duck
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Post by duck on Aug 28, 2016 12:30:45 GMT
Yup, I like seeing decent loans listed at 2% discount too!  Perhaps you bought some of mine yesterday! Surprisingly I wasn't trying to drum up more -2% offers (although they are always nice!) but at times when there are not enough 'decent' loans there is always the temptation to overbuy .... but who is going to do that if they think that they will not be able to turn the excess over or make a loss if they do? I know I am 'preaching to the converted' with you SteveT but I'm surprised that there are so few on this forum that have realised that this aftermarket offers so much more than others, you just need to work out a strategy that suits your personal needs.
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Post by eascogo on Aug 28, 2016 16:51:11 GMT
A discount of 2% looks like the required sacrifice to sell quickly on FS's secondary market at the moment. No so long ago discounts on the SM were a rare sight (or disappeared in no time). I am grateful to duck for his example of buying/selling at a discount. The SM is often portrayed in negative terms but it is good to redress the balance by showing that it can benefit both buyer and seller over the same transaction. |
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oldgrumpy
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Post by oldgrumpy on Aug 28, 2016 16:54:13 GMT
Everything I put up at -1% seems to sell within a couple of hours, (even minutes), and that includes short dated property loans and "other" short dated renewals.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 29, 2016 10:53:37 GMT
The SM would be even more useful if "dodgy" and <30 day loans could be offered at relatively large discounts. This would be similar to the Junk Bond market which has a place in the general scheme of things.
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stevio
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Post by stevio on Sept 1, 2016 7:25:12 GMT
Excel wiz - how do you get excel to pull out the details from FS downloaded spreadsheet to work out what you have paid for SM parts and the interest paid at the end of the loan?
Also, does anyone have a FS specific spreadsheet where you enter the downloaded spreadsheet data and it works out your total loan parts etc?
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SteveT
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Post by SteveT on Sept 1, 2016 7:41:28 GMT
Excel wiz - how do you get excel to pull out the details from FS downloaded spreadsheet to work out what you have paid for SM parts and the interest paid at the end of the loan? Also, does anyone have a FS specific spreadsheet where you enter the downloaded spreadsheet data and it works out your total loan parts etc? The CSV download provided by FS can easily be imported into Excel, and the entries decoded via a simple look-up table, but it doesn't provide enough information on SM transactions for you to be able to calculate SM premiums / discounts and accrued interest (just gives the total capital purchased/sold and the total price paid/received). I have to add these manually to my FS tracking spreadsheet after each SM transaction. I then total using a pivot table.
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duck
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Post by duck on Sept 1, 2016 14:11:36 GMT
The recent change to give individual bids (if you bid more than once on a single loan - primary market) has complicated matters, I currently performing a manual operation. SteveT with the older loans (I haven't tested it with the interest from bid date recently added) you can perform the calcs automatically if you manually add in the date of loan draw down, 'todays' date and the interest rate. That gives you the accrued interest paid for and since you should know either the discount paid or base capital paid the other figure can be calculated from the sum paid. I use a similar calc to work out return for buying/selling. Still too much 'manual intervention' for my liking but usually accurate to the 1p. |
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Post by zeverare on Sept 1, 2016 20:21:25 GMT
you can pull data from other screens with webquery
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SteveT
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Post by SteveT on Sept 7, 2016 10:09:46 GMT
The SM discounts/premiums have changed to 0.1 increments up to 1%, could use something for up to 2% (as suggested by SteveT ) as well though. It does seem bizarre that you can tweak a discount from 0.9% to 1% but that the next step available is 2%! [There currently are 10 different offers of Power Boat parts at 1% discount, yet no-one willing to discount to 2%. I suspect several would be quite happy to go to 1.25% or 1.5% discount if they had the option]
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Sept 7, 2016 11:44:24 GMT
The SM discounts/premiums have changed to 0.1 increments up to 1%, could use something for up to 2% (as suggested by SteveT ) as well though. It does seem bizarre that you can tweak a discount from 0.9% to 1% but that the next step available is 2%! [There currently are 10 different offers of Power Boat parts at 1% discount, yet no-one willing to discount to 2%. I suspect several would be quite happy to go to 1.25% or 1.5% discount if they had the option] 1.25%, 1.5%, 1.75%, 2.5% have now been added.
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SteveT
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Post by SteveT on Sept 7, 2016 11:47:35 GMT
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Post by wickedxuk on Sept 7, 2016 12:28:11 GMT
I've been playing with the calculations for effective yield and struggling. I've read a few threads on here but i can't get my head around it. Can someone post a clear list of calculations that are made to get an effective yield/loss to the buyer/seller?
If a buyer gets a £100 loan at -4% discount.
1) Bought for £97.38 by the seller.
2) 35 days gone.
3) 147 days remaining.
4) Accrued interest (£100*14%/365)*35=£1.34).
5) Remaining Interest (£100*14%/365)*147=£5.64.
Can someone continue the steps?
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stevio
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Post by stevio on Sept 7, 2016 12:45:44 GMT
Could really do with an announcement from fundingsecure so everyone is aware
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SteveT
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Post by SteveT on Sept 7, 2016 12:59:06 GMT
I've been playing with the calculations for effective yield and struggling. I've read a few threads on here but i can't get my head around it. Can someone post a clear list of calculations that are made to get an effective yield/loss to the buyer/seller? If a buyer gets a £100 loan at -4% discount. 1) Bought for £97.38 by the seller. 2) 35 days gone. 3) 147 days remaining. 4) Accrued interest (£100*14%/365)*35=£1.34). 5) Remaining Interest (£100*14%/365)*147=£5.64. Can someone continue the steps? A £100 loan offered at 4% discount (which, incidentally, is most unlikely!) with 35 days accrued interest at 14% (£1.34) should cost the buyer £97.34 (rather than £97.38) The "Effective Rate" for the Buyer would then be calculated over an assumed 148 days remaining term (183 - 35), assuming the full 183 days of interest (£7.02) will be paid at completion plus the £100 capital. Therefore the % return from the Buyer's perspective is [Profit Made / Price Paid] / [Days Held / 365]. So in this case = [(£107.02 - £97.34) / £97.34] / [148 / 365] = 24.5%
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SteveT
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Post by SteveT on Sept 7, 2016 13:04:37 GMT
1.25%, 1.5%, 1.75%, 2.5% have now been added. And sure enough, there are now parts appearing at 1.25% discount (including 1 of the Power Boat parts)
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