jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Jun 14, 2016 16:03:34 GMT
I think you might be surprised, this board does not represent a large proportion of SS lenders and a lot of people seem desperate to get in on anything they offer, maybe because of their 12% return, not a penny lost boast, the PF, and near perfect track record. So let's say a few hundred get doubts from reading this thread still leaves a lot to participate given the 2.5-3k lending in recent loans And quite likely those of us who are still happy to lend don't have much to say, so you aren't hearing from us. My prefunding is normal on all of these and you can rest assured I won't be alone there. I'm not desperate to lend either - I just keep the portfolio ticking over and steadily growing with the interest. Clearly many of you consider it ill-advised, but it's the way I do things  Yeah I'd agree with you. I've reduced my individual pre-funding simply due to the number of loans but overall I'm in for about normal. I do trust SS but I was surprised at the way these "appeared" and their comms have again fallen short.
However these loans have provided the best SM opportunity I've had for ages (maybe ever).
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Post by Deleted on Jun 14, 2016 16:11:45 GMT
Could you explain more clearly what is the perceived problem? I'm sure there are others who could answer this better than I but here goes: 1) There is evidence that a single borrower is clearing the books: CD on borrower2) SS are creating an unbalanced loan book: GS3VMIaC on exposure
3) Valuations are optimistic, given the fall in property prices since April: GS3VMIaC on valuations
4) Valuations for 4 of the properties assume lease extensions: Pepperpot on Leases5) SS not replying to some fairly fundamental questions: Various posts 6) All properties are in London and of the same type: I prefer to diversify more than this 7) SS said they would not release more than 3 loans on any single day 8) SM has lost liquidity (a USP of SS) due to 7-day rule and £12M hitting at once 9) How did they miss out stages 1 and 2 completely? Various posts saying this reduces confidence 10) We haven't been given enough time to do our own DD on the portfolio This is a set of circumstances that has not happened before. My main concern is not these loans but the risk that SS is taking by taking on this particular portfolio. Had they been different borrowers, different regions, different property classes, I would feel differently. Platform exposure is my biggest concern, since they will be claiming interest before the loans themselves. Hope that answers your question in part. . . Ok, but I personally disagree on most of the comments above. In particular: a) I have to diversify my portfolio in order to limit my exposure, certainly not Lendy (which should be seen as a broker, not as an investor). Yes, I understand that exposure to London increases a lot after this, but after all London is not a random countryside place.... b) The liquidity on the SM market will probably come back. A lot of people (me included) prepared for these loans selling something else, given the big size... c) The procedure (stage 1,2 etc) is information that you should be gratefull SS sometimes passes out. In my view, as said earlier, this is confidential information which should not even be given to lenders until a full agreeement is signed with the borrower. This is to avoid potential competitors stealing borrowers... To me all it matters is stage 3 really and having a 24-hour call is good enough (much better than most other platforms). d) Ok, take your time to do the DD, but don't sread panic because you did not have time... To me some of the securities look pretty solid in this context (of course Brexit might change things, but who can say it for sure?) and I will be happy to invest in at least 3 of these London loans.
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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
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Post by ilmoro on Jun 14, 2016 16:15:21 GMT
And quite likely those of us who are still happy to lend don't have much to say, so you aren't hearing from us. My prefunding is normal on all of these and you can rest assured I won't be alone there. I'm not desperate to lend either - I just keep the portfolio ticking over and steadily growing with the interest. Clearly many of you consider it ill-advised, but it's the way I do things Yeah I'd agree with you. I've reduced my individual pre-funding simply due to the number of loans but overall I'm in for about normal. I do trust SS but I was surprised at the way these "appeared" and their comms have again fallen short.
However these loans have provided the best SM opportunity I've had for ages (maybe ever).
