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Post by chris on Feb 2, 2016 21:11:01 GMT
samford71 - GBBA doesn't take priority over MLIA any more - they're precisely equal now. GEIA still does.
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Post by westonkevRS on Feb 2, 2016 21:44:02 GMT
Ratesetter: +ve: Big platform, well managed, solid risk managementBoom, thank you. That's going straight on my LinkedIn profile....
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Post by westonkevRS on Feb 2, 2016 21:50:05 GMT
Ratesetter (steady state ditto) +ves - provision fund, potentially very easy to use, potentially fire & forget -ves - rate volatility, takes more attention than I'd like, expensive early exits (not that I intend to exit loans early, tho would make me less willing to go for an IFISA as I'd have to increase my holdings more than I might like in order to do so) Word on the ISA street is that you might be able to " bed and breakfast" existing holdings into the ISA wrapper. But nothing is confirmed yet, and there would probably be an admin charge with this (the contracts would have to be converted). Let's see.... no promises though, it'll depend on the fine detail yet to be confirmed by the powers that be.
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jonah
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Post by jonah on Feb 2, 2016 22:00:51 GMT
Ratesetter (steady state ditto) +ves - provision fund, potentially very easy to use, potentially fire & forget -ves - rate volatility, takes more attention than I'd like, expensive early exits (not that I intend to exit loans early, tho would make me less willing to go for an IFISA as I'd have to increase my holdings more than I might like in order to do so) Word on the ISA street is that you might be able to " bed and breakfast" existing holdings into the ISA wrapper. But nothing is confirmed yet, and there would probably be an admin charge with this (the contracts would have to be converted). Let's see.... no promises though, it'll depend on the fine detail yet to be confirmed by the powers that be. Grrr @ admin charges, but the overall concept sounds interesting. As RS is on of my 'probable' ISA platforms I'm awaiting more when it becomes available.
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pom
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Post by pom on Feb 2, 2016 22:35:45 GMT
Ratesetter (steady state ditto) +ves - provision fund, potentially very easy to use, potentially fire & forget -ves - rate volatility, takes more attention than I'd like, expensive early exits (not that I intend to exit loans early, tho would make me less willing to go for an IFISA as I'd have to increase my holdings more than I might like in order to do so) Word on the ISA street is that you might be able to " bed and breakfast" existing holdings into the ISA wrapper. But nothing is confirmed yet, and there would probably be an admin charge with this (the contracts would have to be converted). Let's see.... no promises though, it'll depend on the fine detail yet to be confirmed by the powers that be. Interesting...tho potentially even more useful on some of the platforms where demand outstrips supply! I don't really know what to think about them at the moment, all feels like the details are going to end up very last minute, so am not going to be rushing into anything
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pikestaff
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Post by pikestaff on Feb 3, 2016 9:25:03 GMT
Ratesetter (steady state ditto) +ves - provision fund, potentially very easy to use, potentially fire & forget -ves - rate volatility, takes more attention than I'd like, expensive early exits (not that I intend to exit loans early, tho would make me less willing to go for an IFISA as I'd have to increase my holdings more than I might like in order to do so) Word on the ISA street is that you might be able to " bed and breakfast" existing holdings into the ISA wrapper. But nothing is confirmed yet, and there would probably be an admin charge with this (the contracts would have to be converted). Let's see.... no promises though, it'll depend on the fine detail yet to be confirmed by the powers that be. There are issues with B&B-ing P2P loans as I'm sure you know. The markets are not deep enough or liquid enough to do the B&B in a way that meets HMRC's normal requirements. See this post and the other one referenced therein: p2pindependentforum.com/post/85642/threadHoping the powers that be come up with an accommodation.
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Maestro
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Post by Maestro on Feb 3, 2016 20:12:03 GMT
Funding Secure P Growing fast and I appear to be one of the few who likes the aftermarket - tax planning is something I take seriously and I can use some different formulas in my spreadsheets  I agree with you duck, I happen to like fundingsecure secondary market as well
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JamesFrance
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Post by JamesFrance on Feb 3, 2016 20:49:38 GMT
The sites where I am increasing investment are the ones with good interest rates which have loans available whenever I have cash to invest and where the money will be earning interest immediately. This rules out most of the UK sites available to non residents which seem to be suffering from loan famine now. Thincats has the loans but suffers from draw down delays, late crediting of repayments and other factors resulting in idle cash not always earning interest.
My favorite sites are currently Mintos and Twino which are both expanding rapidly and actually have plenty of loans available every day. This together with default buybacks with full interest makes them very attractive.
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ablender
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Post by ablender on Feb 6, 2016 10:56:24 GMT
Funding Secure P Growing fast and I appear to be one of the few who likes the aftermarket - tax planning is something I take seriously and I can use some different formulas in my spreadsheets I agree with you duck, I happen to like fundingsecure secondary market as well If you would like to refer to FS' SM as tax planning, you are free to do so. I think of it in different terms and thus avoid it.
