sl75
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Post by sl75 on Mar 30, 2016 16:25:00 GMT
Expiration only really makes sense on a SM structured like FC's where there is a pool (from which buyers arbitrarily select one of many identical-looking loan parts) rather than a queue.
If you expire sales after 14 days but still have a FIFO queue, then on a (currently hypothetical, but more likely to become a reality if these changes are implemented) very slow-selling loan, you'd not sell it during the first 13 (or 13.9) days, and during the last moments, you'd have a CHANCE to sell, but if nobody happens to be buying that loan at that moment, you'd have to repeat the entire process over again.
Also, the system as described would probably be gamed to death. The moment that any loan has a queue expected to be longer than 1 day of future sales, someone will be able to list a loan part for sale that they don't intend to sell, merely because they wish to retain the OPTION to sell it at a future date (they'll cancel the sale if they don't want to take up the option... or alternatively they can repurchase the same amount if they don't quite cancel in time. A loan that was slow selling yesterday will almost certainly be at least available today, unless you REALLY misjudged the market)
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bigal
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Post by bigal on Mar 30, 2016 16:53:31 GMT
Sale cancellation function: Not particularly fussed either way. Queue position indication: Absolutely, simplifies the otherwise awkward process of manually tracking by other means. Payment of interest on parts for sale: I am not keen on this suggestion - I don't wish to see dumping on the SM. Potentially yes, alternative processes could work behind the scenes to mitigate this, but at the risk of detracting from the simplicity of the platform. As others have stated, it is vital in my book for reasons of transparency, integrity and so on that SS publish details of any change to platform mechanics well in advance of the implementation date (ie. at least a week), in addition to updating the T&Cs. savingstream : Thank you for reaching out to the Community on this proposal. |
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adrianc
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Post by adrianc on Mar 30, 2016 17:31:58 GMT
If you've got the ability to cancel a part for sale, then you have to pay interest on listed parts - otherwise 23:58 is going to see the SM go from £x00,000 to £0 in seconds flat, only for there to be a similar rush in reverse at 00:02...
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SteveT
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Post by SteveT on Mar 30, 2016 17:33:28 GMT
If you've got the ability to cancel a part for sale, then you have to pay interest on listed parts - otherwise 23:58 is going to see the SM go from £x00,000 to £0 in seconds flat, only for there to be a similar rush in reverse at 00:02... People can do that if they really want to, but they'll then go to the back of the selling queue.
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adrianc
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Post by adrianc on Mar 30, 2016 17:34:28 GMT
If you've got the ability to cancel a part for sale, then you have to pay interest on listed parts - otherwise 23:58 is going to see the SM go from £x00,000 to £0 in seconds flat, only for there to be a similar rush in reverse at 00:02... People can do that if they really want to, but they'll then go to the back of the selling queue. ...hence the rush as soon as midnight's safely passed...
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SteveT
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Post by SteveT on Mar 30, 2016 17:40:36 GMT
People can do that if they really want to, but they'll then go to the back of the selling queue. ...hence the rush as soon as midnight's safely passed... They'll still be behind anyone that forgoes a day's interest to stay in the queue.
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ablender
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Post by ablender on Mar 30, 2016 18:15:20 GMT
A lot of good ideas; some conflicting, but still valid.
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Post by GSV3MIaC on Mar 30, 2016 19:00:12 GMT
SS could always charge a day's (or x days) interest on anything that sells - that'd stop people churning stuff they really didn't want to sell after all (and then buying it back from the rest of the queue).
Or have a two-speed queue .. stuff people are happy (but not desperate) to sell, which is the underwriter/liquidity pool, which continues to collect interest, and the 'desperate to sell' pool, which doesn't (and which is always sold first). Basically says you can join the 'underwriter' sale queue if you want to (which right now I believe is just SS - they don't lose interest on the parts up for sale .. at least they just 'move it from one pocket to the other'). Yes, yes, I know it is getting more complicated than it is at the moment, but 'at the moment' is confusing (are those for sale parts mine or not!?).
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nick
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Post by nick on Mar 30, 2016 20:32:12 GMT
It seems like only yesterday that everyone was moaning about the absence of any loan parts on the SM and now everyone is concerned about the amount of loans on the SM....... The total amount on the SM is still very small versus total loan book. In respect of liquidity in specific loans, bar the most recently launched loans where there is some expected overhang, all other loans look to be fairly liquid. Even looking at Tranche D of the recent farm loan issue is slowly churning and I would be very surprised if anyone has been queuing/waiting to be bought out for more than 7 days. For this type of investment, waiting a week or so to get your money out at the cost of forfeiting interest in that time should not be an issue, and if it is, that money probably shouldn't be invested in P2P.......
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Liz
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Post by Liz on Mar 30, 2016 22:47:23 GMT
I also don't think paying interest for parts on the SM is a good idea with the current setup. Would far rather it went to the provision fund than allow people to take unfair advantage of INPL. I agree, paying interest on the SM sales, will have a detrimental effect on liquidity, and I don't welcome it. Knowing your position in the queue and a cancel button are welcome additions.
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SteveT
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Post by SteveT on Mar 31, 2016 5:46:05 GMT
MoneyThing's recent cashback loan provides a neat illustration; within minutes of the loan closing last night, more than 10% of it was back on the SM where it will doubtless sit for the foreseeable future. Many lenders won't be too bothered at this as their holdings are still earning interest but anyone NEEDING to sell quickly will be stuffed. savingstream, adding interest to Selling parts undoubtedly will hurt SM liquidity, which (up to now) has been your overriding objective. SS loans will have to be considered "buy only to hold to term", which certainly will reduce the amount I'm happy to take up in new loans. |
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Post by savingstream on Mar 31, 2016 8:28:27 GMT
savingstream The problem appears to be BH's clogging the SM with large sales thereby preventing smaller investors selling their units. I propose that a 'max sell limit' of £1000 be introduced in any individual loan. BH's would have to wait until their sale completed, before putting another £1,000 up for sale. The process could be automated so that the BH wouldn't need to keep making manual sales. So if a lender put £20,000 up for sale it would only sell that £20,000 in blocks of £1000, thus allowing other lenders into the queue. Great idea, let's see how many more BH's we can get to disappear off to other platforms or reduce their holdings on SS, that's what we need. So your plan is that some investors can sell 100% of their stake in a loan at any time and others can only sell 1%. That sounds fair. BH's are already scaling back as seen by the total investment figures, let's not make it any worse. Splutter splutter! We had our best month ever last month, £21m! It is not our impression that anyone is going anywhere. 20 new investors a day and average investment going up. Looks like we are building trust, offering a great product and ticking all the boxes.
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dp
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Post by dp on Mar 31, 2016 9:37:51 GMT
savingstream when will cancel an unsold part be available? I have a part I want to cancel. Thanks
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tomtom
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Post by tomtom on Mar 31, 2016 9:54:50 GMT
savingstream when will cancel an unsold part be available? I have a part I want to cancel. Thanks
snap
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sl75
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Post by sl75 on Mar 31, 2016 9:56:51 GMT
savingstream when will cancel an unsold part be available? I have a part I want to cancel. Thanks I would expect that if you've a good reason, and a positive "Available funds" total, they'd be amenable to manually cancelling it if you contact customer services - especially given the public statement here that they intend to launch a mechanism to allow lenders to cancel sales themselves at some point in the (presumably near, as they've announced it) future.
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