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Post by wiseclerk on Jun 8, 2016 21:35:57 GMT
I think it has to be considered too, that, while the PF could cover this default, SS if true to its own statement has then to refill it again to 2% of loan book. That too will have them consider how readily and how plentiful to use the funds in the PF to cover. However it is not even clear yet, that the security will not cover the outstanding loan amount. If no shortfall should occur this whole debate is pointless.
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Post by earthbound on Jun 8, 2016 21:38:09 GMT
This PF subject is now the most interesting thing with regards to this default, looking over recent previous post's, it seems to be the general acceptance that the PF will pay the capital loss and 'maybe' the interest, with the latest update from SS seeming to lean toward that as well, the results could be very interesting if the opposite actually occurs. Whilst I understand the cause for optimism I do not read too much into the latest statement. Of course interest continues to accrue on PBL20 but [may only] be paid if the security pays everything else ranked above it is settled. As Christine Keeler nearly said about Mr Profumo "they would say that wouldn't they?" agreed and even with the newly formed co's lurking in the background, i reckon 6 months minimum before we will found out where SS stand.
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Post by earthbound on Jun 8, 2016 21:40:31 GMT
<snip> However it is not even clear yet, that the security will not cover the outstanding loan amount. If no shortfall should occur this whole debate is pointless. I fully agree, but i doubt that is going to happen... 
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Jun 8, 2016 21:40:49 GMT
The PF is there, and will presumably be used for this most recent default (possibly to cover the capital, maybe less if an another default occurs before PBL20 security has been sold), but I honestly don't think it should matter...
SS is not an instant savings account, and SS have no obligation to cover any losses; there is risk behind investing in P2P, and a PF only masks that risk; if it pays out, that's great, but I honestly believe that you should invest in each individual loan with the PF firmly at the back of your mind.
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid.
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Post by earthbound on Jun 8, 2016 21:46:51 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. And this is even harsher.... what the hell are you people doing investing in PBL020 on the SM.  ?
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Post by harvey on Jun 8, 2016 21:50:56 GMT
And why have I never seen more than about£80,000 of it up for sale.
Do we know how much has changed hands in the last 2 weeks?
It looks like we have some very optimistic investors who are very confident about the outcome and happy to sit tight or else there are some very dormant,sleeping,lazy investors who have just tucked their money in like a bank account and don't actively manage it on a daily or weekly basis and perhaps are in blissful ignorance about it all.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 8, 2016 21:51:16 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. And this is even harsher.... what the hell are you people doing investing in PBL020 on the SM. ? Don't get me started... Somebody invested £3,000.00 today  I can only assume they have no knowledge outside of the SS website (i.e. this forum, or common sense), and believe that the PF will cover all (capital & interest).
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
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Post by ilmoro on Jun 8, 2016 21:55:32 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. Sure you can see the contradiction in that statement. Liquidity means that someone has to end up holding the baby!
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Post by earthbound on Jun 8, 2016 21:59:42 GMT
And this is even harsher.... what the hell are you people doing investing in PBL020 on the SM. ? Don't get me started... Somebody invested £3,000.00 today I can only assume they have no knowledge outside of the SS website (i.e. this forum, or common sense), and believe that the PF will cover all (capital & interest). 100% Agree, i have forgotten how many times i have made this point over the last week or so, and there has been no need for it, the SM has been very active since this default, there are a few deluded out there that believe the SM is always this way , but they seem to forget the months on end period of... ALL LOANS ARE FULLY FUNDED
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 8, 2016 22:01:42 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. Sure you can see the contradiction in that statement. Liquidity means that someone has to end up holding the baby! No doubt that the liquidity on SS has been incredible, regardless of the actual risk of the loan. In the past 6 months (i.e. since I started investing), it matters little if the loan was "12 months remaining @ 30% LTV" or "-200 days remaining @ 70% LTV", it would sell on the SM instantly. People are just happy to dump their money somewhere with the expectation that they will get their 12%. That's simply not good practice; realistically we should be seeing large sums of riskier loans on the SM; especially those approaching or in negative remaining time.
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Post by earthbound on Jun 8, 2016 22:03:38 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. Sure you can see the contradiction in that statement. Liquidity means that someone has to end up holding the baby! I also fully agree here as well,.... but who?... I am certainly NOT a sophisticated investor, but what kind of investment strategy leaves you stuck with this pup.
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Liz
Member of DD Central
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Post by Liz on Jun 8, 2016 22:04:23 GMT
This is going to sound harsh, but it has to be said; anybody that remained invested in PBL20, up until the default, only have themselves to blame if they lose any capital. It's not like they didn't have the opportunity with the SM being so liquid. And this is even harsher.... what the hell are you people doing investing in PBL020 on the SM. ? Does this point need to be made ad infinitum? On the PF, I've got a funny feeling that the FCA won't allow this type of provision fund, one which could undermine the whole platform. If SS need to "top up" the PF with say £1m, the platform could be cash strapped and at risk of failure. I have no idea how they would shut it, I don't suppose they could just the. £2m, or could they
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Post by earthbound on Jun 8, 2016 22:13:40 GMT
And this is even harsher.... what the hell are you people doing investing in PBL020 on the SM. ? Does this point need to be made ad infinitum? Yes i think it does, i know we are going round in circles, but if one person reads these posts and then thinks... "Do you know... i don't think i will put my savings into this loan, even though it says my interest is accruing" Then i'll be happy.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
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Post by ilmoro on Jun 8, 2016 22:17:37 GMT
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Post by earthbound on Jun 8, 2016 22:20:54 GMT
hee hee its not the idiot with the cheesy grin. 
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