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james
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Post by james on Feb 8, 2016 0:21:02 GMT
Word on the ISA street is that you might be able to " bed and breakfast" existing holdings into the ISA wrapper. But nothing is confirmed yet, and there would probably be an admin charge with this (the contracts would have to be converted). Let's see.... no promises though, it'll depend on the fine detail yet to be confirmed by the powers that be. That would be a very good thing, in part as a partial counter to the flood of money problem for supply and demand that P2P is likely to face. Good thing for helping to keep markets more stable. The more that can be soaked up by existing loans, the better.
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Post by gusgorilla on Feb 9, 2016 3:09:59 GMT
It would be interesting to hear everybody’s thoughts on why they chose the platforms that they did. Hopefully it will help others new to the game choose which P2P platform is right for them, and might sway others toward new horizons! 1. Which P2P site(s) do you currently invest in & why? Also what don't you like about the current P2P site(s) that you invest in.2. Which P2P site(s) did you previously invest in & why don't you now?One third of my total is outside P2P in S&S trackers. That dipped badly over the last couple of months but should bob up eventually (may take a couple of years). Another third is invested long-term with Wellesley at 7%: excellent for passive investors. The remaining third is in FC, FS, MT, RS, and Z (now nearly empty). I bear a light grudge against FC on finding out (thanks to this forum) that activity by investors on the SM "helped" to concentrate my share of problem loans (my 5-yr return is 5.4% after fees and bad debts) but really my fault for poor homework. I reduced my holding in Z to nearly zero to reinvest with FS and MT. The cost of selling is absorbed fairly quickly by the higher interest. I am not convinced it is necessary to diversify over a large number of platforms as none are immune to market shocks and it is tedious to have to follow them all up. Could you explain the SM activity on FC that caused the light grudge please, or tell me where on this forum to look for details.
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pikestaff
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Post by pikestaff on Feb 9, 2016 7:41:26 GMT
...My favorite sites are currently Mintos and Twino which are both expanding rapidly and actually have plenty of loans available every day. This together with default buybacks with full interest makes them very attractive. Red flag for me. How do they pay for it? The first possibilities that occur to me are burning through equity (what happens when it runs out?) and Ponzi. I'm not suggesting the latter is the case, but I will not go near a platform that does this.
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JamesFrance
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Post by JamesFrance on Feb 9, 2016 8:08:13 GMT
The buybacks work because the interest rates paid by borrowers in eastern Europe are very much higher than the interest paid to us lenders, so allow an adequate spread to cover the defaulters. The loan originators are experienced and successful loan companies who can assess the failure rate.
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james
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Post by james on Feb 9, 2016 8:31:21 GMT
...My favorite sites are currently Mintos and Twino which are both expanding rapidly and actually have plenty of loans available every day. This together with default buybacks with full interest makes them very attractive. Red flag for me. How do they pay for it? The first possibilities that occur to me are burning through equity (what happens when it runs out?) and Ponzi. I'm not suggesting the latter is the case, but I will not go near a platform that does this. Two of the best known, oldest and most respected UK P2P platforms do this, RateSetter and Zopa, charging the borrowers an extra amount on their APR to allow for the anticipated costs of the protection fund that buys back the loan when there is a default. So does MoneyThing on some of their loans via assorted partners like the HP cars where cars having a borrower defaulting are replaced in the security as long as the HP provider is in business, or the pawn store partner that acts similarly. As with the other two, it's funded by charging sufficient interest and/or fees to cover the anticipated costs.
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pikestaff
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Post by pikestaff on Feb 9, 2016 8:48:28 GMT
Red flag for me. How do they pay for it? The first possibilities that occur to me are burning through equity (what happens when it runs out?) and Ponzi. I'm not suggesting the latter is the case, but I will not go near a platform that does this. Two of the best known, oldest and most respected UK P2P platforms do this, RateSetter and Zopa, charging the borrowers an extra amount on their APR to allow for the anticipated costs of the protection fund that buys back the loan when there is a default. So does MoneyThing on some of their loans via assorted partners like the HP cars where cars having a borrower defaulting are replaced in the security as long as the HP provider is in business, or the pawn store partner that acts similarly. As with the other two, it's funded by charging sufficient interest and/or fees to cover the anticipated costs. Not the same thing. RS and Z have provision funds and the support is explicitly limited to the funds. On RS at least (I'm not on Z so I don't know), the size of the provision fund is fully transparent. My concern is with sites that are not transparent and make open-ended promises. Whilst they may be paying for the buybacks out of the spread, it is also possible that they are making unfunded promises that may be met in another way. That greatly adds to the platform risk, regardless of whether they are doing it with their money or ours. And even if they start out with honest intentions, the temptation to use lenders' money may get too much when times are hard.
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