Greenwood2
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Post by Greenwood2 on Mar 21, 2016 10:47:24 GMT
I Put money in early morning on the first day, no matches yet. I had assumed they would top up with institutional money if there wasn't enough individual lender money in the Z+ queue. Oh well carry on waiting...
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Post by newlender on Mar 22, 2016 5:59:58 GMT
The latest email weekly update says that they are waiting for liquidity to build up in Z+ and ZA before they start lending. That's useful to know but I'd like to have an idea of how much liquidity they need and what the current situation is. So at the moment only ZC is getting new loans, apparently. A message on the website might be a good idea for those who don't read their email very often and don't access this forum; I do both and was still a bit bewildered about why none of my money had moved out of the queue.
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wapping35
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Post by wapping35 on Mar 22, 2016 8:10:00 GMT
Indeed the problem is lenders really need an idea of how much liquidity is needed in Zopa + and how far they are away from achieving that liquidity target.
I envisage Lenders will start to withdraw funds shortly if no lending is seen in Z+(for anyone) and thus the Liquidity threshold will never be met.
I assumed Zopa would have considered this problem at the outset and thus used the institutional money to kick start the process..
Otherwise it could take weeks / months to meet that liquidity target and it is quite possible it is never met...
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Post by propman on Mar 22, 2016 8:27:13 GMT
I guess they are assuming that the sheep will stay around and form the queue. However many of the less sophisticated are likely not to have the £1000 on hand, not realise anything has changed or be risk averse and scared off by lack of SG so it may not happen. Lending usually dies over Easter so not helpful until April, but prepared to be patient for the moment as I really want some diversification and have too high a proportion on RS.
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Post by davee39 on Mar 22, 2016 8:55:52 GMT
My £1k is on its way back out. I expected a newly launched account to actually work and not to be left in an invisible and indeterminate queue. I will not be returning until I can be confident of prompt lending.
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wapping35
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Post by wapping35 on Mar 22, 2016 9:49:21 GMT
My £1k is on its way back out. I expected a newly launched account to actually work and not to be left in an invisible and indeterminate queue. I will not be returning until I can be confident of prompt lending. Hi, I think you illustrate the potential liquidity problem Zopa have created for themselves. The safest bet is possibly to wait until Zopa confirm they have sufficient liquidity for lending on Z+ to occur and invest then. I would still suggest Zopa use existing institutional lending to kick start lending and then over time retail lending will meet their liquidity threshold. W35 p..s I also feel Zopa should have highlighted the liquidity problem BEFORE they rolled out the products not 5 days afterwards... And indeed they should mention what will happen if they do not meet the liquidity threshold they have set themselves, within a reasonable time scale (say a month)...
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Steerpike
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Post by Steerpike on Mar 22, 2016 9:56:58 GMT
Yes, I have given up too, if Zopa can't be bothered to make it work properly or at least show the queue length, I can't be bothered to (try to) invest.
I am back to withdraw mode.
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Post by blanik on Mar 22, 2016 10:32:51 GMT
I guess they are assuming that the sheep will stay around and form the queue. However many of the less sophisticated are likely not to have the £1000 on hand, not realise anything has changed or be risk averse and scared off by lack of SG so it may not happen. So they devise a system that makes it difficult to re-invest in Plus, then have a lack of capital. I only noticed the info in the weekly e-mail after wapping mentioned it, I initially skimmed over that section as I thought it was just a re-hash of "We have just launched......" They will need to have this fixed soon before they try to launch their ISA and attract brand new money and lenders. The risk adverse lenders may also have a problem, the weekly update also says that they are letting the capital build up in Access as well!
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Post by Ton ⓉⓞⓃ on Mar 22, 2016 10:45:35 GMT
Oh dear I think I might be one of the unsophisticated sheep. I'm prepared to leave it in there for up to a month.
I wonder when/if Z+ gets going might it then have the problem of having to stop for awhile after everyones' 1k has been lent. Perhaps there will be another hiatus perhaps broken by the new ISA money?
I said in the another thread I think retail money (us) and institutional money will not mix in the same loans. They're be getting whole loans we'll still be getting microloans.
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wapping35
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Post by wapping35 on Mar 22, 2016 10:49:44 GMT
I have just sent a "dissatisfied of Wapping" email to Zopa directly re the Liquidity issue and the poor (NO) communication up front regarding it....
I have asked them to clarify the following:
1) How long will they leave it to see if they meet their self imposed liquidity threshold ?
2) What will they do if they don't meet it by XX date ?
a) Used institutional money to kick start Z+
or
b) Scrap Z+.
Regards
W35
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aju
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Post by aju on Mar 22, 2016 10:51:01 GMT
Just complained about the re-lend thingy but then noticed the latest in the weekly email seems to me that I am out of luck in getting my re-lend to flow where I want it too. I hope they will re-think that one as it might be difficult for them to give correct figures of interest. Trouble is if I put £1000 into plus and the loans last the full period and repayments go onto another queue doesn't that mean rather than getting 6.5% (assuming defaults etc) don;t I really only get approx 3.25% and 50% of whatever the classic queue is giving on the re-lent money.
