Post by marek63 on Dec 8, 2015 19:12:51 GMT
SS - 12% but starting to worry a little about their ability to manage a default recovery process on the larger (1m-4m) building projects if something difficult happens. They would be left at the end of a second charge in some cases with investor exposure significantly larger than the provision fund. Loan book growth at this speed comes at a cost; the underlying manpower for underwriting, management and ongoing loan monitoring will need some major overhauls soon to maintain my confidence.
TC - 10% plus, but very very significant independent diligence is needed to review companies, management and track records before investing. There is some dead time while legals are tied down, but avoiding startups, turnarounds and certain sponsors and checking sponsor promises on drawdown times is important. No losses for me so far here, and a major vote of confidence with the new ESF investment. BUT Investing £1000 in every TC loan is guaranteed to give you defaults - some of the loans are really a gamble. So it is hard to build up a diversified low risk portfolio rapidly. There are some excellent borrowers on TC, but you have to wait for them to come along. And if you don't have a spare 50k to invest then it is not the place to be. IMHO of course.
AC - Turbines plus trade finance, 9.8% but no new investments for the last six months. Platform seems excellent, deal flow is non-existent.
Played with:
Bondora - ran away after losing 80 Euros. There is a strategy that works I am told, but it requires too much babysitting
Ablrate - Slow deal flow but getting there
MT - too small so far
emoneyunion - too small so far
Avoided the consumer type platforms and the low rate property platforms.
Never liked FC as not enough transparency
Heard good things about Funding Knight from borrowers but rates always seem low for good security
TC - 10% plus, but very very significant independent diligence is needed to review companies, management and track records before investing. There is some dead time while legals are tied down, but avoiding startups, turnarounds and certain sponsors and checking sponsor promises on drawdown times is important. No losses for me so far here, and a major vote of confidence with the new ESF investment. BUT Investing £1000 in every TC loan is guaranteed to give you defaults - some of the loans are really a gamble. So it is hard to build up a diversified low risk portfolio rapidly. There are some excellent borrowers on TC, but you have to wait for them to come along. And if you don't have a spare 50k to invest then it is not the place to be. IMHO of course.
AC - Turbines plus trade finance, 9.8% but no new investments for the last six months. Platform seems excellent, deal flow is non-existent.
Played with:
Bondora - ran away after losing 80 Euros. There is a strategy that works I am told, but it requires too much babysitting
Ablrate - Slow deal flow but getting there
MT - too small so far
emoneyunion - too small so far
Avoided the consumer type platforms and the low rate property platforms.
Never liked FC as not enough transparency
Heard good things about Funding Knight from borrowers but rates always seem low for good security
