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Post by westcountry on Apr 29, 2016 9:32:39 GMT
Or why not just pay no interest on loan parts which are sold within 7 days of purchase?
That way buying loan parts on credit & selling them within 48hrs is pointless (as you won't get any interest), but genuine investors still have the flexibility to sell loan parts as and when required.
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Post by supernumerary on Apr 29, 2016 9:34:23 GMT
I e-mailed Saving Stream last night about this, as I think it's a bad idea. I had a reply from Tim this morning, I'm not sure whether I should post it in full, so I will just share the main points. 1) The main problem isn't gaming the pre-funding, but with people buying loan parts on the secondary market, and selling them within 48hrs - getting interest without ever putting money in SS. 2) Saving Stream see making investors hold any loan parts they've purchased for 7 days as a fair requirement for using the platform. So it sounds like this will probably be going ahead, for both pre-funding and secondary market purchases :-( Just as i suspected, i been banging on about this playing the SM for free interest, was told many times that interest was not payed to the players, seems all along it was. Two very interesting posts. It would be interesting to know how much interest that Saving Stream know that they are paying out to these ‘chancers’… This money could be used instead, to build up a much bigger Provision Fund, for the benefit for all.
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jimc99
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Post by jimc99 on Apr 29, 2016 9:36:39 GMT
Or why not just pay no interest on loan parts which are sold within 7 days of purchase? That way buying loan parts on credit & selling them within 48hrs is pointless (as you won't get any interest), but genuine investors still have the flexibility to sell loan parts as and when required. Or just pay interest when the purchase is actually paid for.
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goopy
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Post by goopy on Apr 29, 2016 9:37:26 GMT
savingstream I'd rather you did away with INPL than instigate a 7DH. I agree, I would much rather do away with INPL than have to hold all loans for 7 days.
If the problem is people getting interest without putting money in would the best way forward not be to stop paying interest on a negative balance? I'm not a coder so I don't know how easy/difficult this would be to implement, does anyone have any input?
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Post by Deleted on Apr 29, 2016 9:40:34 GMT
I think the proposed changes are a good idea if SS deem them necessary, those unhappy about the changes can blame the chancers who forced the change on SS.
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Steerpike
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Post by Steerpike on Apr 29, 2016 9:40:59 GMT
I pre-fund the maximum amount I want in a loan and I do not use the secondary market for purchases.
From time to time I sell on the secondary market if I want to rebalance my portfolio, to maintain my target total holding in SS, or because I want to reduce my exposure in a particular loan for some reason. Of course if the sky looked like it was about to fall in I might want to sell everything immediately but in those circumstances I suspect that there might be few buyers anyway.
I understand that most of the loans are for 6 or 12 months and may be extended for a few months.
Introducing a minimum hold period of up to 60 days would have little or no effect on my use of the platform other than perhaps making it slightly more likely that I may be allocated sums closer to my pre-fund limit.
Bring it on.
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Post by earthbound on Apr 29, 2016 9:41:56 GMT
The quicker SS get this sorted, up and running the better, makes my blood boil knowing the chancers are making money from investing NIL..  |
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SteveT
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Post by SteveT on Apr 29, 2016 9:48:12 GMT
There's no justification for needing to trade in and out of 6-12 month bridging loans within days and it will be good to see the practice stamped out. Whether this is done by blocking re-sale for a few days or (probably less palatable to SS lenders) delaying interest accrual until 48 hours after purchase, I'm not really fussed. The net effect is that BHs will have little incentive to pre-fund or purchase more than they're willing to pay for.
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Post by earthbound on Apr 29, 2016 10:26:35 GMT
There may also be another angle to consider. What if i have £1k in my SS account and i buy £500 of pbl whatever, on the SM , so payed for immediately, should i be made to hold that for (X) amount of days? or should i be free to sell 10 minutes later if i want to do that.
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adrianc
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Post by adrianc on Apr 29, 2016 10:39:12 GMT
makes my blood boil knowing the chancers are making money from investing NIL.. They aren't.
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Post by earthbound on Apr 29, 2016 10:42:41 GMT
I e-mailed Saving Stream last night about this, as I think it's a bad idea. I had a reply from Tim this morning, I'm not sure whether I should post it in full, so I will just share the main points. 1) The main problem isn't gaming the pre-funding, but with people buying loan parts on the secondary market, and selling them within 48hrs - getting interest without ever putting money in SS. 2) Saving Stream see making investors hold any loan parts they've purchased for 7 days as a fair requirement for using the platform. So it sounds like this will probably be going ahead, for both pre-funding and secondary market purchases :-( Just as i suspected, i been banging on about this playing the SM for free interest, was told many times that interest was not payed to the players, seems all along it was. makes my blood boil knowing the chancers are making money from investing NIL.. They aren't. I think they might be.
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dovap
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Post by dovap on Apr 29, 2016 10:42:57 GMT
sounds like a stupid 'solution' to a simple problem of their own making
reducing flexibility doesn't appear a very forward thinking approach but hey ho
maybe implemented in time for the big Hull launch (or the next toxic dump) appears ?
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Post by trevxe on Apr 29, 2016 11:00:19 GMT
Just as i suspected, i been banging on about this playing the SM for free interest, was told many times that interest was not payed to the players, seems all along it was. Two very interesting posts. It would be interesting to know how much interest that Saving Stream know that they are paying out to these ‘chancers’… This money could be used instead, to build up a much bigger Provision Fund, for the benefit for all. I've changed my mind on this. I think you're right. If the aim is to stop people getting interest on unfunded purchases, the best solution is simply to stop paying interest on unfunded purchases. Using the interest (which strictly speaking ought to belong to Lendy, shouldn't it?) to supplement the provision fund would be a nice approach.
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ianj
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Post by ianj on Apr 29, 2016 11:01:21 GMT
The quicker SS get this sorted, up and running the better, makes my blood boil knowing the chancers are making money from investing NIL.. But ISTM that this measure, by itself, won't remove the opportunity it profit from trading within the 24/48hrs grace periods. I thought through a 'work-around' in a few minutes, and I'm not trying to make a profit, so it certainly won't take too long for your 'professional' chancers to work it out. SS have already confirmed that anyone not settling their account within the time limits will have their purchases cancelled and no interest paid. There's no justification for needing to trade in and out of 6-12 month bridging loans within days and it will be good to see the practice stamped out. Whether this is done by blocking re-sale for a few days or (probably less palatable to SS lenders) delaying interest accrual until 48 hours after purchase, I'm not really fussed. The net effect is that BHs will have little incentive to pre-fund or purchase more than they're willing to pay for. You don't need to sell recent purchases in order to profit. Selling any eligible loan within 24/48hrs will balance your account and, within the system as it currently stands, any 'extra' interest will be retained. The crux of the matter, as you have identified, is the accrual of interest within the 24/48hrs grace periods. Oh dear, if I'm correct I foresee another poll.
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sam i am
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Post by sam i am on Apr 29, 2016 11:05:22 GMT
savingstream I'd rather you did away with INPL than instigate a 7DH. I'd rather you instigate 7DH than do away with INPL. But even better, maintain the status quo. It seems there are some different perspectives on the forum.
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