andyb
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Post by andyb on Jun 16, 2016 5:21:04 GMT
I have seen a couple of posts now from investors saying they are leaving SS because the platform has lost its liquidity due to the clogged up SM.
Is this partly our own doing though? I mean sure I understand that loads of people wanted to have a clear out ready for all the new loans but has it gone to far now?
it seems the vast majority of new stuff has been and gone, yet the SM is completely jam packed and not moving. Maybe we can resolve this by reducing the amount we are selling for the time being. What's to lose? At the moment you are not getting any interest for the loans just sat on the SM and you certainly ain't getting close to selling any of it.
or am I wrong?
cheers
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NSFW
Posts: 118
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Post by NSFW on Jun 16, 2016 5:29:44 GMT
Perhaps some haven't even bothered trying to figure out an allocation percentage so bought wayyyyy more than they should, SS noticed and decided to give us all a spanking. Poor timing though with Brexit coming up.
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Post by gaspilot on Jun 16, 2016 5:54:28 GMT
A quick calculation seems to indicate that SS are saving ~£400 per day in interest payments with the amount that is up for sale on the SM at the moment.
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andyb
Posts: 69
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Post by andyb on Jun 16, 2016 6:04:30 GMT
Yikes, thanks for the maths that's a lot of money  i dont have have a penny on there, I don't want to lose any interest so will wait a week or so till its clears |
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Post by gaspilot on Jun 16, 2016 6:22:58 GMT
It should clear very rapidly if some of the loans marked as 'expected' or 'probable' repayment soon actually get redeemed.
In total there's roughly £1.2M on the SM at the moment and roughly £12M about to repay (apparently!).
The SM would return very quickly to its usual state of nothing to buy I expect. Except the defaulted one obviously.
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jimbob
Member of DD Central
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Post by jimbob on Jun 16, 2016 6:43:07 GMT
I'm selling £60 of farmland through the SM - it's getting there, albeit slowly.
The only sub 30 day loan I still hold is 33, but that has a very low LTV so not going to bother selling my current £30 chunk of that.
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spiral
Member of DD Central
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Post by spiral on Jun 16, 2016 7:42:46 GMT
I joined SS in Jan and yesterday I spent about 2-3 hours looking for (and achieving) my desired spread of loans. I have waited 6 months for this. I will have to overfund my account for a week or 2 until the SM settles and I can offload those I no longer want but on the whole, yesterday was the happiest day of my SS life. |
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Post by wilf on Jun 16, 2016 7:56:51 GMT
Similar, I have also balanced the books by being able to buy loans I not seen or been quick enough to buy on the SM.
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awk
Posts: 276
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Post by awk on Jun 16, 2016 7:57:49 GMT
Calm down, calm down, I expect that the SM will be back to normal (nothing for sale except the Garden Centre) within a couple of weeks and possibly a lot sooner. If you forget the mechanics of individual loans and just think at the gross platform level, then the question is how quickly the platform can absorb £14m (inc Fife) of new loans (ie net new investment). Experience of previous new loans has shown that it can quickly pull in £3m or £4m (money easily to hand elsewhere) and a lot more over a week or so as people (including some Big Hitters) move money around and invest. But it might not be £14m if/when other big loans repay - if 035 was to repay in the next few days, then that's £3.5m in one hit. I was actually beginning to worry that too many repayments with nothing new to invest in could lead to a net withdrawals. Think what would have happened if this had been launched as one big £14m loan - maybe £5m-£6m would have been taken, there would have been a few days of SM activity until maybe £6m was left with the underwriters - it would then take a week or so for that to be nibbled down to zero. Splitting it into 10 loans has meant that initially it was all taken, some will not be able to pay or sell other loans, SS will relist, etc, etc But the end result will be the same.  |
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nick
Member of DD Central
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Likes: 825
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Post by nick on Jun 16, 2016 8:39:21 GMT
I think the SM market is functioning very well and liquidity has significantly increased as the market has become more balanced. The previous state of play was very one sided with overwhelming demand and no supply. Even now there is only £2.2M available versus a loan book of £88.5M, representing 2.4% is still very low. Behaviour is also starting to normalise and investors are beginning to discriminate on loans in line with their perceived merit/risk which was previously absent due to the extreme supply/demand distortion. This is how a proper market is meant to work. However, I suspect liquidity will again dry up over the course of next week.
Its a timely reminder that we shouldn't take the previous ability to instantly sell most loans for granted and that we should ultimately be comfortable with holding loans to maturity. The positive is that should be easier to reinvest interest and new capital which I for one welcome.
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Post by supernumerary on Jun 16, 2016 8:45:41 GMT
A quick calculation seems to indicate that SS are saving ~£400 per day in interest payments with the amount that is up for sale on the SM at the moment. I haven't added up the amount on the secondary market, BUT others have mentioned £2 million. One months interest (31 days) on £2 million equates to £20,000. 1 days interest on £2 million, equates to £20,000/31 approx. which equals £645That saved interest for Saving Stream, I believe and I stand to be corrected, goes to the Saving Stream provision fund.
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Post by supernumerary on Jun 16, 2016 8:57:38 GMT
I have seen a couple of posts now from investors saying they are leaving SS because the platform has lost its liquidity due to the clogged up SM. Is this partly our own doing though? I mean sure I understand that loads of people wanted to have a clear out ready for all the new loans but has it gone to far now? it seems the vast majority of new stuff has been and gone, yet the SM is completely jam packed and not moving. Maybe we can resolve this by reducing the amount we are selling for the time being. What's to lose? At the moment you are not getting any interest for the loans just sat on the SM and you certainly ain't getting close to selling any of it. or am I wrong? cheers If people have started to panic, then they really need to chill out. Investors can see their loans slowly moving to the head of the queue and eventually those loans will be sold. A VERY large secondary market like this, attracts new investors onto the platform, so for Saving Stream it is a win win situation, because while those loans remain on the secondary market, the interest saved (I do believe), helps increase the Saving Stream Provision Fund.
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Post by gaspilot on Jun 16, 2016 9:06:17 GMT
A quick calculation seems to indicate that SS are saving ~£400 per day in interest payments with the amount that is up for sale on the SM at the moment. I haven't added up the amount on the secondary market, BUT others have mentioned £2 million. One months interest (31 days) on £2 million equates to £20,000. 1 days interest on £2 million, equates to £20,000/31 approx. which equals £645That saved interest for Saving Stream, I believe and I stand to be corrected, goes to the Saving Stream provision fund. Yes, I just did a very quick rough calculation using £1.2M on the SM.
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Post by gaspilot on Jun 16, 2016 9:11:41 GMT
Just had a quick calculation and there is indeed over £2M on the SM at the moment.
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Post by GSV3MIaC on Jun 16, 2016 9:23:31 GMT
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