twoheads
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Post by twoheads on May 10, 2017 14:36:49 GMT
Tranche 8 just went live (15:35).
EDIT - I'm assuming that the tranche was fully prefunded because there was no significant change in the value available on the SM when this tranche went live.
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sqh
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Post by sqh on May 10, 2017 15:02:13 GMT
It looks as though the max allocation for Tranche 8 was £1025.
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acky
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Post by acky on May 10, 2017 15:03:40 GMT
To calm people's nerves can I just add to the above that a medium hitter has just taken a 20K chunk out of its sister loan DFL002 which was also very hard to shift on the secondary market. Suddenly in one bite it has become one of the biggest movers and groovers of the day. The good thing about this is that when others see the activity tab and see that somebody has eagerly grabbed 20K in one go they think they better be grabbing some too. I have worked out that the herd mentality is alive and well on the secondary market. Unfortunately 5 hours later, that £20k is still the most recent purchase of DFL002. It helps, but I'm still a long way back in the queue on this one.
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vmail
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Post by vmail on May 10, 2017 15:06:27 GMT
Two more like this and I will be at the front of the queue.
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mikes1531
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Post by mikes1531 on May 10, 2017 21:03:20 GMT
It looks as though the max allocation for Tranche 8 was £1025. That's a rather large maximum allocation for a £251k tranche. I'm somewhat surprised, however, that it wasn't even higher or had no maximum at all. The fact that there was a maximum allocation means there were people who pre-funded more than they were allocated. If they really wanted more that they were given, why didn't they buy some of what was available on the SM? Might they have done it just so they could earn a day or two of interest before having to pay for their parts? (On the maximum allocation that would be the princely sum of 34p/day.) Or was some of that pre-funding 'accidental', won't be paid for, and Lendy will have to cancel some of those allocations?
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GeorgeT
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Post by GeorgeT on May 10, 2017 21:12:26 GMT
To calm people's nerves can I just add to the above that a medium hitter has just taken a 20K chunk out of its sister loan DFL002 which was also very hard to shift on the secondary market. Suddenly in one bite it has become one of the biggest movers and groovers of the day. The good thing about this is that when others see the activity tab and see that somebody has eagerly grabbed 20K in one go they think they better be grabbing some too. I have worked out that the herd mentality is alive and well on the secondary market. Unfortunately 5 hours later, that £20k is still the most recent purchase of DFL002. It helps, but I'm still a long way back in the queue on this one. Your position should have improved quite a lot since you made this post.
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vmail
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Post by vmail on May 10, 2017 21:48:23 GMT
Yeah, by £39,429.26
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withnell
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Post by withnell on May 11, 2017 8:49:01 GMT
What concerns me on this one is Lendy's ability to leapfrog the SM in order to release additional tranches - I thought from what I had seen previously that they roll together the SM and new funds then allocated them off to investors (hence DFL012 & DFL005 having zero on the SM just after tranche launch yesterday, even though they both had a constant queue of at least 20k prior)
For DFL001, I am still c. 187k back in the queue, despite Lendy releasing a further 250k odd of loan. Surely the new funds should sit behind those already up for sale, and therefore the allocation to prefunders should have come from clearing the SM first?
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vmail
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Post by vmail on May 11, 2017 9:17:22 GMT
What concerns me on this one is Lendy's ability to leapfrog the SM in order to release additional tranches - I thought from what I had seen previously that they roll together the SM and new funds then allocated them off to investors (hence DFL012 & DFL005 having zero on the SM just after tranche launch yesterday, even though they both had a constant queue of at least 20k prior) For DFL001, I am still c. 187k back in the queue, despite Lendy releasing a further 250k odd of loan. Surely the new funds should sit behind those already up for sale, and therefore the allocation to prefunders should have come from clearing the SM first? Are you sure it's a constant queue? It's most likely new loan parts are put up for sale as existing ones are sold. The additional tranches would be part of the original loan agreement and to also protect Lendy incase if the borrow takes all of the money and runs, just like FF in Belfast did (AC lone). By staggering the additional tranches it would end up cheaper for the borrower and it would indicate Lendy are happy with the progress. Prefund do not come from the SM, the prefund is a new part of the loan. Those who did not get their max allocation in the prefund have the option to buy the additional parts from the SM. It's not an automatic thing. For me, DFL001 has moved by £11,642.00 since midnight and now I'm at about £30k. It does not appear that new funds are in front of loan parts that are already up for sale as you stated.
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withnell
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Post by withnell on May 11, 2017 11:58:54 GMT
Sorry to be blunt, but... No. SM = Secondary Market. Secondary.The platform isn't here to prioritise incidental lender-lender trading on the SM (especially as it derives no income from that activity), the platform exists to service its' revenue source - borrowers. The borrower needs a further £250k, the platform launches a new tranche. The lender can choose whether they purchase on the PM or the SM. The platform hasn't pushed one in front of the other. (Although INPL may encourage lenders to favour the PM over the SM.) If the platform were to have a policy of clearing the SM before allowing take up of the new tranche, they'd effectively be guaranteeing that existing lenders can sell at any time whilst a DFL loan is still requiring funds. Taking it to an extreme... For DFL001, if all existing lenders wanted to sell at T-1 (being the day before the last tranche was offered) then Lendy would have to be certain it could find £5M+ of new money to buy out the existing lenders before it could raise the money to fill the last tranche requested by the borrower so that said borrower can complete their project and pay back all lenders. That doesn't sound like a viable proposition to me. The secondary market is an integral part of the offering - while it doesn't guarantee liquidity, like a provision fund it is an additional incentive. While they may not profit from it, it is in Lendy's interest to manage the level of the SM so as to not alienate investors and stunt future platform growth. The very fact that the maximum allocation wasn't a round figure implies that at least one person was allocated less than they asked for. Rightly or wrongly, a significant number of investors in the platform set default funding levels for every loan and then pay cash in as requested by emails, so never log on to the SM. It would seem a very reasonable adaptation for Lendy to fulfil these requests in full where secondary market funds are available, thereby keeping both new and SM selling clients happy.
