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Post by trainman on Jun 27, 2016 9:38:30 GMT
I believe there is a fiddle here somewhere a bit like buying more than you can afford and selling on before the dead line to pay up.......but haven't quite got there yet.......old timers disease could be affecting my judgement  Im new to this kind of investing, but i think SS are doing a v-good job at the minute and do listen to what the investors are saying if someone puts up a loan part for sale, im all for the interest stopped being paid to the investor and paid into the provision fund, if this is right what happens if you then cancel your sale you should only get Interest from the day you cancelled,and not expect all interest paid from the day it went on sale. if interest is payed into the provision fund, is that making the SS investments more secure in case off any defaults in the long term to get your capital repaid and aviod any losses
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Post by geraldine1210 on Jun 27, 2016 12:04:35 GMT
I think if ss covertly bought up the sm (obviously not including the default) and slowly released it back, it would get things moving again.
Maybe lottery winner could clear it.
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spyrogyra
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Post by spyrogyra on Jun 27, 2016 12:05:11 GMT
In regards with the interest on parts for sale, can you provide a link for this last statement?
Below is something I posted on another thread but that has bearing to the liquidity on the SM.
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 Deleted on Jun 27, 2016 12:20:46 GMT
I don't think interest should be regained just because you cancel the loan. This will just encourage people to place even larger amounts in secondary market queues and then if it doesn't sell they just need to cancel before the end of the month without any loss of interest.
Will be interesting to see if many of the secondary market loans get cancelled just before the end of the month, then placed back on the market the next day.
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Post by robberbaron on Jun 27, 2016 13:31:18 GMT
We all know that when you put your loan parts on the SM you don't earn any interest. Well instead of this money going toward SS' Ibiza party fund... The SM would still be as simple as it is now and would be much more liquid. Everybody wins! Well except SS' Ibiza party fund The parenthesis of those comments on this P2P board are factually incorrect. I have taken the time to go back and review the previous posts made by Saving Stream; p2pindependentforum.com/user/143/recent?page=3I quote the following, as well as highlighting and underlining the relevant section;
Interest will be earned whilst loan parts are for sale. The reason we don't currently offer this is to discourage gaming of the SM by people not paying for their parts and still earning interest. The interest currently goes into the Provision Fund but are happy to amend this.
Anything to add with regards the SM whilst we are focussing on this?
The provision fund is still sitting at exactly 2% despite the volume sitting on the SM. Clearly the missed interest payments are not being used for that anymore. I think the missed interest payments should either be used to increase the provision fund beyond 2% or to help relieve the SM overhang. Note: I don't think SS is doing anything wrong
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sl75
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Post by sl75 on Jun 27, 2016 14:53:47 GMT
I don't think interest should be regained just because you cancel the loan. This will just encourage people to place even larger amounts in secondary market queues and then if it doesn't sell they just need to cancel before the end of the month without any loss of interest. Will be interesting to see if many of the secondary market loans get cancelled just before the end of the month, then placed back on the market the next day. I disagree. This has a positive effect by allowing those stuck in a long queue to reconsider how much of a "sale fee" they're willing to pay. The "sale fee" effectively goes up every day by the same amount as the interest, but if you choose not to sell, you don't pay the sale fee. As people stuck in a long queue cancel their sales order, everyone else moves forwards resulting in a faster sale than if the people stuck in the long queue had no incentive to cancel. The only other thing that I'd think savingstream should do for fairness is to cancel any pending sales when a loan is redeemed (so that people who didn't sell because of the repayment are treated the same as those who didn't sell because they cancelled the sale).
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pom
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Post by pom on Jun 27, 2016 15:08:56 GMT
The provision fund is still sitting at exactly 2% despite the volume sitting on the SM. Clearly the missed interest payments are not being used for that anymore. I think the missed interest payments should either be used to increase the provision fund beyond 2% or to help relieve the SM overhang. Note: I don't think SS is doing anything wrong Why would you expect interest to be credited to the fund before the monthly interest payment run ?
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Post by robberbaron on Jun 27, 2016 15:43:16 GMT
I expect the interest payments to be made into the Provision Fund at the end of each month. The PF is always showing as 2% no matter what. Therefore there is no link between missed interest payments and the PF.
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