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Post by emoney on May 22, 2014 8:35:18 GMT
It's really interesting, our lower yielding loans i.e. 8% take 2-3 days to fund however our higher yields 10 -15 % are always over subscribed at approval. It appears the crowd in general are seeking out double digit returns and the appetite of the recently announced Peer to Peer Listed fund are looking to acquire loans delivering a spread of 5 -15% yield, that's where we are at eMoneyUnion. We've some exciting developments over the coming weeks so watch the eMoneyUnion space!
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oldgrumpy
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Post by oldgrumpy on May 22, 2014 8:51:03 GMT
It's really interesting, our lower yielding loans i.e. 8% take 2-3 days to fund however our higher yields 10 -15 % are always over subscribed at approval. It appears the crowd in general are seeking out double digit returns and the appetite of the recently announced Peer to Peer Listed fund are looking to acquire loans delivering a spread of 5 -15% yield, that's where we are at eMoneyUnion. We've some exciting developments over the coming weeks so watch the eMoneyUnion space! Thank you for that information. I'm sure Ratesetter investors will take note of their position in the rates tables. Perhaps you could copy it into the dedicated eMoneyUnion pages too. p2pindependentforum.com/thread/460/emoneyunion
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jonbvn
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Post by jonbvn on May 22, 2014 23:08:00 GMT
Yep, my funds arrived and have already gone out at 6%. I also had an early repayment that I've re-lent at 6% so that's a nice bonus. Only £287k currently available on the 5 year market (midnight 22 May) is a worry. Could drive borrowers into the arms of more liquid P2P markets/lenders.
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markr
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Post by markr on May 23, 2014 9:18:11 GMT
Since when, someone who does not understand the system has put on £50k at 5.6% . This has happened every day this week (today it's "only" £14k). If it's the same person every time I reckon they have lent getting on for £100k this week at 5.6% when the market rate has been 5.9% or higher. Ho hum.
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kermie
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Post by kermie on May 23, 2014 9:24:48 GMT
Wouldn't it be nice if RateSetter prompted the lender at the point of offering to say "I know you're trying to offer £x at 5.6%, but do you realise you could lend it out immediately at 5.9%" or something to that effect. Or better still, offer a prediction of how long it would take to loan at 6.0%, and tell you if the wait was likely to be worth the extra 0.1%.
Whether it be 5.6% or 5.9% doesn't make much material difference to those in the queue at 6.0% - but it does encourage others.
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spiral
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Post by spiral on May 23, 2014 10:10:10 GMT
There has to be more to this than meets the eye because AFAIK transferred funds have to be manually placed on market as I have not yet found a way to auto place them as they arrive. To that end (and because these are nice round figures) they cannot be re investments so the lender has to manually place them on market. Whilst doing this it would be quite obvious what the going rate is and what rate would be prudent to lend at.
I can think of a couple of scenarios why this might happen, firstly the money transfer and reinvestment is being carried out by some automated bot but if the person was skilled enough to do that, I would expect the bot to at least query the "going rate". Secondly that RS have linked to some "investor" to help underwrite the market in times of low funds but for some reason, 5.6% is the rate that they are contracted to offer at (maybe in an attempt to drive rates down but ATM rates are so way off of 5.6% that it has no effect.).
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Post by p2plender on May 23, 2014 10:44:35 GMT
Wouldn't it be nice if RateSetter prompted the lender at the point of offering to say "I know you're trying to offer £x at 5.6%, but do you realise you could lend it out immediately at 5.9%" or something to that effect. Or better still, offer a prediction of how long it would take to loan at 6.0%, and tell you if the wait was likely to be worth the extra 0.1%. Whether it be 5.6% or 5.9% doesn't make much material difference to those in the queue at 6.0% - but it does encourage others. Let them offer at what they want. More fool them.
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oldgrumpy
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Post by oldgrumpy on May 23, 2014 10:48:07 GMT
Maybe it's a Zopa expat who doesn't understand the system.
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Post by yorkshireman on May 23, 2014 11:06:04 GMT
Secondly that RS have linked to some "investor" to help underwrite the market in times of low funds but for some reason, 5.6% is the rate that they are contracted to offer at (maybe in an attempt to drive rates down but ATM rates are so way off of 5.6% that it has no effect.). Could it be those “City Boys” again, borrowing to lend at a higher rate elsewhere perhaps??!!
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oldgrumpy
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Post by oldgrumpy on May 23, 2014 11:16:51 GMT
Secondly that RS have linked to some "investor" to help underwrite the market in times of low funds but for some reason, 5.6% is the rate that they are contracted to offer at (maybe in an attempt to drive rates down but ATM rates are so way off of 5.6% that it has no effect.). Could it be those “City Boys” again, borrowing to lend at a higher rate elsewhere perhaps??!! Have some more rhubarb, lad! Any city boy worth his bananas would not lend at 5.6% when he could do it at 5.9-6.0% ....
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Post by yorkshireman on May 23, 2014 12:47:56 GMT
Could it be those “City Boys” again, borrowing to lend at a higher rate elsewhere perhaps??!! Have some more rhubarb, lad! Any city boy worth his bananas would not lend at 5.6% when he could do it at 5.9-6.0% .... I bet he would if he could then lend at say 12% on Saving Stream.
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Post by yorkshireman on May 23, 2014 13:12:23 GMT
Have some more rhubarb, lad! Any city boy worth his bananas would not lend at 5.6% when he could do it at 5.9-6.0% .... I bet he would if he could then lend at say 12% on Saving Stream. Apologies OG, must be t’trouble at t’mill that’s distracted me, I’ve misconstrued the gist of this thread. Of course we’re talking about lending at 5.6% rather than borrowing at 5.6% so collapse of stout party so to speak.
However, I still stand by my comments in the past that RS is open to abuse by borrowers putting in loan requests at low rates in order to trade or lend at much higher rates hence my comments about City Boys. I think I’ll take your advice and have more rhubarb instead of talking it.
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oldgrumpy
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Post by oldgrumpy on May 23, 2014 13:24:47 GMT
yorkshireman Apologies not necessary....though I did wonder whether you had been lunching on the Old Peculier .....
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Post by yorkshireman on May 23, 2014 16:56:50 GMT
yorkshireman Apologies not necessary....though I did wonder whether you had been lunching on the Old Peculier ..... OP is just a little too heavy for me at lunchtime!!
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oldgrumpy
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Post by oldgrumpy on May 23, 2014 17:49:50 GMT
yorkshireman Apologies not necessary....though I did wonder whether you had been lunching on the Old Peculier ..... OP is just a little too heavy for me at lunchtime!! OP is also too heavy for OG at most times! I generally opt for bitters or "golds" 4.3-4.8% abv, percentages I do not even look at when investing rather than imbibing .
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