mikes1531
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Post by mikes1531 on Apr 7, 2016 18:41:28 GMT
Given the amount of activity on the SM it wouldn't take long for the PF to show a healthy improvement in available funds. IMHO such an improvement is badly needed, especially as we are seeing more and more loans in the multi millions. I wonder if SS would be able to run the data and see just how much would have been added to the PF over the past 12 months if the sales interest had been added. I agree that the PF should be allowed to grow over time and not simply stay at 2% of the loan book, with the £££ amount in the Fund reducing every time a loan is paid off. I also agree that interest shouldn't be paid on parts for sale, as people cancelling loans before midnight and re-listing them after midnight would help move those who forego a day's interest forward in the selling queue, and that would help liquidity for those who really want/need to sell parts. I'd would be happy if the interest not paid on 'for sale' parts were to be put toward the PF, but I don't think "it wouldn't take long for the PF to show a healthy improvement in available funds" as freddy has suggested above. What's the average amount of parts for sale at midnight? There's about £400k for sale at the moment, but let's be generous and say it has averaged £1M recently. If that average were to be sustained for a month it would mean £10k of interest not paid. That pales in comparison to the £1.97M in the PF now. And for most of the past year there has been a lot less than £1M on the SM at midnight, so I'd guess that the interest not paid over the past 12 months probably would be unlikely to exceed £30k. Every little bit helps, but I don't see this as being a big contributor to the PF. A much bigger help to the PF would be if savingstream stopped taking money out of the PF every time a loan repaid.
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Post by johnnysaver on Apr 8, 2016 16:25:50 GMT
The ability to cancel a sale whilst only part sold will be in place very soon.
We are going to show the amount for sale in front of you in the queue as well so you can make a more informed decision about selling/cancelling the sale.
Interest will be earned whilst loan parts are for sale. The reason we don't currently offer this is to discourage gaming of the SM by people not paying for their parts and still earning interest. The interest currently goes into the Provision Fund but are happy to amend this.
Anything to add with regards the SM whilst we are focussing on this?
Just want to clarify: is interest not currently paid while loan parts are for sale? Who incurs the default risk over this period? Presumably it should be whomever benefits from the interest payment.
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sam i am
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Post by sam i am on Apr 8, 2016 17:00:30 GMT
The ability to cancel a sale whilst only part sold will be in place very soon.
We are going to show the amount for sale in front of you in the queue as well so you can make a more informed decision about selling/cancelling the sale.
Interest will be earned whilst loan parts are for sale. The reason we don't currently offer this is to discourage gaming of the SM by people not paying for their parts and still earning interest. The interest currently goes into the Provision Fund but are happy to amend this.
Anything to add with regards the SM whilst we are focussing on this?
Just want to clarify: is interest not currently paid while loan parts are for sale? Who incurs the default risk over this period? Presumably it should be whomever benefits from the interest payment. I think it's pretty obvious that the seller must hold the default risk for loan parts that are for sale. If not, as soon as a loan looks like it is in trouble everyone would immediately put their loan parts up for sale and SS would be left covering the entire risk. This would be like SS offering to buy any loan part from anyone at any time and would result in the platform effectively offering a 12% risk free return to investors. No one would expect that this would be the case. I'm very sure that SS would state that the person selling the loan part is still the holder but they receive interest at a rate of 0% instead of 12%. Before you complain too loudly about this remember that there is a balancing effect at the beginning of the loan. Investors are paid 12% as soon as they commit to the loan, regardless of when (or even if) the loan draws down. And all investments start accruing interest immediately even though INPL means that there is (at least) 24hrs to deposit the cash with SS.
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Post by johnnysaver on Apr 8, 2016 19:06:20 GMT
Just because you are offering your loan part up for sale doesn't mean anyone wants to buy it. If a loan is in trouble, there would be no buyers, and that's fair.
I would be in favour of a fair market, where I don't get any favours in terms of pre-funding, and don't bear any uncompensated risk.
