shshsh
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Post by shshsh on Feb 22, 2016 15:10:59 GMT
So suppose you had £25,000 in SS, how many loans would you seek to distribute this over? I saw Schwarzenegger mentioned he liked £600 max, I think.
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Liz
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Post by Liz on Feb 22, 2016 15:17:20 GMT
At least 30.
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webwiz
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Post by webwiz on Feb 22, 2016 15:17:40 GMT
As many as possible. However you will need to work towards max diversification so start with as many as you can get and gradually sell parts to buy new loans as they come up.
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cooling_dude
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Post by cooling_dude on Feb 22, 2016 15:52:55 GMT
So suppose you had £25,000 in SS, how many loans would you seek to distribute this over? I saw Schwarzenegger mentioned he liked £600 max, I think. I think you should get your own strategy! I have £30,000 (in my personal account), and I'm aiming for having no individual investment over £1000. I'm slowly approaching that target. After I do reach that target I will start to adjust each investment according to my own DD.
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Balder
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Post by Balder on Feb 22, 2016 15:57:48 GMT
I don't think it really matters as you can reduce your holding in any loan as it nears repayment, if/when the SM slows then you may need to re-think.... This only applies when interest is in the bank so to speak as it is with SS loans.
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registerme
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Post by registerme on Feb 22, 2016 16:01:58 GMT
Except that for more recent loans, and all new loans, you are now directly exposed to the borrower, rather than to Lendy Ltd. Having all your eggs in one basket is unwise.
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Post by GSV3MIaC on Feb 22, 2016 16:13:59 GMT
'As many as possible' has to make sense, unless you have a fully operational crystal ball and can always pick winners ("I picked a really good horse at Cheltenham .. took 7 other horses to beat him"). Personally I'd rather have £100 in 10 overdue loans and £1k in the newest, than to have all £2k in the newest. I guess there are about 50 'SS places' to consider, when you (at least partially) consolidate loans which are to the same person/company (not withstanding the fact they have separate securities), so for £25k that'd be £500 on each, or maybe £750 on the newer and £250 on the elderly. Roll your own magic allocation algorithm. 8>.
Apart from anything else, you're going to be annoyed/embarrassed if you put all £25k on this wonderful bulletproof loan, only to have it repaid and discover you can't find a good place to put the proceeds for some long period.
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Post by sunspot on Feb 22, 2016 16:23:15 GMT
... I have £30,000 (in my personal account), and I'm aiming for having no individual investment over £1000. I'm slowly approaching that target. After I do reach that target I will start to adjust each investment according to my own DD. That's more or less my strategy too, although there are some loans that I'm happy to bid higher on, and some lower. It's also worth bearing in mind that some properties have two loans. In this case, I tend to treat them as one, and aim to split my investment - although that's easier said than done!
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 22, 2016 18:48:40 GMT
... I have £30,000 (in my personal account), and I'm aiming for having no individual investment over £1000. I'm slowly approaching that target. After I do reach that target I will start to adjust each investment according to my own DD. That's more or less my strategy too, although there are some loans that I'm happy to bid higher on, and some lower. It's also worth bearing in mind that some properties have two loans. In this case, I tend to treat them as one, and aim to split my investment - although that's easier said than done!
I Quite agree. I only invested a total of £1000 in the 4 Bedfordshire loans for example (however slightly skewed it towards the 2 tranches with properties on).
shshsh; I didn't realise when I was replying to your post (on my tiny mobile phone  ), that you are a new forum user, and presumably new to SS. I must add to my post that I don't think that it is a bad thing to have more money invested in less loan when your starting off; infact ATM it's vital! However as time goes on, and more prefunding loans materialise, diverserfy and sell the investments that look less appealing (I.e. do your DD on each loan that you hold).
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Post by highlandtiger on Feb 23, 2016 19:15:38 GMT
That's more or less my strategy too, although there are some loans that I'm happy to bid higher on, and some lower. It's also worth bearing in mind that some properties have two loans. In this case, I tend to treat them as one, and aim to split my investment - although that's easier said than done!
I Quite agree. I only invested a total of £1000 in the 4 Bedfordshire loans for example (however slightly skewed it towards the 2 tranches with properties on).
shshsh ; I didn't realise when I was replying to your post (on my tiny mobile phone ), that you are a new forum user, and presumably new to SS. I must add to my post that I don't think that it is a bad thing to have more money invested in less loan when your starting off; infact ATM it's vital! However as time goes on, and more prefunding loans materialise, diverserfy and sell the investments that look less appealing (I.e. do your DD on each loan that you hold).
When I first started with SS in September, all my cash was in 4 loans, over time thanks to the prefunding and the SM, I've managed to spread my cash out over 22 loans now. I'm more than happy with that situation.
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beechside
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Post by beechside on Feb 23, 2016 19:30:00 GMT
I have my money in 33 separate PBLs (a number that can grow as new loans come to market). However, my money is far from evenly spread. I put more in the following: - Longer loans - Lower LTVs - Larger loans - Lower apparent risk - Lower complexity propositions These should be self explanatory but I'll expand on one, if I may. Let's say there are two loans: one of £5000 and the other of £500000. I wouldn't put £1000 in the former but would in the latter. I don't want to be exposed to 20% of any loan, even if the absolute value is the same. Instead, I might limit myself to, say, 1% of any loan. Having said that, I have a couple of favourite loans that I'll buy anything that's going. Not going to tell you what they are, though  |
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Post by jackpease on Feb 23, 2016 19:37:25 GMT
The danger is that if the newer loans catch a cold/secondary market confidence collapses before someone diversifies. Looking at some of the recent parts put on the secondary market today, there are some eyewateringly large chunks people have held and now dumping - it is a hell of a risk to take even if only 'temporary'. The switch of risk from Lendy to the borrower makes this increasingly important.
Jack P
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mikes1531
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Post by mikes1531 on Feb 23, 2016 19:54:26 GMT
The danger is that if the newer loans catch a cold/secondary market confidence collapses before someone diversifies. Looking at some of the recent parts put on the secondary market today, there are some eyewateringly large chunks people have held and now dumping - it is a hell of a risk to take even if only 'temporary'. The switch of risk from Lendy to the borrower makes this increasingly important. Without knowing all the details, jackpease may be jumping to a conclusion. If the seller of those large parts has a very large investment in SS, the seemingly large parts may be only a small proportion of their total investment, so their overall diversification might not be a problem.
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Post by sunspot on Feb 23, 2016 21:19:23 GMT
That's pretty good going if you're happy with the distribution as well.
I'm currently invested in about 20 loans, but I'd only give myself about 6/10 for the spread so far. Also, more than 10% of the total falls completely outside the criteria I'm now using, and will have to sold off at some point. But I'm loath to cash these in just yet for obvious reasons.
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LittleBear
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Post by LittleBear on Feb 23, 2016 21:35:16 GMT
This has prompted me to have a look at my book. I find that I'm invested in 45 separate loans, all with a minimum of 56 days remaining. I sold out of some shorter time remaining loans this morning to fund other purchases. I have a maximum 'per loan' that I am willing to invest. I'm happy with my spread, except that I am over-invested with a couple of borrowers where they have multiple loans. As new loans are launched, I will sell these down to my maximum.
I started investing in SS on 30th September last year, so it is certainly possible to build a diversified holding over the space of a few months.
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), that you are a new forum user, and presumably new to SS. I must add to my post that I don't think that it is a bad thing to have more money invested in less loan when your starting off; infact ATM it's 
