momac
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Post by momac on Apr 3, 2016 22:08:14 GMT
Let me get this straight. You put in your £1000 (minimum), and then wait to see what loans at what rates come out of the hat, with no control whatsoever over the results, so you might get lots of 9% loans, or up to 25%, or whatever, and your overall gross rate might vary wildly. Is that how it works? What risk bands are there? How long would you expect to wait to see your 1G invested? Is your loanbook averaged out across risk bands? Yup! You're right. We're all just a bunch of players, waiting to see how it works without risking anything we couldn't afford to lose and get to talk about it. Of course we would like to choose our lending rates and borrowers, but that isn't an option at the moment. We were all probably playing in the Zopa Listings market before it was discontinued and in the B/C/Y markets before they were discontinued. I have to say that I did well from the discontinued markets at Zopa and that my non-Safeguarded loans are not disappointing. My Safeguarded stuff however....
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kaya
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Post by kaya on Apr 4, 2016 13:39:30 GMT
What these previous markets were I have no idea, being before I joined, but it would certainly be interesting if we could choose our own individual loans and risk. The next step perhaps? I guess you can already do that at Madiston lend loan invest, but I don't think that platform has caught on at all.
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Greenwood2
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Post by Greenwood2 on Apr 4, 2016 15:35:56 GMT
Listings allowed borrowers to plead their case for a loan, we all eventually realised we were suckers when it came to pretty faces, furry animals and sob stories and lent too much at too low rates to dodgy people.
In the markets you could lend to A, B or C risk borrowers setting your own rates, but constrained by market forces. Again a bit of a blood bath on C (and Y 'young borrowers' for me). But spreading across the markets gave pretty good returns overall.
At least we had plenty to talk about.
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toffeeboy
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Post by toffeeboy on Apr 5, 2016 10:04:00 GMT
Listings allowed borrowers to plead their case for a loan, we all eventually realised we were suckers when it came to pretty faces, furry animals and sob stories and lent too much at too low rates to dodgy people. In the markets you could lend to A, B or C risk borrowers setting your own rates, but constrained by market forces. Again a bit of a blood bath on C (and Y 'young borrowers' for me). But spreading across the markets gave pretty good returns overall. At least we had plenty to talk about. Stop it you are making me nostalgic for the good old days of Zopa when we actually had a bit of control and it was entertaining.
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Post by propman on Apr 5, 2016 11:31:48 GMT
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toffeeboy
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Post by toffeeboy on Apr 5, 2016 14:49:21 GMT
I was lucky enough to not discover P2P until 2009 so missed out on the reduced rates but missed the bad debts as well
Just realised whilst typing that that I have been lending for 7 years a couple of months ago, god where does the time go
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Greenwood2
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Post by Greenwood2 on Apr 5, 2016 16:27:08 GMT
Bad debts were up in 2008/2009 but lenders still made a profit and Zopa survived, one good reason to stay at least partly with Zopa.
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aju
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Post by aju on Apr 6, 2016 9:37:25 GMT
I've been here since 2006/7 and I have a number of old debts some have been arround for a loooooooooong while, I feel though that the profit I have made on both the good and the bad have very easily out weighed the defaults and then some. Of course its more boring in the safeguarded era and things are opening up a little with z+ but the control is not there.
I now have a 5 figure sum in both mine and er indoors accounts, not making as much as in the past but hey our isa's are stupidly low so times are harder than they were before 2007/8.
Last nights failed run is slowing my funding by repayments for the z+ I opened on day one, took a couple of days understanding the repayments target etc but that zopa and terminology - got the hang of it now and just waiting for funding hit to start lending. Only a few more weeks though if I've got the calcs right - unless a few of the £20+ loans pay off their loans.