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Post by Deleted on Apr 8, 2016 19:53:01 GMT
Just because you are offering your loan part up for sale doesn't mean anyone wants to buy it. If a loan is in trouble, there would be no buyers, and that's fair. I would be in favour of a fair market, where I don't get any favours in terms of pre-funding, and don't bear any uncompensated risk. Not another newbie announcing on day 1 - how things should change 
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Jeepers
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Post by Jeepers on Apr 8, 2016 20:05:15 GMT
Just because there is a separate company does not mean that there is any money in it. Since it is discretionary it would seem odd not to use the funds for working capital, unless they are doing so well that they don't need to. I wonder if the provision fund balance shown on the website is the actual balance of the ringfenced account or just the system calculating 2% of whatever the total loan book value is. It does seem unfair that sellers contribute to the provision fund with their interest from selling loan parts for SS to then take it out and maintain the 2% balance. Surely this percentage should be increasing all the time for the benefit and extra security for all investors.
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goopy
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Post by goopy on Apr 11, 2016 11:12:27 GMT
Just noticed there is a sale queue to tell you how much is in front of you before your loan part will be bought...
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SteveT
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Post by SteveT on Apr 11, 2016 11:21:40 GMT
Just noticed there is a sale queue to tell you how much is in front of you before your loan part will be bought... Excellent. I was surprised, though when I just tried listing a bit of PBL087 as a test, to see the same figure in the "Sale Queue" as shown as being "Available". I presumed much of the availability in that loan is SS / Underwriter parts being sold, so expected that my part would be rather higher up the queue!
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goopy
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Post by goopy on Apr 11, 2016 11:24:55 GMT
Just noticed there is a sale queue to tell you how much is in front of you before your loan part will be bought... Excellent. I was surprised, though when I just tried listing a bit of PBL087 as a test, to see the same figure in the "Sale Queue" as shown as being "Available". I presumed much of the availability in that loan is SS / Underwriter parts being sold, so expected that my part would be rather higher up the queue! Maybe they still need to do a bit of fine tuning, 100k has been added to PBL087 this morning that must be SS?
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sl75
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Post by sl75 on Apr 11, 2016 11:52:25 GMT
Excellent. I was surprised, though when I just tried listing a bit of PBL087 as a test, to see the same figure in the "Sale Queue" as shown as being "Available". I presumed much of the availability in that loan is SS / Underwriter parts being sold, so expected that my part would be rather higher up the queue! Maybe they still need to do a bit of fine tuning, 100k has been added to PBL087 this morning that must be SS? Perhaps inamongst all these changes, SS will no longer be prioritising secondary sales over their own managed distribution? It could avoid certain types of abuse of the pre-funding system.
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goopy
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Post by goopy on Apr 11, 2016 12:13:49 GMT
Yes, that thought had also crossed my mind sl75.
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Post by GSV3MIaC on Apr 11, 2016 12:24:58 GMT
That's a really useful addition, but I do wish savingstream would put it on their 'news' announcement channel rather than leaving it to the eagle eyed forumites to spot, and publicise! |
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ilmoro
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'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 Apr 11, 2016 12:34:21 GMT
That's a really useful addition, but I do wish savingstream would put it on their 'news' announcement channel rather than leaving it to the eagle eyed forumites to spot, and publicise! Do they have a 'news' announcement channel now? The unweekly updates appear to have died a death with the 'recent updates' tab sparking into life and the general recent updates tab seems to have developed a fault, where updates are blank, disappear or are wrong (PBL16 appears not to have repaid/closed as stated - still in live loans list) Perhaps they could amend the wording on the loan part for sale emails advising people that they can see the queue, cancel the sale and, if it is the case, dont have priority over underwriters/SS parts. Then again everybody probably deletes those without reading them anyway. But yes really useful addition but does need a bit of explaining what it is showing, whole queue? lender sale queue?
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Post by ladywhitenap on Apr 11, 2016 12:58:13 GMT
I like the idea of making the sales queue visible but it would appear that you have to list something for sale before you can see the queue??
If that is the case, can I make a plea to make it visible before committing to a sale as I believe looking at the queue is all part of the decision process of offering a loan part for sale or not.
Thanks
LW
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Post by GSV3MIaC on Apr 11, 2016 13:06:33 GMT
That's a really useful addition, but I do wish savingstream would put it on their 'news' announcement channel rather than leaving it to the eagle eyed forumites to spot, and publicise! Do they have a 'news' announcement channel now? It was more by way of a suggestion .. tongue in cheek .. that sort of thing! They keep making useful changes and then hiding their light under a bushel (or two).
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