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Post by lendinglawyer on May 11, 2017 12:04:27 GMT
Agree with @new2p2p. I don't think it's necessarily a terrible idea to top-up pre-funding that isn't available from the PM through automated SM purchases though given they rank pari passu so to be honest if you want £5k of a DFL you shouldn't care whether it comes from PM or SM. Although maybe that would mess up (or at least get complex in light of) the "no INPL on SM" thing so it wouldn't work.
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ilmoro
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Post by ilmoro on May 11, 2017 12:14:54 GMT
Sorry to be blunt, but... No. SM = Secondary Market. Secondary.The platform isn't here to prioritise incidental lender-lender trading on the SM (especially as it derives no income from that activity), the platform exists to service its' revenue source - borrowers. The borrower needs a further £250k, the platform launches a new tranche. The lender can choose whether they purchase on the PM or the SM. The platform hasn't pushed one in front of the other. (Although INPL may encourage lenders to favour the PM over the SM.) If the platform were to have a policy of clearing the SM before allowing take up of the new tranche, they'd effectively be guaranteeing that existing lenders can sell at any time whilst a DFL loan is still requiring funds. Taking it to an extreme... For DFL001, if all existing lenders wanted to sell at T-1 (being the day before the last tranche was offered) then Lendy would have to be certain it could find £5M+ of new money to buy out the existing lenders before it could raise the money to fill the last tranche requested by the borrower so that said borrower can complete their project and pay back all lenders. That doesn't sound like a viable proposition to me. The secondary market is an integral part of the offering - while it doesn't guarantee liquidity, like a provision fund it is an additional incentive. While they may not profit from it, it is in Lendy's interest to manage the level of the SM so as to not alienate investors and stunt future platform growth. The very fact that the maximum allocation wasn't a round figure implies that at least one person was allocated less than they asked for. Rightly or wrongly, a significant number of investors in the platform set default funding levels for every loan and then pay cash in as requested by emails, so never log on to the SM. It would seem a very reasonable adaptation for Lendy to fulfil these requests in full where secondary market funds are available, thereby keeping both new and SM selling clients happy. The maximum allocation is always an artificial number as Lendy rounds the sum to a sensible figure and then sticks the residual on the SM, so there are always people who dont get their full allocation. There are probably rules that prevent Lendy from allocating SM funds to PM requests. The lender has made a request against a specific tranche proposal, it is not for Lendy to determine whether they would be happy to take SM sums or not. As I think has been mentioned there are also potential issue with client money with buying on SM as PM purchases dont have to be funded for 48hrs but cash from SM sales can be removed immediately so there is a hole in the client money account which Lendy would have to float and the FCA dont like that. Im afraid if people want more of a loan than they are allocated through Prefund they are going to have to put the cash and the effort into purchasing it.
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withnell
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Post by withnell on May 11, 2017 12:42:27 GMT
The cost to Lendy of funding the INPL interest is minimal in the context of getting new funds onto the platform. A lot of people selling on SM will cycle into other loans, so it's a marketing cost
Main reason I believe SM funds should be allocated prior to new tranches is a lot to do with the general lack of information - for instance I would probably have invested a lot less in DFL001 if I knew that a tranche would be released with less than 3 months to go, the time you'd expect construction to be complete and sales to start exchanging!
As a side point, I would have expected the tranche page to be signposted with the fact that in all probability the loan will overrun, because there is little chance that construction will complete and units exchange in the next 36 days
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vmail
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Post by vmail on May 11, 2017 13:02:16 GMT
The cost to Lendy of funding the INPL interest is minimal in the context of getting new funds onto the platform. A lot of people selling on SM will cycle into other loans, so it's a marketing cost Main reason I believe SM funds should be allocated prior to new tranches is a lot to do with the general lack of information - for instance I would probably have invested a lot less in DFL001 if I knew that a tranche would be released with less than 3 months to go, the time you'd expect construction to be complete and sales to start exchanging! As a side point, I would have expected the tranche page to be signposted with the fact that in all probability the loan will overrun, because there is little chance that construction will complete and units exchange in the next 36 days Erm, assuming people INPL on a SM at £2.7m (assuming all at 12%), it would cost Lendy £887.67 a day. How is that minimal?
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Liz
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Post by Liz on May 11, 2017 13:08:23 GMT
The cost to Lendy of funding the INPL interest is minimal in the context of getting new funds onto the platform. A lot of people selling on SM will cycle into other loans, so it's a marketing cost Main reason I believe SM funds should be allocated prior to new tranches is a lot to do with the general lack of information - for instance I would probably have invested a lot less in DFL001 if I knew that a tranche would be released with less than 3 months to go, the time you'd expect construction to be complete and sales to start exchanging! As a side point, I would have expected the tranche page to be signposted with the fact that in all probability the loan will overrun, because there is little chance that construction will complete and units exchange in the next 36 days Erm, assuming people INPL on a SM at £2.7m (assuming all at 12%), it would cost Lendy £887.67 a day. How is that minimal? And if INPLed £100k of the castle and didn't pay, then LTTP would be left owning the part! This is not allowed by the FCA.
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