ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 10, 2016 23:34:15 GMT
savingstream You seem to be implying that you would like to go back to the prefunding system as originally proposed but that was abandoned even before launch (prompting much jundering) as being detrimental to larger investors. Why do you feel that your original argument against a simple bottom up system for all loans are no longer valid? Like adrianc I dont get the comments about a more complicated system. The current system is two systems and the second for the larger loans has qualifying criteria for prebids. Far more complicated compared to everyone gets a pound in their pot until the pot is full or the loan runs out.
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jimc99
Member of DD Central
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Post by jimc99 on Feb 10, 2016 23:41:01 GMT
The "bottom up" approach for me please.
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SteveT
Member of DD Central
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Post by SteveT on Feb 10, 2016 23:43:22 GMT
I agree. Leave the system alone until the next wave of loans has gone live and then review how things have gone.
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sam i am
Member of DD Central
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Post by sam i am on Feb 11, 2016 1:58:40 GMT
Which is "simpler"? Two systems for pre-funding, split at an arbitrary and fairly low value? Or one consistent system for pre-funding? Percentages got RIDICULOUSLY gamed - yet they're still in place for £1m+ loans. TBH, I wish that savingstream hadn't said there's plenty of PF in place for these - it just increases the likelihood of gaming. Or they could be bluffing to increase the funding... 
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ablender
Member of DD Central
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Post by ablender on Feb 11, 2016 6:55:55 GMT
Which is "simpler"? Two systems for pre-funding, split at an arbitrary and fairly low value? Or one consistent system for pre-funding? Percentages got RIDICULOUSLY gamed - yet they're still in place for £1m+ loans. TBH, I wish that savingstream hadn't said there's plenty of PF in place for these - it just increases the likelihood of gaming. Or they could be bluffing to increase the funding... So are you ready to reduce your pre-funding level to leave more to us?
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sam i am
Member of DD Central
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Post by sam i am on Feb 11, 2016 9:35:05 GMT
Or they could be bluffing to increase the funding... So are you ready to reduce your pre-funding level to leave more to us? I currently have no pre-funding for the Bedfordshire farm and I don't expect to change that position before launch even though I have a significant sum sitting in cash after the recent repayment. But I do expect to be active on the SM when the loans go live. It's not because I have doubts about the loan, it's just the way I prefer to operate.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Feb 11, 2016 9:46:32 GMT
So are you ready to reduce your pre-funding level to leave more to us? I currently have no pre-funding for the Bedfordshire farm and I don't expect to change that position before launch even though I have a significant sum sitting in cash after the recent repayment. But I do expect to be active on the SM when the loans go live. It's not because I have doubts about the loan, it's just the way I prefer to operate. I'm relatively new to SS, so maybe my own strategy is flawed; but surly because the interest is paid out to SS in advance there is no initial risk on any of the pipeline loans. Don’t get me wrong, I do my own DD on all the loans I have, but it is for future reference so I know which one to get rid of (when they only have 100 days remaining), and which ones I’m more comfortable keeping for longer.
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ben
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Post by ben on Feb 11, 2016 10:16:14 GMT
I currently have no pre-funding for the Bedfordshire farm and I don't expect to change that position before launch even though I have a significant sum sitting in cash after the recent repayment. But I do expect to be active on the SM when the loans go live. It's not because I have doubts about the loan, it's just the way I prefer to operate. I'm relatively new to SS, so maybe my own strategy is flawed; but surly because the interest is paid out to SS in advance there is no initial risk on any of the pipeline loans. Don’t get me wrong, I do my own DD on all the loans I have, but it is for future reference so I know which one to get rid of (when they only have 100 days remaining), and which ones I’m more comfortable keeping for longer. You are right that there is no initial risk as the interest is paid in advance and at the moment the secondary market is active but will it be so much in a few months times? You may find that you are unable to get rid of them in the future. I think the current activity on the secondary market has put a lot of people into a false sense of security as they see everything selling within a second or two so buy more then they would normally with the intention of selling it on, this strategy might work if demand remains the same or you may end up with owning more of a loan then you want and can not get rid of. At the moment nobody has lost a penny on SS but if this changes then the activity on the secondary market will probably change significantly.
