jonno
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Post by jonno on Feb 18, 2016 11:42:42 GMT
jonno gusgorilla We have just sent an email notification out to lenders about 2 new loan requests being listed today at 5.30pm. We would have liked to have given more notice but that was not possible for these loans. Moving forward we will provide at least 24 hours notice to lenders. ; what's happened to the 24 hour notice period? I took you at your word and have now found a 4 hour notice period and a fully invested loan. If you'd have set out this as your plan we could then plan accordingly. As you know I've been here more or less from the start but am getting a bit fed up.At the very least could there be some sort of a "mandate" system where at least uninvested funds could be automatically applied to a new loan?
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Post by parag on Feb 18, 2016 12:18:22 GMT
jonno gusgorilla We have just sent an email notification out to lenders about 2 new loan requests being listed today at 5.30pm. We would have liked to have given more notice but that was not possible for these loans. Moving forward we will provide at least 24 hours notice to lenders. ; what's happened to the 24 hour notice period? I took you at your word and have now found a 4 hour notice period and a fully invested loan. If you'd have set out this as your plan we could then plan accordingly. As you know I've been here more or less from the start but am getting a bit fed up.At the very least could there be some sort of a "mandate" system where at least uninvested funds could be automatically applied to a new loan? I understand your frustration and can only apologise. It's to do with the way and timings that loans are passed to us by BLX. We're mindful that lenders are requesting more deals and we are trying very hard to minimise the time between deals. As deal flow increases it will be easier to satisfy all lenders and some of these issues will disappear. It also didn't help that this loan was very small hence it filled very quickly. I appreciate you have been with us and supported us from early on and it really concerns me when our lenders aren't happy. I will make it a priority to improve this process given your feedback and work hard to provide 24 hours notice, as previously promised, whilst balancing all lenders needs and wishes with internal operations.
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Post by parag on Feb 18, 2016 12:33:10 GMT
jonno In regards automatically sweeping lenders available funds into new deals, I can't see the business being comfortable with this. We feel lenders should be able to view individual loan listings and then make an investment decision. I know the compliance team would have some concerns also. For some other models this would work but not for our current model. Nonetheless, I have noted it and will discuss the idea in detail with compliance to make sure our current thinking is correct.
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jonno
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Post by jonno on Feb 18, 2016 12:53:39 GMT
jonno In regards automatically sweeping lenders available funds into new deals, I can't see the business being comfortable with this. We feel lenders should be able to view individual loan listings and then make an investment decision. I know the compliance team would have some concerns also. For some other models this would work but not for our current model. Nonetheless, I have noted it and will discuss the idea in detail with compliance to make sure our current thinking is correct. Thanks parag . I understand your concerns. It was just borne out of frustration of my assumption that going forward, loans would give us 24 hours of notice and DD time which, if introduced would obviate the need for my (probably  ) funding suggestion 
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jonno
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Post by jonno on Feb 18, 2016 13:51:51 GMT
parag; Thank you for the email re tomorrow's loan. Your responsiveness really is much appreciated
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Post by parag on Feb 18, 2016 13:54:58 GMT
parag; Thank you for the email re tomorrow's loan. Your responsiveness really is much appreciated Not a problem, we really appreciate the feedback.
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Post by pepperpot on Mar 4, 2016 18:13:55 GMT
My compliments parag on the latest email notification, a welcome amount of detail and notice. Thank you. |
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ben
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Post by ben on Mar 4, 2016 18:56:15 GMT
Just got notification but can not find it when I log into site, which area do I need to click on to find it?
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Post by pepperpot on Mar 4, 2016 19:01:59 GMT
It's not there yet, but will be under Loan Requests at 5pm tomorrow.
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Post by wildlife2 on Mar 5, 2016 17:07:11 GMT
Filled in just 2 minutes! I only put a small amount in so more lenders could be in it.