Same here, nice to have some 1 year loans rather than all the 6 month loans I have to start selling down after a short timeframe. (risk management but mainly to avoid dead time on large amounts should they actually repay anywhere near time)
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beechside
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Post by beechside on Jun 14, 2016 16:41:06 GMT
but don't spread panic because you did not have time... (Corrected your typo - hope I got it right) I think you're being a little harsh - then again, you'll have to try harder to upset me  However, you asked for my reasons and all I did was summarise (citing links links where practical) what some of our most trusted contributors (CD, Pepperpot and GS3VMIaC) have said. It's their contributions that I collated. I don't think that's spreading panic - you did ask, after all!
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Post by GSV3MIaC on Jun 14, 2016 17:00:32 GMT
I don't think anyone is panicking (I hope not) and I reckon 3 or 4 of them are indeed worth a punt (with the lease extensions confirmed, even the others look a bit better), but IMO it definitely increases platform risk, with a sudden massive exposure to a small segment of the property market, and it would increase lender risk if they just went with the 'prefund everything £xk" approach, for the same reason. Now if SS can pull in a few multi-M£ loans of other sorts, in other places, we could get back to a better balance. Maybe these will all turn out to be few-month loans anyway?
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Post by trevxe on Jun 14, 2016 17:13:57 GMT
I'm in two minds now. Some of the security looks decent enough but there are a lot of unanswered questions regarding the ownership and the companies behind them. I have to ask though whether it really matters as long as the security is solid for my particular loan. It would help hugely if savingstream could answer some of these quite simple questions. ownership? You are put in doubt that what is given as a security is actually owned by the borrower? Rememeber there is a legal team looking after the deals. They would not allow a security on which they cannot legally put a charge on and enfoce it if necessary.This. If the concern is really whether the borrower owns the properties then you can add the lawyers' professional indemnity insurance to the security.
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Post by dualinvestor on Jun 14, 2016 17:17:55 GMT
ownership? You are put in doubt that what is given as a security is actually owned by the borrower? Rememeber there is a legal team looking after the deals. They would not allow a security on which they cannot legally put a charge on and enfoce it if necessary.This. If the concern is really whether the borrower owns the properties then you can add the lawyers' professional 8indemnity insurance to the security. Ever tried to sue a insurer, PI or any other? 
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Jun 14, 2016 17:20:27 GMT
I bet SS employ a good top tier lawyer to make sure everything is done ..... erm ..... ahem ... correctly. errrr ....  |
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Jun 14, 2016 17:29:47 GMT
I bet SS employ a good top tier lawyer to make sure everything is done ..... erm ..... ahem ... correctly. errrr .... Err, yeah, it always ends in tiers 
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Post by trevxe on Jun 14, 2016 17:30:00 GMT
Ever tried to sue a insurer, PI or any other? No, but this would be one of the clearest examples of professional negligence I could imagine. I have been involved in settling cases on behalf on insurers.
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Post by dualinvestor on Jun 14, 2016 17:38:33 GMT
Ever tried to sue a insurer, PI or any other? No, but this would be one of the clearest examples of professional negligence I could imagine. I have been involved in settling cases on behalf on insurers. Well good luck with that, but if this loan fails due to such basic errors do you really believe Lendy Ltd will still be around to sue the lawyers in the first instance?
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lobster
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Post by lobster on Jun 14, 2016 17:47:47 GMT
Right , so are these loans actually going live today or not ? It's now 6.45pm here in the UK, so presumably not ?? Or do SS sometimes release loans very late in the day ?? If SS are now planning NOT to release the loans today, then some sort of communication would be very nice indeed, thankyou very much SS  |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 14, 2016 17:49:28 GMT
Right , so are these loans actually going live today or not ? It's now 6.45pm here in the UK, so presumably not ?? Or do SS sometimes release loans very late in the day ?? If SS are now planning NOT to release the loans today, then some sort of communication would be very nice indeed, thankyou very much SS The previous loan (PBL105) went live at 6:36pm, so they do work late... Got the feeling though we may be waiting until tomorrow for these.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jun 14, 2016 17:56:18 GMT
Maybe they are waiting for the prefund levels to reach the loan amount?
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spyrogyra
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Post by spyrogyra on Jun 14, 2016 17:58:52 GMT
Why would they? They can allocate 100% and release the rest for sale on the platform.
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