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Post by Deleted on Feb 11, 2016 10:36:05 GMT
Fascinated to see that SS seems to be offering an income stream based on carrot sales.... Ah well, bocca al lupo, as they say  |
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Feb 11, 2016 10:36:15 GMT
I'm relatively new to SS, so maybe my own strategy is flawed; but surly because the interest is paid out to SS in advance there is no initial risk on any of the pipeline loans. Don’t get me wrong, I do my own DD on all the loans I have, but it is for future reference so I know which one to get rid of (when they only have 100 days remaining), and which ones I’m more comfortable keeping for longer. You are right that there is no initial risk as the interest is paid in advance and at the moment the secondary market is active but will it be so much in a few months times? You may find that you are unable to get rid of them in the future. I think the current activity on the secondary market has put a lot of people into a false sense of security as they see everything selling within a second or two so buy more then they would normally with the intention of selling it on, this strategy might work if demand remains the same or you may end up with owning more of a loan then you want and can not get rid of. At the moment nobody has lost a penny on SS but if this changes then the activity on the secondary market will probably change significantly. Yes, but the SM situation isn’t going to go from being ‘stupid liquid’ to stagnant over night! I do agree with wat you say, and that is why I do carry out DD on all the loans; but if I leave it until there only 100 days left on the loan, I can’t see any situation where I’ll be unable to sell the loan on the SM before anything bad happens to the loan. Also; I do have a fair bit invested in SS, and as such I’m keen on keeping a close eye on the situation of SS, the SM & individual loans; and any hint that the SM looks to be becoming less liquid because of any negative factors of the above, I would definitely change my strategy. I suppose what I’m trying to say with my initial post; as things stand, and with some good assumption that the SM is going to remain relatively liquid, there seems little reason not to invest in new pipeline loans, regardless any risk they currently hold.
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sam i am
Member of DD Central
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Post by sam i am on Feb 11, 2016 10:38:46 GMT
I currently have no pre-funding for the Bedfordshire farm and I don't expect to change that position before launch even though I have a significant sum sitting in cash after the recent repayment. But I do expect to be active on the SM when the loans go live. It's not because I have doubts about the loan, it's just the way I prefer to operate. I'm relatively new to SS, so maybe my own strategy is flawed; but surly because the interest is paid out to SS in advance there is no initial risk on any of the pipeline loans. Don’t get me wrong, I do my own DD on all the loans I have, but it is for future reference so I know which one to get rid of (when they only have 100 days remaining), and which ones I’m more comfortable keeping for longer. I'm not avoiding this one because I perceive it to have any greater risk than I would expect on any other 12% loan. I'm not pre-funding it because it is a huge loan and I prefer the smaller ones (although my definition of smaller is gradually increasing). We don't have any historic experience of a £7m loan launch on SS, so it's difficult to judge how it will fill and what the market in the loan will be like after launch. Maybe with the increased popularity of SS and repaid cash sitting about, it might be oversubscribed. But it wasn't long ago when PBL59, 60 and 61 were launched that SS had to offer CB to get them filled. Either way, if I want some of this loan, I'm reasonably sure that I'll be able to pick up what I want on the SM later. In the meantime I will use my funds to pick up a broad spread of loan parts that I expect to hit the SM when this one goes live. This is just my approach. Others will have a different approach.
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ben
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Post by ben on Feb 11, 2016 10:49:04 GMT
I think that since the cashback was offered SS has increased in size the last big loan was bigger then them and although took a week or two to fill it did.
But agree there will be plenty of activity on the secondary market and yes the secondary market probably will not change until one or two fail to pay back so be a good while yet
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Feb 11, 2016 10:51:08 GMT
I'm relatively new to SS, so maybe my own strategy is flawed; but surly because the interest is paid out to SS in advance there is no initial risk on any of the pipeline loans. Don’t get me wrong, I do my own DD on all the loans I have, but it is for future reference so I know which one to get rid of (when they only have 100 days remaining), and which ones I’m more comfortable keeping for longer. I'm not avoiding this one because I perceive it to have any greater risk than I would expect on any other 12% loan. I'm not pre-funding it because it is a huge loan and I prefer the smaller ones (although my definition of smaller is gradually increasing). We don't have any historic experience of a £7m loan launch on SS, so it's difficult to judge how it will fill and what the market in the loan will be like after launch. Maybe with the increased popularity of SS and repaid cash sitting about, it might be oversubscribed. But it wasn't long ago when PBL59, 60 and 61 were launched that SS had to offer CB to get them filled. Either way, if I want some of this loan, I'm reasonably sure that I'll be able to pick up what I want on the SM later. In the meantime I will use my funds to pick up a broad spread of loan parts that I expect to hit the SM when this one goes live. This is just my approach. Others will have a different approach. Good strategy; I like it, in fact I might nick it  Actually there is a question to be asked here; I wonder, taking in to consideration the conceived higher risk, what rates other (variable rate) p2p platforms would offer this loan at?
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Post by goldservice on Feb 11, 2016 11:18:03 GMT
----- .-.-.- ----- .---- / .--. . -. -.-. . / .. -. / ... ..- .--. . .-. -.-- .- -.-. .... - / .--. .-.. . .- ... .
How could you buy 0.01p of anything?
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Feb 11, 2016 11:25:18 GMT
----- .-.-.- ----- .---- / .--. . -. -.-. . / .. -. / ... ..- .--. . .-. -.-- .- -.-. .... - / .--. .-.. . .- ... . How could you buy 0.01p of anything? I'm very slowly buying every penny in the hope that the loan defaults and they just give me the yacht 
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