understand your point? Throwing away what umbrella? I'm suggesting the the discount options (from -1% to -5%) be left as they are now.
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littleoldlady
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Post by littleoldlady on Jan 7, 2016 9:27:37 GMT
So the sun is shining today so It's OK to throw away my umbrella? This is the attitude that caused the 2008 financial crash. We are presently in the benign phase of the cycle. In the future there will be defaults, there will be losses and there will be repossessed assets which do not realise the loan amount, and there will be loan holders who need access to the cash even at a loss. (This is not to say that p2p lending is too risky. Well diversified portfolios will hopefully survive OK as the high rate of interest will cover a portion of losses) I don't understand your point? Throwing away what umbrella? I'm suggesting the the discount options (from -1% to -5%) be left as they are now. OK the main thing is that the options are different. I wonder if 5% will be big enough for the discount if things go really pear shaped but I suppose it can always be increased easily enough later if needed. There are plenty of current loans that I would would not buy at a 5% discount but that is my personal preference.
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ben
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Post by ben on Jan 7, 2016 9:37:23 GMT
I agreee, plenty of loans I would not by at 50% discount even on day 1 let alone once you have had to pay some interest on it
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Post by flx123 on Jan 7, 2016 10:57:25 GMT
I wonder, is there a queue on the SM? First in first out? Or are sales random?
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ben
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Post by ben on Jan 7, 2016 10:59:24 GMT
As everyone can sell at whatever premium they want I think they are all listed seperate so you can select which one you want to buy
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mikes1531
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Post by mikes1531 on Jan 7, 2016 16:08:52 GMT
I wonder, is there a queue on the SM? First in first out? Or are sales random? Each available part is listed separately. If you want to buy a part, you choose which one you want to buy and then purchase it. So there's really no queuing.
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littleoldlady
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Post by littleoldlady on Jan 7, 2016 22:34:57 GMT
Just put some on at a discount - just to see one listed. Still there after 1 minute.
There is a slight bug. A loan which has one less day than the minimum to be eligible for sale shows on the list as eligible, but if you then try to sell it it then says it's too old.
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Post by mrclondon on Feb 1, 2016 12:08:59 GMT
Someone is currently offering lots of bits at 3% discount .... I've no cash available 
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SteveT
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Post by SteveT on Feb 1, 2016 12:16:02 GMT
Someone is currently offering lots of bits at 3% discount .... I've no cash available Gone already. Perhaps they were pulled?
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daveb4
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Post by daveb4 on Feb 3, 2016 7:14:05 GMT
Hi looking to possibly sell some units and just want to make sure i understand this secondary market correctly. If I wished to sell say £100 and sell it after 1 month with a 1% premium and the interest rate is 12%. I place the funds on the secondary market and lets say it sold straight away - I would get my £100 back plus £1 of interest (from holding for 1 month) plus £1 premium fee. eg £102? I do appreciate it may not work exactly as this but hopefully numbers will be very close as in a few pence. I do appreciate buyers have all the tax issues etc etc.  Thanks for any help |
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