Also does this mean that anything on the Plus queue is eventually run down until there is nothing in there and I have to start all over again.
To maintain the £1000 and get compound effect is going to be very hard. In my opinion all re-lend should as a minimum be onto the product that it starts on unless I re-assign it. Also does it not mean that all money onto the new products are New money.
I am very disillusioned with zopa at the moment and it seems I am not alone. I know we are not aloud to talk about other platforms but is the current zopa methodology different on say RS say.
Update:
Just got email from zopa that starts
"Thank you for contacting Zopa, the UK's leading peer-to-peer lending service.
We are currently experiencing a high volume of emails and will respond as soon as possible."
....
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Post by Ton ⓉⓞⓃ on Mar 22, 2016 12:21:41 GMT
Mentioning other platforms and saying things like RS handle repayments better or whatever (I'm not yet on RS) is perfectly okay if you believe it, aju it's more about etiquette it's not in the rules, sorry I didn't make that clear before. I think I mentioned that piece of etiquette about a month ago when Zopa locked their forum mainly because there was a wave of people who didn't seem to be Zopa Lenders who came onto this board and started offering their favorite platforms as better options. I later stuck up some links that discuss other platforms rather than have another such discussion on here. Having said that; if Zopa Users had a vote and said "we really want a thread on this board where we can discuss other platforms" it would probably be set up so you(we) could do. But it makes sense to have those discussion in one place on the General p2x board. |
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Post by newlender on Mar 22, 2016 12:30:27 GMT
With most posters here saying that they're pulling out of Z+, that means my£2K is moving up the queue  Oh no! It also means less liquidity too  . Now I know what 'Catch 22' is all about. |
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aju
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Post by aju on Mar 22, 2016 14:39:58 GMT
Mentioning other platforms and saying things like RS handle repayments better or whatever (I'm not yet on RS) is perfectly okay if you believe it, aju it's more about etiquette it's not in the rules, sorry I didn't make that clear before. I think I mentioned that piece of etiquette about a month ago when Zopa locked their forum mainly because there was a wave of people who didn't seem to be Zopa Lenders who came onto this board and started offering their favorite platforms as better options. I later stuck up some links that discuss other platforms rather than have another such discussion on here. Having said that; if Zopa Users had a vote and said "we really want a thread on this board where we can discuss other platforms" it would probably be set up so you(we) could do. But it makes sense to have those discussion in one place on the General p2x board. Sorry Ton, (No offence taken either) I wasn't trying to have a go at the rules or the etiquette I was just trying to to keep it relevant without breaking them. I don't personally see a need to compare zopa against others on a big scale here I was just curious if zopa was that different to the way RS methodology was. I am still a zopa only person at present but who knows what I may do soon.
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Post by blanik on Mar 22, 2016 14:58:57 GMT
Just complained about the re-lend thingy but then noticed the latest in the weekly email seems to me that I am out of luck in getting my re-lend to flow where I want it too. I hope they will re-think that one as it might be difficult for them to give correct figures of interest. Trouble is if I put £1000 into plus and the loans last the full period and repayments go onto another queue doesn't that mean rather than getting 6.5% (assuming defaults etc) don;t I really only get approx 3.25% and 50% of whatever the classic queue is giving on the re-lent money. Also does this mean that anything on the Plus queue is eventually run down until there is nothing in there and I have to start all over again.
.... AJU, If auto-relend is on, then relending will be back into the original product, irrespective of the new money setting. So with auto-relend on if you have £1000 in Plus, then the repayments will go back into Plus, and you will continue to get the Plus rate. [ Presuming that Plus starts making loans! ] The problem is when you want your relending from Classic to go into Plus - With auto-relend ON money from Classic and Pre-Safeguard will always go to Classic. If you do not want this you have to turn auto-relend OFF, left the money go into the holding account, then offer it manually where it will be treated as new money and go into the default product. Zopa have said that they will work on a way of automating this process later. Edit - I have pointed out to Zopa that a more flexible approach to auto-relending may be required once they launch the ISA products, it is quite possible that someone would wish to recycle their payments from Classic to an ISA-Classic ( irrespective of changing product ). Also once ISA is started, if I turn auto-relend off so that I can move money from Classic to Plus, it also means that currently repayments from ISA-Plus will also go the holding account. Although I will be able to replace any ISA capital withdrawn, I don't think I'll be able to re-invest any interest. The simplest solution would be to have a recycling option for each product so you could go from Classic ( or any other product ) -> Plus, Classic, Assured or Holding account.
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Oh no! It also means less liquidity too 
. Now I know what 'Catch 22' is all about.