drum
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Post by drum on Dec 3, 2015 8:18:03 GMT
For me I like auctions so that that I can pick my own value and bid at a a rate that I consider to worthwile, until recently this worked well on FC, but as you all know that has now gone fixed rates at much lower rated than I used to get :-( I also like to trade parts, but a key thing for me was if I had a good rate I could sell it at a slight profit, or if I wanted to free some capital, I could drop the rate slight and take a slight hit tot get rid of, but the fixed rates on FC have made this all fairly pointless now.
So I'm looking for a platform that uses the auction model for listing loans, but also allows for some give and take on the secondary market like funding circle does. Anybody got any suggestions??
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bigfoot12
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Post by bigfoot12 on Dec 3, 2015 8:31:41 GMT
Thin Cats is the only one I know of, but:-
£1,000 is the minimum bid;
TC has dynamic bidding (one of its best features) so most people get very close to the maximum bid, great for investors, not so good for flippers;
Secondary market fees are as high as 2.5% (possibly worse see next point);
Secondary market sales hand accrued interest to the purchaser further increasing cost of sale.
Probably not the place for you, but can be a good place to buy units on the secondary market and pick up some accrued interest. TC are about to switch to a new platform - my investments are on hold until then.
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drum
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Post by drum on Dec 3, 2015 8:35:11 GMT
Thin Cats is the only one I know of, but:- £1,000 is the minimum bid; TC has dynamic bidding (one of its best features) so most people get very close to the maximum bid, great for investors, not so good for flippers; Secondary market fees are as high as 2.5% (possibly worse see next point); Secondary market sales hand accrued interest to the purchaser further increasing cost of sale. Probably not the place for you, but can be a good place to buy units on the secondary market and pick up some accrued interest. TC are about to switch to a new platform - my investments are on hold until then. Thanks I'll have a look at TC, but like you say it doesn't sound to be exactly what I was wanting. I admit to flipping a few of my loans on FC, infact my Annualized Return got to just over 19% at one point, now I can't see me hitting much more than 8% with them.
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alanp
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Post by alanp on Dec 3, 2015 9:26:21 GMT
Lending Crowd might be worth a look. Auction style bidding with a Secondary Market.
There is a sub-forum on here.
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drum
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Post by drum on Dec 3, 2015 9:47:00 GMT
Lending Crowd might be worth a look. Auction style bidding with a Secondary Market. There is a sub-forum on here. Thanks I'm already on LendingCrowd I diversified into when they had the offer on this summer\autumn, I like the auction style, but there doesn't seem to be any way to have a "premium\discount" on the secondary market, otherwise it's fairly close.
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jonno
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nil satis nisi optimum
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Post by jonno on Dec 3, 2015 11:31:59 GMT
Hi drum; have you had a look at Rebuilding Society. It has the characteristics you're looking for but it is a bit "Glacial" in its progress on loans.Also there have been some recent question marks over loan quality. I list all my loan parts on the SM at a 5% premium and have reasonable success in selling them over time. Certainly not the "perfect" platform,but might be worth a look. |
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Post by mrclondon on Dec 3, 2015 12:47:21 GMT
drum variable rate loans were how the p2p sector got going, but they don't scale well as the platform's growth accelerates, and are not compatible with the vision most in the sector now have for ISA levels of funds. It is surprising FC persisted with them as long as it did, and the few remaining ones on TC are primarily to allow their dynamic bidding functionality to reduce the load on their servers. Variable rate loans, along with premiums on secondary markets had a place in the early days of p2p, but there is enough demand from lenders that the market distortions they create are no longer worth it. There is a simple choice the platforms need to make at this juncture - either they simplify their offering and go for growth in the retail sector (ISAs), or they restrict their lender base to those who can self-certify as sophisticated or high net worth individuals and offer tools such as variable rate loans and secondary market premiums which in the vast majority of cases lead to underperformance for the majority of lenders whilst profitting a few traders. My general advice to new lenders is to avoid platforms offering variable rate loans or secondary market premiums* as they are not operating in the interest of most lenders, and face an increased risk of being refused full FCA authorisation. * However as always there are exceptions to the rule - the TC secondary market needs premiums to allow any rolled up interest to be valued !
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drum
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Post by drum on Dec 3, 2015 12:58:41 GMT
Hi drum ; have you had a look at Rebuilding Society. It has the characteristics you're looking for but it is a bit "Glacial" in its progress on loans.Also there have been some recent question marks over loan quality. I list all my loan parts on the SM at a 5% premium and have reasonable success in selling them over time. Certainly not the "perfect" platform,but might be worth a look. I remember vaguely look at RS when it first started, at the time I considered it not a good in comparison to FC however things have changed significantly since then not least in FC offerings.
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drum
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Post by drum on Dec 3, 2015 13:00:44 GMT
drum variable rate loans were how the p2p sector got going, but they don't scale well as the platform's growth accelerates, and are not compatible with the vision most in the sector now have for ISA levels of funds. It is surprising FC persisted with them as long as it did, and the few remaining ones on TC are primarily to allow their dynamic bidding functionality to reduce the load on their servers. Variable rate loans, along with premiums on secondary markets had a place in the early days of p2p, but there is enough demand from lenders that the market distortions they create are no longer worth it. There is a simple choice the platforms need to make at this juncture - either they simplify their offering and go for growth in the retail sector (ISAs), or they restrict their lender base to those who can self-certify as sophisticated or high net worth individuals and offer tools such as variable rate loans and secondary market premiums which in the vast majority of cases lead to underperformance for the majority of lenders whilst profitting a few traders. My general advice to new lenders is to avoid platforms offering variable rate loans or secondary market premiums* as they are not operating in the interest of most lenders, and face an increased risk of being refused full FCA authorisation. * However as always there are exceptions to the rule - the TC secondary market needs premiums to allow any rolled up interest to be valued ! That's a very interesting point of view, and it's most probably right and the reasons that FC changed their offerings. If it is right then mostly like my way of investing has had it's time, and it's time for me to change up my game and modernise.
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nick
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Post by nick on Dec 3, 2015 15:36:44 GMT
As mentioned above, ReBS is worth looking at. Reasonable deal flow and higher gross interest rates are a plus. The SM is no where near as liquid as FC, but you can generally earn a higher premium on sale than FC. Default rate has been rising, but still reasonable given high gross rates.
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