investor evening

We could agree that it is "failure to manage the loans in line with lender expectations". IMO the lack of clear overrun strategy (penalty interest rate, refinance after X month late so people can exit, etc. etc) is rather poor compared to AC for instance, however the actual size of the overrun is pretty good compared to SS for instance, where we have several loans more than 6 months past due day. Given the borrowers can always repay early, they really ought to have been a bit more realistic/pessimistic on the end dates, IMO (and there are a couple of loans where what the bridge was for, from where to where, was totally vague).

But sadly I can't attend .. I don't 'do' London (if I can help it) and anyway my doctor says I should reduce my platitude intake. 8>.

I reduced my FC holding by 50% some months ago during the ipad feeding frenzy and apart from a few "nearly done" SME loans FC for me is now purely property (don't have a bot and have better things to do with my day than sitting at home waiting for snippets of D and E loans).

I was concerned about property development exposure to a down-turn after Brexit so I have since have sold any London/SE loans over 60% LTV and only kept a few others closer to 70% that I was comfortable with. This brings my FC holding down to 1/3rd what it was and I now only reinvest interest/repayments in sub 50% property loans if I can. This seems a reasonably safe approach to protecting capital.

I agree on rates, FC purely for plarform diversity..... however can't imagine drilling rigs providing a solid basis for security at current oil prices 

I was at the investor evening, but only joined this site recently. Here are some of the notes I took:

On defaults:
Would expect x2 as many liquidations in the UK economy in recession relative to today

Expect 45p in the £ recovery on average 5 yrs after default (for SME loans)

If you expect a recession over lifetime of investment then A+ will give better yield after losses than E; if expect a good economy then E will give better yield than A+


On property lending (which is all I use the site for now):
Saw a -19% property price drop around 2008; Have scaled back property lending recently to be below 70% LTV
Big lenders moving away from Property lending currently (why? didn't ask this)

8 in property finance team


I thought the people who presented on the evening were credible and came across as proficient. They all alluded to having their own personal money at play on the platform. 

happy your comments in this thread very closely align with my views and approach to FC these days.

I think this was due to the end of Cashback and better opportunities elsewhere.

I still have some property loans here (mainly 10%), a few SMEs which are too good to sell even at 3% premium and some Ds and Es which I'm a little nervous about.

I agree with FC's over all handling of property to be concerning. However, I have no intentions of holding property loans past the 3 month before maturity point. I think anybody who uses FC for diversification in this way is probs the way too go. I want to fully pull my stake out of other loans on there site as the PG's offered by borrowers are total guess work from what other users experiences expressed on this site, further more there risk bands seem to be totally mis represented for actual risk from what I saw even just 5-6 months ago. Many loans hold 100's k of debt but still achieve the a* risk band rating. I've found that FC do have good liquidity as I was able to sell £700 in roughly 45 mins at .3-.4 percent premiums the other day.