boble
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Post by boble on Jul 9, 2016 18:46:35 GMT
I have been considering how an additional trading option, Loan Swaps, may pan out in practice. As far as I am aware this isn't a current proposal; just something I have thought about.
I think this could be very positive, as it would directly connect investors who have loans each other would like and make the (any size) part loan swap.
What I haven't been able to figure out, is where this would have a profoundly negative effect on the SM; for example, would it seriously frustrate new investors and those wish to significantly increase their investment level. I don't think it would become a "closed shop", as the range/combination of loans traded would be very diverse.
My thinking is that this may be a relatively simple way of investors getting where they want to be. The platform would be able to monitor/account for the transactions in a similar form to the SM.
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stevio
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Post by stevio on Jul 9, 2016 19:29:08 GMT
I think it has potential
I can see the idea maybe working on other platforms too. If it was ok with you, I would suggest moving this to General?
It would most likely need to be done via the platform, so everything was above board
I would envisage maybe a thread where you message a few loans you have and a few you would consider 'swapping' them for. Then PM each other to arrange a mutual time when you both list your loan for sale
How would the forum Mods feel about this?
I don't see it being a negative thing, as normally the swappers are unlikely to list if the loans they want are available, so not selling has the same effect. This way at least it helps people diversify, which can only be a good thing for those involved, including the platform
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 9, 2016 19:40:29 GMT
I have been considering how an additional trading option, Loan Swaps, may pan out in practice. As far as I am aware this isn't a current proposal; just something I have thought about. I think this could be very positive, as it would directly connect investors who have loans each other would like and make the (any size) part loan swap. What I haven't been able to figure out, is where this would have a profoundly negative effect on the SM; for example, would it seriously frustrate new investors and those wish to significantly increase their investment level. I don't think it would become a "closed shop", as the range/combination of loans traded would be very diverse. My thinking is that this may be a relatively simple way of investors getting where they want to be. The platform would be able to monitor/account for the transactions in a similar form to the SM. It's a good idea, but I think the FCA might view this as insider trading, so it might be frowned upon.
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stevio
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Post by stevio on Jul 9, 2016 19:45:13 GMT
How would the forum Mods feel about this? What do the forum MODs have to do with the OP topic? I mean the input from MODs is welcome on any post, but surely their input is in a personal capacity, as with any other forum user? I wondered if the forum would agree to it being used in this way
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stevio
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Post by stevio on Jul 9, 2016 19:50:21 GMT
I have been considering how an additional trading option, Loan Swaps, may pan out in practice. As far as I am aware this isn't a current proposal; just something I have thought about. I think this could be very positive, as it would directly connect investors who have loans each other would like and make the (any size) part loan swap. What I haven't been able to figure out, is where this would have a profoundly negative effect on the SM; for example, would it seriously frustrate new investors and those wish to significantly increase their investment level. I don't think it would become a "closed shop", as the range/combination of loans traded would be very diverse. My thinking is that this may be a relatively simple way of investors getting where they want to be. The platform would be able to monitor/account for the transactions in a similar form to the SM. It's a good idea, but I think the FCA might view this as insider trading, so it might be frowned upon. Insider trading is when you have knowledge of the business that you use to make a profit Here no knowledge is being transferred, loans I presume traded at par so no profit made, merely just diversification However complications like this was precisely why I asked if the Mods would be ok with this
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 9, 2016 20:06:02 GMT
It's a good idea, but I think the FCA might view this as insider trading, so it might be frowned upon. Insider trading is when you have knowledge of the business that you use to make a profit Here no knowledge is being transferred, loans I presume traded at par so no profit made, merely just diversification However complications like this was precisely why I asked if the Mods would be ok with this I do apologise, I missed the part of your post where you said, " I would envisage maybe a thread where you message a few loans you have...." I guess that swapping loans would not be considered as Insider trading (although, I am certainly no expert), but it's a behind closed doors factor that the FCA might not like.
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spiral
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Post by spiral on Jul 10, 2016 7:41:56 GMT
I would like to be able to do this to transfer from me to my wife and vice versa (even if it wasn't available as INPL) as it would enable us to balance out tax affairs and get rid of shrapnel to boot.
