nick
Member of DD Central
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Post by nick on Jun 23, 2016 7:38:23 GMT
I think that there is a lot of money parked as cash at the moment waiting for the referendum vote to pass. I'm holding a sizeable cash position which I will immediately invest on the SM if the vote keeps the status quo. I wouldn't be surprised if the bulk of the SM isn't bought by Monday assuming a remain outcome. It was a bit unnerving seeing long queues outside foreign exchange bureaus yesterday - the sooner we get past this referendum the better.
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Tunny
Sometimes it is the people no one imagines anything of who do the things that no one can imagine
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Post by Tunny on Jun 23, 2016 8:00:01 GMT
Lets face it whichever way the vote goes.....Come Friday the sun will rise. We will all go to work. We will buy petrol for our cars, the trains will run (possibly as late as ever). The boys and girls playing games in the money markets will win and loose. Politicians will continue to have affairs.
Nothing is going to change for some time.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Jun 23, 2016 8:03:02 GMT
The bottom line is a couple of decent sized loans need to repay to mop up much of the extra capacity currently seen on the SM
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Tunny
Sometimes it is the people no one imagines anything of who do the things that no one can imagine
Posts: 30
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Post by Tunny on Jun 23, 2016 8:05:13 GMT
Hear Hear !!!
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Post by Deleted on Jun 23, 2016 9:11:49 GMT
I like the present state. Only a few deals on the SM look to be good value to invest in and I now have my limit on everything I want.
With FC and AC becoming just about useless and their good deals now paying back I'm finding SS has opened up the SM at just the right time for me. I may even have to look at TC if Remain win, if Brexit get it then I'll leave my money in the States for the next decade.
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boundah
Member of DD Central
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Post by boundah on Jun 23, 2016 9:24:28 GMT
Lets face it whichever way the vote goes.....Come Friday the sun will rise. We will all go to work. We will buy petrol for our cars, the trains will run (possibly as late as ever). The boys and girls playing games in the money markets will win and loose. Politicians will continue to have affairs. Nothing is going to change for some time. If you think an exit vote will change nothing I'm guessing you don't have any UK shares, or plan to go on holiday overseas any time soon.
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Post by chrisuk on Jun 23, 2016 9:34:30 GMT
Lets face it whichever way the vote goes.....Come Friday the sun will rise. We will all go to work. We will buy petrol for our cars, the trains will run (possibly as late as ever). The boys and girls playing games in the money markets will win and loose. Politicians will continue to have affairs. Nothing is going to change for some time. If you think an exit vote will change nothing I'm guessing you don't have any UK shares, or plan to go on holiday overseas any time soon
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Post by chrisuk on Jun 23, 2016 9:49:03 GMT
If you think an exit vote will change nothing I'm guessing you don't have any UK shares, or plan to go on holiday overseas any time soon. Great! Shall we start an 'in or out' thread?? It will give us something to do while the SM is jammed!! I'll start it. I've got UK shares, I'm going on holiday to Greece soon, I'm 2 years away from State Pension age, and I'm voting 'out'. According to the 'remain' camp I will lose all of my money, my pension will be worth nothing, I'll starve to death and be eaten by a plague of locusts! But hey, I like living dangerously!!
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Post by chielamangus on Jun 23, 2016 10:28:42 GMT
I like the present state. Only a few deals on the SM look to be good value to invest in and I now have my limit on everything I want. With FC and AC becoming just about useless and their good deals now paying back I'm finding SS has opened up the SM at just the right time for me. I may even have to look at TC if Remain win, if Brexit get it then I'll leave my money in the States for the next decade. No belief in the UK, eh, Bobo? Prefer the lottery of the foreign exchange markets? Rhetorical questions, so don't need an answer.
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Post by chrisuk on Jun 23, 2016 10:32:19 GMT
And world war 3 will start, don't forget that. Oh yeah, forgot that one. Germany might attempt to take control of Europe again. Oh, hang on a minute!!
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Post by chielamangus on Jun 23, 2016 10:34:46 GMT
Nothing to do with the title of this thread, but its direction has changed ....
The foreign exchange forecasts of the value of the € against the £ which landed in my inbox this morning suggests a range of 1.10 to 1.46 !! I think I could do a lot better than that. It's all a part of the scary scenarios that people who are frightened of change are painting.
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Post by chrisuk on Jun 23, 2016 10:42:12 GMT
Nothing to do with the title of this thread, but its direction has changed .... The foreign exchange forecasts of the value of the € against the £ which landed in my inbox this morning suggests a range of 1.10 to 1.46 !! I think I could do a lot better than that. It's all a part of the scary scenarios that people who are frightened of change are painting. Is it possible to start an 'in/out' thread? I'd do it myself but I don't how because I'm old and useless and will soon be busy clogging up hospital beds and GP surgeries!
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spyrogyra
Member of DD Central
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Post by spyrogyra on Jun 23, 2016 10:43:59 GMT
If for whatever reasons the SM remains static longer than SS wish for, probably SS may consider an instant investment account paying lower interest, similar to AC. So let's say an investor sells or has a positive balance of £5k and move them into that instant account. At the end of the day the funds in these accounts buy equal parts of each loan available on the SM (excluding any defaulted loans) - so the 5k is spread lets say in 20 loans by £250. The invested money could be released back on the SM whenever the investor wants to. The difference in the interest could be slit b/n SS (to cover the management of these accounts) and a provisional fund to cover any defaults occurring on loan parts in the lower interest account.
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Post by GSV3MIaC on Jun 23, 2016 10:49:18 GMT
/mod hat on
Quit with the Brexit in/out arguing already .. OK? I don't care if it's rhetorical, or whimsical, just don't do it here. Thanks.
/mod hat off
Back on topic .. as was discussed many moons ago, SS cannot (safely, sensibly) be used as a 12% instant access account. There is no 'market', as such, because there is absolutely no balancing mechanism for supply/demand (Ok, except maybe cashback). The argument of 'the SM is there for, and works well for, people wanting to get out' is (and always was) spurious, as can be seen today, as was the suggestion that 'you can get in by just buying a lot of the current loan on pre-fund, and then sell half to prefund the next one, etc. etc.'. You can't, reliably or safely. The current glut will go away if we get a repayment (and not too many new loans), but it can/will happen again, at any time, and could persist for some unknown duration. That's why it would be nice if loans repaid on/around the due date (or at least got properly re-floated, with a 'don't roll me over' exit option).
Yes, there certainly are issues on platforms where selling or buying at a discount/premium is possible, but liquidity (at a price) is much better most of the time, whichever way you want to go (I can buy or sell almost ANY FC or ReBS etc loan that ever was, if I'm willing to pay for the privilege, at any time). Liquidity in only one direction is NOT 'liquidity', at least by my definition, so the SS SM doesn't have it.
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Post by robberbaron on Jun 23, 2016 12:35:52 GMT
Exactly the point I was trying to make less eloquently on another thread. I'm of the opinion that the extraordinary liquidity on the sell side that we experienced before was mostly due to people gaming the free auto credit facility provided by SS. They were essentially one-sided market makers paid unknowingly by SS to provide liquidity. As soon as the 7-days rule was established this activity ceased to be profitable and the "one-sided market makers" vanished.
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