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momac
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Post by momac on Apr 6, 2016 12:19:41 GMT
Listings allowed borrowers to plead their case for a loan, we all eventually realised we were suckers when it came to pretty faces, furry animals and sob stories and lent too much at too low rates to dodgy people. In the markets you could lend to A, B or C risk borrowers setting your own rates, but constrained by market forces. Again a bit of a blood bath on C (and Y 'young borrowers' for me). But spreading across the markets gave pretty good returns overall. At least we had plenty to talk about. Stop it you are making me nostalgic for the good old days of Zopa when we actually had a bit of control and it was entertaining. toffeeboy: and I didn't even mention the fishing expeditions - they were fun. What I don't miss is the lending matches made over the weekend being returned when the zappers got to work on Monday... greenwood2: the pretty faces didn't make much impression on me (for obvious reasons); nor the furry animals; the sob stories were fun, but I set my rates too high to participate.
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toffeeboy
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Post by toffeeboy on Apr 6, 2016 13:14:37 GMT
toffeeboy: and I didn't even mention the fishing expeditions - they were fun. What I don't miss is the lending matches made over the weekend being returned when the zappers got to work on Monday... greenwood2: the pretty faces didn't make much impression on me (for obvious reasons); nor the furry animals; the sob stories were fun, but I set my rates too high to participate. Ah the good old Zapper, how I miss checking in Monday to see what percentage of my weekend matches made it past that evil zapper.
Fishing was good fun and usually a worthwhile past time though
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Post by Ton ⓉⓞⓃ on Apr 6, 2016 16:16:13 GMT
I've just added another tenner to my 1k in case someone pays back early and it freezes my Z+ lending.
It's quite fiddly adding small amounts like that, Z have to find a way for each of the a/c's to recycle their own money or something.
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aju
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Post by aju on Apr 6, 2016 17:38:22 GMT
I've just added another tenner to my 1k in case someone pays back early and it freezes my Z+ lending. It's quite fiddly adding small amounts like that, Z have to find a way for each of the a/c's to recycle their own money or something. I second the recycling point.
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Post by blanik on Apr 7, 2016 5:26:55 GMT
It's quite fiddly adding small amounts like that, Z have to find a way for each of the a/c's to recycle their own money or something. My understanding is that currently if auto relending is turned on, then repayments ( including early ) from Z+ will go back into Z+ What I'm waiting for is a method to automatically recycle Classic into Z+
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Post by propman on Apr 7, 2016 8:54:00 GMT
I've just added another tenner to my 1k in case someone pays back early and it freezes my Z+ lending. It's quite fiddly adding small amounts like that, Z have to find a way for each of the a/c's to recycle their own money or something. Although I would have liked to dip a smaller toe into Z+ initially, I think the impact of defaults on a £1k portfolio is too subject to chance. While we might expect 5 or 6 on average, the likelihood of 10 even if Zopa's portfolio as a whole performs according to expectations is still significant. This makes "likely" returns from this fluctuation alone 4-8.5% and so impossible to assess. to reduce this to approx. +/-1% requires 400 loans. I rather think that the £1k was set to make the random chance of defaults exceeding income over a year or more very small (less than 1 in 1000) to reduce the noise of those complaining from bad luck alone. (I assume the proportion calculating the return will be low, but most might notice an absolute decline).
- PM
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aju
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Post by aju on Apr 7, 2016 9:10:07 GMT
I've just added another tenner to my 1k in case someone pays back early and it freezes my Z+ lending. It's quite fiddly adding small amounts like that, Z have to find a way for each of the a/c's to recycle their own money or something. I second the recycling point. Yesterday I asked specifically what happens and got this back from zopa today. "I can advise that once you turn re-lending on, the repayments will automatically be reinvested in the same products they originated from by default. We will shortly be introducing the options for you to change these settings online should you wish to do so."
I see also that blanik said the first part above, I'm hoping the bit they are introducing will allow me to do what I want which is recycle my non safe guarded into z+ at the moment I've got re-lend off and doing it manually by re-lending to my default Z+.
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