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boble
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Post by boble on Jul 10, 2016 10:02:36 GMT
Insider trading is when you have knowledge of the business that you use to make a profit Here no knowledge is being transferred, loans I presume traded at par so no profit made, merely just diversification However complications like this was precisely why I asked if the Mods would be ok with this I do apologise, I missed the part of your post where you said, " I would envisage maybe a thread where you message a few loans you have...." I guess that swapping loans would not be considered as Insider trading (although, I am certainly no expert), but it's a behind closed doors factor that the FCA might not like. The idea I have floated includes it being fully integrated into the SS platform. It would simply be another means of selling and buying part loans. I wanted to sound out the idea with investors before putting it to Tim and Liam. Responses so far are positive, however, very limited. If this is an idea investors would like to support (or not), your feedback would be greatly appreciated.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 10, 2016 10:04:25 GMT
I do apologise, I missed the part of your post where you said, " I would envisage maybe a thread where you message a few loans you have...." I guess that swapping loans would not be considered as Insider trading (although, I am certainly no expert), but it's a behind closed doors factor that the FCA might not like. The idea I have floated includes it being fully integrated into the SS platform. It would simply be another means of selling and buying part loans. I wanted to sound out the idea with investors before putting it to Tim and Liam. Responses so far are positive, however, very limited. If this is an idea investors would like to support (or not), your feedback would be greatly appreciated. ... You should definitely add a poll to your OP 
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jonah
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Post by jonah on Jul 10, 2016 10:18:16 GMT
Integration with the site seems unlikely as it would add complexity but not help SS grow.
As a consumer though the ability to offer say £100 in pbl X to swap for pbl Y would be one I would use to help balance up. Especially if offers didn't stop accruing interest.
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ped
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Post by ped on Jul 10, 2016 10:33:08 GMT
Just not seeing the benefit to SS, SM has its ups and downs but it is what we have.
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Post by pepperpot on Jul 10, 2016 11:33:31 GMT
I agree there would be no direct benefit for SS to implement, but indirectly... making customers happy, maybe. However, I'm not sure it would be all that useful in the long term, we will all want a piece of the very attractive loan Y and be willing to pay for it with the dodgy looking loan X. I can see it just reflecting the current SM, small Y's that everyone wants a bit of will not be available, whilst there's tons of X's to choose from.
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gt94sss2
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Post by gt94sss2 on Jul 10, 2016 12:14:29 GMT
As others have said, I can't see the value of this - to SS or too lenders who can buy sell on the SM as now.
It would add unneeded complexity to the site - and even if the FCA didn't object using such a system would be against the ISA rules which I presume meeting is a higher priority for SS.
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stevio
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Post by stevio on Jul 10, 2016 12:56:29 GMT
I do apologise, I missed the part of your post where you said, " I would envisage maybe a thread where you message a few loans you have...." I guess that swapping loans would not be considered as Insider trading (although, I am certainly no expert), but it's a behind closed doors factor that the FCA might not like. The idea I have floated includes it being fully integrated into the SS platform. It would simply be another means of selling and buying part loans. I wanted to sound out the idea with investors before putting it to Tim and Liam. Responses so far are positive, however, very limited. If this is an idea investors would like to support (or not), your feedback would be greatly appreciated. I would be in favor of connecting via this forum and agreeing to place loans for sale at a mutual time on the existing SM to allow each other to buy and sell and effectively swap their loans - this allows people to increase their diversity, that they might not get through the SM alone - there would need to be mutual agreement of what loans to swap between two investors prior to selling, so the loans would need to be equally attractive to each party I would not be in favor of SS (or any other platform) integrating this into their SM I can see this maybe working better on Ablrate or MT
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david42
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Post by david42 on Jul 10, 2016 14:09:51 GMT
As others have said, I can't see the value of this - to SS or too lenders who can buy sell on the SM as now. It would add unneeded complexity to the site - and even if the FCA didn't object using such a system would be against the ISA rules which I presume meeting is a higher priority for SS. The value to SS is that some lenders would be able to increase their lending if they could reduce the risk by spreading their loans more evenly. The value to lenders arises because we cannot buy and sell on the SM right now. Today I have been monitoring the SM all day and have managed to make only two trades in the loans I want totalling less than 1% of my unfilled targets. The SM is always either in feast or famine, so trying to diversify with the current SM is always a challenge. It also requires either keeping a cash buffer that is not earning or using INPL and hoping to sell loans before SS take umbrage. It is also prohibitively time consuming. I can see no reason for the FCA to object or for a problem with the ISA rules if SS added a loan swapping market. Swaps at arms length through an open market should present a level playing field. The additional complexity should be minimised by careful design of the user interface so that it would effectively be hidden from users who just wanted to buy or sell loans.
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