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Post by Deleted on Feb 1, 2016 10:21:50 GMT
After making some initial, concentrated investments, I'm now looking to sell down some of my concentrated loan positions to bid on new loans as they come on the platform. However, after putting up a number of loan parts for sale last week, none have yet sold. What are other people's experience of secondary liquidity, particularly post £100 promotion? My direct experience is negative. The liquidity is not zero (as I have sold several loan slices in the past 2-3 months). But it is simply impossible to understand what is happening. Given some loans sold (and rather quickly) and some others with similar characteristics and interest doe not sell, i can only guess that LendingCrowd is 'stealing' spaces on some of them and not allowing any sale until their underwriters get rid of everything. In particular with two loans, echochic and sortmypc, I have normal parts on sale (20/40 GBP slices) at top rate and these have been out on sale for months without any success. Thinking also to a potential bug I even have attempted all combinations (on/off, one slice only, all slices together, few slices at a time), but things have not changed...
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nick
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Post by nick on Feb 1, 2016 12:58:46 GMT
After making some initial, concentrated investments, I'm now looking to sell down some of my concentrated loan positions to bid on new loans as they come on the platform. However, after putting up a number of loan parts for sale last week, none have yet sold. What are other people's experience of secondary liquidity, particularly post £100 promotion? My direct experience is negative. The liquidity is not zero (as I have sold several loan slices in the past 2-3 months). But it is simply impossible to understand what is happening. Given some loans sold (and rather quickly) and some others with similar characteristics and interest doe not sell, i can only guess that LendingCrowd is 'stealing' spaces on some of them and not allowing any sale until their underwriters get rid of everything. In particular with two loans, echochic and sortmypc, I have normal parts on sale (20/40 GBP slices) at top rate and these have been out on sale for months without any success. Thinking also to a potential bug I even have attempted all combinations (on/off, one slice only, all slices together, few slices at a time), but things have not changed... That's a shame. Lets hope they address the concerns regarding the transparency of the SM, and more importantly for the long term success of the platform, SM liquidity. Without this, I am uncomfortable in deploying urther funds onto the platform beyond my currently 'dip my toe in' which was initially driven by the promotional rewards on offer. If they can address the SM liquidity and transparency, my investment on the platform could easily be ten/hundred fold higher (not only from confidence that I would have that I could realise some of my investment quickly if I needed the cash, but confidence that the platform will attract sufficient investors to be viable in the longer term) given the rest of the platform appears to be well laid out and operates well. One positive outcome the existence of a connected underwriter is that hopefully underwriting standards will be maintained as pressure to originate loans increases, which hopefully will translate to reasonable loan performance in the long run........
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Post by Deleted on Feb 2, 2016 18:17:24 GMT
for a start LendingCrowd could publish a list of all sales done for each loan on the secondary market (maybe with asterisks not to reveal the full name, a bit like SS is doing).
This means openness and the chance to let people understand what is going on (e.g. if I see a continuous stream of sales for the loan I am attempting to sell and see no movements on my parts I know things are not correct)
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min
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Post by min on Feb 3, 2016 10:42:06 GMT
In order to reduce my exposure to some loans I put 7 loan parts up for sale at the weekend (7 different loans). All around the £20 mark. 3 have sold so far so there is some liquidity. I do like the fact that I get an email telling me a part has sold. Much easier to understand what's going on - unlike Flighty Chickens.
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Post by Deleted on Feb 10, 2016 10:07:00 GMT
In order to reduce my exposure to some loans I put 7 loan parts up for sale at the weekend (7 different loans). All around the £20 mark. 3 have sold so far so there is some liquidity. I do like the fact that I get an email telling me a part has sold. Much easier to understand what's going on - unlike Flighty Chickens. Could you and anyone selling parts write the loan title of those parts selling? My parts of sortmypc and echochic simply don't sell even if I have the top possible rate for the respective band (many months on the secondary market now!)
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min
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Post by min on Feb 10, 2016 10:16:14 GMT
Have sold parts of:
P**dlp*d
W*nw**ks
B**c*n
B**c*ns*de
K*r*b*r
in the last week
Ang*l*s and D*n*m*c parts still up for sale
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adrianc
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Post by adrianc on Feb 10, 2016 10:54:34 GMT
Could you and anyone selling parts write the loan title of those parts selling? Don't be too explicit about it. It's verboten under the forum rules to name borrowers, remember? Just get creative with the asterisks... Have sold parts of: Poo*****d W*****ks ***con B**con*** ****bar in the last week An***os and D***m*c parts still up for sale You might like to de-identify the borrowers there, too. I've got a part of Aq***ife which is on the SM and lingering, but some of it did go, while some of V***o In****i went fairly quickly,
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nick
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Post by nick on Feb 15, 2016 10:29:51 GMT
Well I yet to sell any loan part out of 20 i've listed over 4 loans. My conclusion is that liquidity is very limited and I'm going to be stuck with my highly concentrated portfolio for some time if not to maturity or default........
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SteveT
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Post by SteveT on Feb 15, 2016 14:40:08 GMT
I had one sell on Saturday, the first for at least 6 weeks!
[Not one penny more is going into LC until / unless they have a fundamental rethink of their SM. It's not rocket science: they just need to copy Faintly Comical's]
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ablender
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Post by ablender on Feb 15, 2016 15:48:23 GMT
I had one sell on Saturday, the first for at least 6 weeks! [Not one penny more is going into LC until / unless they have a fundamental rethink of their SM. It's not rocket science: they just need to copy Faintly Comical's] I agree with you and have stopped all new money allocation to LC. Also I am really annoyed by the fact that I could not sell the SAC after they paid. Now it is late again. lendingcrowd , am I going to be trapped in this loan till it defaults? The borrower might be paying late on purpose to eliminate the chance for lenders to move to other loans. What is lendingcrowd doing about this?
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TheDriver
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Slightly bonkers
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Post by TheDriver on May 14, 2016 20:21:57 GMT
The borrower might be paying late on purpose to eliminate the chance for lenders to move to other loans. What is lendingcrowd doing about this?
OoI, what would be the point? Once the loan is running it doesn't matter who holds them, they aren't traded to reflect corporate value, and if no-one wants to buy the unfortunate holder is stuck with it!
But back on topic, does the cost of what is effectively one or two weeks interest as commission really discourage selling? Interest is payable until sold, and once it's in cash there is no interest being received; the timing of a sale is unpredictable (as on most platforms) and as discussed elsewhere can't be influenced by the seller - which I think is the real issue.
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