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Post by parag on Mar 5, 2016 17:22:36 GMT
@wildlife2 That was very kind of you! We are acutely aware that lender demand for these loans outstrips supply currently. This is a large focus for both us and BLX currently. Their pipeline is increasing with them having a record month this month for proposals. We don't get passed all of their deals but nonetheless this means increased volumes for us based on the percentage they do send us.
That being said, we don't want to compromise loan security for volumes sake. We are proud of our repayment history and loan statistics, albeit on a currently small loan book.
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jfm
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Post by jfm on Mar 5, 2016 18:22:59 GMT
Well the market seems to have changed a lot recently. I don't think the previous auctions are still visible to compare, but this seemed far quicker. Perhaps it is time for parag to address some of the issues of this success with the lender side. One would be to post the loan details in advance of opening the bidding to allow some examination before committing. As the nature of the current model means that lot sizes are small, perhaps a cap on bids in the first 24 hours to enable a wider distribution of the loan? As the immediate borrower is B** would it be desirable to assemble a package of several securities to give a bigger lot size? It also curious that given the primary demand there are quite a few par opportunities on the marketplace. Have all the potential bidders reached their limits in these? An explanation of why the yield on a par loan is so far from the coupon in some cases would also be appreciated. |
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Post by parag on Mar 5, 2016 19:31:57 GMT
jfm
'Well the market seems to have changed a lot recently. I don't think the previous auctions are still visible to compare, but this seemed far quicker.' - It is not possible to see the bid history for originated loans but this was the fastest a loan has filled on the platform to date. 'Perhaps it is time for parag to address some of the issues of this success with the lender side. One would be to post the loan details in advance of opening the bidding to allow some examination before committing.' - This has been coded and will be released as part of the next release in the next couple of weeks. Lenders will be able to login and see the loan listing but the bidding module will be hidden until the loan goes live after the 24 hours notice lenders have recently requested we give them. This is the reason we have also now started to send details out of upcoming loan requests by email 24 hours before the loan is listed as opposed to sending the email once the loan had been listed. 'As the nature of the current model means that lot sizes are small, perhaps a cap on bids in the first 24 hours to enable a wider distribution of the loan?' - This has been discussed internally at great length. The issue should not be so acute once deal flow increases but we will continue to monitor this and implement bid restrictions in the future if needed.
'As the immediate borrower is B** would it be desirable to assemble a package of several securities to give a bigger lot size?' - Again this has been discussed internally but by trying to do this the length of time between loan requests would further increase when we are trying to minimise it currently. This is because we currently list loan requests as we receive them from B**. If we were to wait to 'package' a number of smaller loan requests into a larger one, we would have to wait for a few deals to come from B** which, as stated, would increase the time between loan listings. 'It also curious that given the primary demand there are quite a few par opportunities on the marketplace. Have all the potential bidders reached their limits in these?' - There could be a number of reasons for this, some of which are unknown to us. As I am sure you are aware, lenders adopt varying investment strategies depending on their personal requirements and situation. 'An explanation of why the yield on a par loan is so far from the coupon in some cases would also be appreciated.' - The reason as to why the buyer rate is different to the coupon rate can be down to any premiums / discounts applied and the time in the monthly repayment cycle of the loan that the loan part is purchased in. The fact that buyers pay accrued interest to the seller and then have to wait for the borrower to pay their next monthly repayment does reduce the buyer rate. The closer you purchase a loan part to the borrowers previous repayment, the less impact this has on the buyer rate and the closer it is to the coupon rate. We use the same method to calculate the buyer rate as many other platforms that operate a similar secondary loan marketplace model to ours. Hope this helps. Regards, Parag
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jonno
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Post by jonno on Mar 28, 2016 9:15:10 GMT
Hi parag .Thanks for the advance notice of ABL8305. However the email states a 16.00hr start but the loan website states 17.00hr.
Can you clarify please
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Post by parag on Mar 28, 2016 11:31:32 GMT
jonno Have asked the IT guys and will let you know. It's down to the clocks going forward and as the system and the email provider are linked there seems to be a little confusion between them both!
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) funding suggestion 
