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Post by buttchopf23 on Jun 28, 2016 13:43:21 GMT
Hello
Just saw these new loans issued by Banknote. Is anybody going to buy these? Not for me, hopefully Banknote will increase the yields..
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Post by dagoatla on Jun 28, 2016 17:14:52 GMT
With the recent constant drops in rates with each new release of banknote loans, I am moving funds out of Mintos into other platforms, as I have a number of Mogo loans, but prefer the shorter term loans. At least Creamfinance have increased to 12.5 again. They were low for a while too. i can't see these banknote loans selling well at all.
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Post by saraph on Jun 28, 2016 22:42:12 GMT
8.6% is a joke. I'm not investing in that even for diversification. I'd like it to be above 12% at least.
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Post by buttchopf23 on Jun 29, 2016 4:53:35 GMT
surprisingly they seem to sell... lets hope that these were AI only which were not implementet with a minimum interest rate.
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Post by gmaxkenny on Jun 29, 2016 14:21:06 GMT
I cant understand why anyone one would buy a 24 month loan at this low rate. How can anyone think this is a good deal? Maybe some excuse if investors buy very short term ones to keep their money reinvested but it makes it harder for the rest of us as it makes it more likely loan originators will lower their rates.
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Jun 29, 2016 15:16:35 GMT
invoice financing by both capitalia and debifo looks attractive given their short duration and track record. nevertheless, majority goes without buyback.
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Post by extremis on Jun 29, 2016 16:10:47 GMT
invoice financing by both capitalia and debifo looks attractive given their short duration and track record. nevertheless, majority goes without buyback. Most invoice financing loans have 1 month term (or even less) and come without buyback guarantee; that means the default rate should be significantly less than 1% in order to make a profit. Banknote recent loans are a huge disappointment. Either their plan is to get some funds cheap from people with bad Auto invest profiles, or they are in some kind of financial trouble. I only hope the first scenario is true, cause i have invested in several of their loans and would like to see them keep their promise of buyback guarantee as personal loans have a very high rate of default.
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Post by gmaxkenny on Jun 29, 2016 16:53:49 GMT
You could well be right,I have turned off my auto invest with Banknote until things become clearer.
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yacop
Posts: 68
Likes: 42
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Post by yacop on Jun 29, 2016 18:46:58 GMT
I am not investing in Banknote loans anymore. Yield is laughable.
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Post by littleinvestor on Jun 30, 2016 17:24:13 GMT
under 12% is indeed too little of a yield, they should understand that this type of investment is still considered as high risk given its unregulated nature and with the potential risk for total loss, 8% is not appropriate reg. risk/reward
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Post by dentex on Jul 1, 2016 7:55:40 GMT
No news from Mintos about Banknote???
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Post by thep2pinvestor on Jul 1, 2016 16:37:01 GMT
For Mintos, Banknote is a customer/provider. It's not up to Mintos to tell Banknote what the appropriate rate is. It's up to all of us by refusing to buy. But apparently that doesn't work. Even though the subscription seems very slow, there are people buying at 8,6 %.
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Post by dagoatla on Jul 1, 2016 23:43:02 GMT
They have been slowly dropping the rate for the last few months, but this latest drop is a bit of a joke, I still have a few 13.9% banknote loans which are due for buyback this month. It's a pity the Creamfinance sell so quickly, since they are still offering 12.5%, but I have noticed a lot of 3-5 day duration loans being released recently
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Post by extremis on Jul 5, 2016 9:21:19 GMT
They just issued loans with 9.9-12% interest rate. Better than 8.6%, but still low, imho.
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Post by Whitbourne on Jul 6, 2016 23:02:40 GMT
Hello board,
I am a bit puzzled by this discussion. Loan originators on Mintos have a wide range of rates depending on the geography and loan type, as low as 5.5% from ACEMA in the Czech Republic for mortgages and up to 15% from Hipocredit in Latvia (and as people have said it used to be as high as 18%). Different rates, maturities and risk profiles suit different investors. Someone with a large portfolio may well want some exposure to Banknote for diversification. If an investor does not want to invest at 8.6% when very similar loans (with buyback guarantee) are available at 12.5% then that is a rational position. It is certainly my strategy! There is an easy solution: don't invest (set the Auto Invest parameters accordingly). Auto Invest is a very powerful feature on Mintos.
You can use a lot of energy looking for rationality or trying to understand others' logic. My advice would be that it's not usually a good use of time. The more investors and originators there are on Mintos the better for all of us. Let others do what they will - live and let live.
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