wapping35
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Post by wapping35 on Feb 16, 2016 16:06:02 GMT
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oldgrumpy
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Post by oldgrumpy on Feb 16, 2016 16:17:51 GMT
It will be interesting to see at what rates Zopa will be offering these products to lenders.
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Post by geoffp on Feb 16, 2016 17:08:03 GMT
I would like to see - perhaps from the institutional lenders' data - precisely what returns they have been achieving, as well as the rates the D and E segments borrowed at. I realize that "past performance is no guarantee..."
Also, any serious investors are going to need something better than the new loan book.
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Post by fuzzyiceberg on Feb 16, 2016 17:24:51 GMT
Well I will wait and see what they come up with, and what tools they will provide to manage the new products. I don't think D and E credits fit my personal risk profile for P2P lending, but higher garde non SG may be interesting.
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elgerod
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Post by elgerod on Feb 17, 2016 18:24:53 GMT
Just received email announcing Zopa Access, Zopa Classic and Zopa Plus to be introduced in mid-March to replace existing products. Interest rates will be announced on 1st March 2016. Zopa Plus will include non-Safeguarded D and E rated loans.
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wapping35
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Post by wapping35 on Feb 17, 2016 18:30:37 GMT
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registerme
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Post by registerme on Feb 17, 2016 18:58:42 GMT
Well, that's that then. Re-lending now turned off.
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Post by misotu on Feb 17, 2016 19:14:20 GMT
6-7% on non-Safeguard when they are talking D and E borrowers??
Wow. Good luck with that one Zopa. I'm routinely getting 6.5% on 5-year RS loans with their provision fund.
But of course they've shafted the only product left that I was (reluctantly) prepared to put money into. The best you can get with Safeguard now will be "4-5%" on a blend of loans. Knowing Zopa, that will be 4% or maybe a bit less if you are unlucky in the rates lottery.
I responded to their "research" too, the survey which they are now trumpeting loudly as user feedback to which these three products are a response. Basically no rates were mentioned in the research and their questions were repeated over and over. The only variation was the name of the product - as if that were the key factor. Astonishingly poor and pointless - and speaks volumes about their view of the target market.
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wapping35
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Post by wapping35 on Feb 17, 2016 20:09:31 GMT
Well, that's that then. Re-lending now turned off. It is interesting to note that the email from ZOPA does actually seem to recommend turning re-investment off ? (before the new products are rolled out) .  I also think the name for the fee free exit account (Zopa Access) is a little misleading for newbie investors (no doubt lots of those will arrive with the ISA). A Newbie is likely to confuse Access with "Instant" Access , instead of fee free access (if you can find a buyer for your micro loans, which is far from guaranteed especially if there was a problem / oh and if rates go up you will have to compensate the loan buyer for that via a discount). That said from a marketing perspective I can see advertising the account as an "Access" account will probably look good to Newbie investors. But will the regulator  ??
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registerme
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Post by registerme on Feb 17, 2016 21:00:56 GMT
The amusing thing is that yesterday I decided to exit from RS and concentrate my consumer lending on Zopa. Today's announcement has made me reverse that decision. Ho hum. I just wish it was for positive reasons rather than choosing between least bad options.
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gg
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Post by gg on Feb 17, 2016 22:35:49 GMT
Such a shame to see Zopa implode.
Ratesetter - simply better.
GG
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aju
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Post by aju on Feb 17, 2016 23:52:43 GMT
When I did their survey last week it seemed promising - sadly they can't even get that right,
for me I was hoping there might be more control over loan parameters, size lent etc.
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mikes1531
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Post by mikes1531 on Feb 18, 2016 23:03:08 GMT
Tuesday's blog entry included an interesting comment regarding the Zopa Plus account... This suggests to me that rather than simply allocating a given loan into Zopa Access, Zopa Classic, and Zopa Plus accounts depending on where lenders had the most funds needing investing, Zopa have added yet another layer of complication to their system by declaring individual loans to be Safeguarded or not. (How else would it be possible for borrowers to benefit from a lower upfront fee?) That implies even more lending queues, doesn't it? But what's in it for borrowers? What difference would it make to a borrower whether or not their loan is Safeguarded? (I can't see any.) So Zopa can't give borrowers a choice of whether or not they want to be Safeguarded -- because they'd all choose 'not' so as to have lower upfront fees. Which means Zopa will decide which loans go to Zopa Classic/Access investors and which go to Zopa Plus investors. Does that suggest they'll put nearly all the low-risk loans in Zopa Classic/Access accounts so as to reduce the demand for Safeguard payments? And put nearly all the high-risk loans in Zopa Plus accounts where the investors have indicated they're willing to take all the default risk themselves? IMHO, from Zopa's perspective this looks like a case of 'Heads we win, tails you lose'. Am I missing something? Does anyone else see it differently?
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bugs4me
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Post by bugs4me on Feb 18, 2016 23:16:32 GMT
Tuesday's blog entry included an interesting comment regarding the Zopa Plus account... This suggests to me that rather than simply allocating a given loan into Zopa Access, Zopa Classic, and Zopa Plus accounts depending on where lenders had the most funds needing investing, Zopa have added yet another layer of complication to their system by declaring individual loans to be Safeguarded or not. (How else would it be possible for borrowers to benefit from a lower upfront fee?) That implies even more lending queues, doesn't it? But what's in it for borrowers? What difference would it make to a borrower whether or not their loan is Safeguarded? (I can't see any.) So Zopa can't give borrowers a choice of whether or not they want to be Safeguarded -- because they'd all choose 'not' so as to have lower upfront fees. Which means Zopa will decide which loans go to Zopa Classic/Access investors and which go to Zopa Plus investors. Does that suggest they'll put nearly all the low-risk loans in Zopa Classic/Access accounts so as to reduce the demand for Safeguard payments? And put nearly all the high-risk loans in Zopa Plus accounts where the investors have indicated they're willing to take all the default risk themselves? IMHO, from Zopa's perspective this looks like a case of 'Heads we win, tails you lose'. Am I missing something? Does anyone else see it differently? - I don't think you are missing anything. I've been in run-off mode for a fair old time now and the majority of the loans left are those that were granted an ultra low rate. It seems as though all the higher rate loans which helped the lender average 'boast' have paid early. So whilst that average lender rate may have been accurate it was of course only at the time the loan was originally granted. Appreciate that Zopa cannot prevent early repayments but the reality has turned out different. I had a quick read and there was nothing there - such as the opportunity of setting your own rate, etc that I could see. So until that happens I'm not prepared to take my chances and hand over funds to an algorithm that to this day I don't feel anyone outside of Zopa really understands.
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wapping35
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Post by wapping35 on Feb 19, 2016 8:04:23 GMT
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??
