mikes1531
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Post by mikes1531 on Apr 30, 2014 15:02:44 GMT
I agree with the others. The comments made on the original proposal show that it could be improved, but I've seen nothing to suggest that there's anything critically wrong with the first version. It should be implemented on 1/May as scheduled and we can see how it goes. Then SS can add the feedback from the SM's operation to the comments/suggestions already received and go to work improving it.
One of the biggest drawbacks noted was the handling of accrued interest, but we won't know whether or not this is a problem in practice until we see the SM in action. If the experience of the £5k chunk of a loan offered up yesterday is anything to go by, it may not be an issue. That became available at the end of the day, and was taken up completely by this morning.
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Post by elljay on Apr 30, 2014 16:58:44 GMT
+1 for something now followed by an improved version later.
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j
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Post by j on Apr 30, 2014 22:08:03 GMT
I agree with the others. The comments made on the original proposal show that it could be improved, but I've seen nothing to suggest that there's anything critically wrong with the first version. It should be implemented on 1/May as scheduled and we can see how it goes. Then SS can add the feedback from the SM's operation to the comments/suggestions already received and go to work improving it. One of the biggest drawbacks noted was the handling of accrued interest, but we won't know whether or not this is a problem in practice until we see the SM in action. If the experience of the £5k chunk of a loan offered up yesterday is anything to go by, it may not be an issue. That became available at the end of the day, and was taken up completely by this morning. Pretty much agree with above too. My input though is once the basic system is tested the sophistication level is geared up relatively quickly with some beta testing in background of the initial basic one. This will make savingstream look & be very developed & much more attractive to existing & potential new members. A Q&A section would not go amiss either
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Investor
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Post by Investor on May 1, 2014 16:32:25 GMT
Secondary market is now live on the website.
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andy2001
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Post by andy2001 on May 1, 2014 16:45:29 GMT
According to there email you stop getting interest when the loan unit is put up for sale, even if it's not sold.
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spockie
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Post by spockie on May 1, 2014 16:51:50 GMT
Just picked up a part. Doesn't look as if parts will hang around for long as I was beaten to the other one I was going to buy.
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Investor
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Post by Investor on May 1, 2014 16:59:16 GMT
Hi Ben, the complication arises when you factor in multiple buyers of the same loan part buying 10% of it today, 20% of it tomorrow etc.. the amount of interest would be reducing on a daily basis and make interest return calculations very complicated for sellers. Our indications from this forum was that investors like the uber simple SS model and we have factored this simplicity in to the secondary market offering. This is why we have chosen to freeze interest at point of placing loan part for sale. If the loan part sells immediately that day, then SS makes nothing. If it takes a day or two to sell then SS does make that interim interest. We intend to use any surplus interest that the secondary market generates to build a Saving Stream Provision Fund to benefit investor security. Andy I believe this answers, or at least begins to answer, your question. On a separate point this thread commenced with the quote "We can confirm there will be a secondary market for Saving Stream loans by 1st May 2014.". Low and behold 1st May comes and we have this new system live and available. Very rare to see things like this happening to the original established timescales so congratulations to SS for again showing us their commitment to open and honest discussion and information sharing. Will be interested to see the uptake on the secondary market, lots of previous discussion from members in this thread as to how it should be deployed and hope to see those with strong views start to sell some of their loan parts to show just how important this new system is to them. I will of course be buying them.
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Investor
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Post by Investor on May 1, 2014 17:03:05 GMT
Just picked up a part. Doesn't look as if parts will hang around for long as I was beaten to the other one I was going to buy. People selling them and buying them back to test the system? Wonder if we need a setting on the loans page for it to auto-refresh every x seconds so we can see new loan parts live.
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Post by savingstream on May 1, 2014 17:11:49 GMT
Thanks SSInvestor for the sentiments. We feel there will definitely be a development curve for this secondary market. We identified an issue where a seller sucessfully sells their loan part, but to a buyer who has funded their account via GoCardless and the funds haven't cleared into SS account yet. This means that if the seller requests a withdrawal there would be a delay in processing this withdrawal until the buyer's funds clear from GoCardless.
Ideally we would like to remove the GoCardless offering as it is expensive (for Lendy) and has lengthy time delays. However this would rely solely on FPS/BACS transfers until we could arrange debit card deposits and we are aware of how much our investors like the convenience of the GoCardless facility. However as you experience it as a selling investor, you may start to experience the negative aspects of the GoCardless facility.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on May 1, 2014 17:32:01 GMT
I've just put up a loan part on the converted lifeboat if any of you are interested  I stuck to a whole loan part to test the simple option to begin with and see how long it takes to go. I might try the percentage option next time. I'll probably be putting up a few more once that one goes as I do have a need for a bit of money at the moment. Edit: OK, it's going fast. A really neat indicator on my new Selling/Sold loan parts tab tells me it's over 61% gone in less than 10 mins (was £1,800 in total). |
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Investor
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Post by Investor on May 1, 2014 17:41:48 GMT
Thanks SSInvestor for the sentiments. We feel there will definitely be a development curve for this secondary market. We identified an issue where a seller sucessfully sells their loan part, but to a buyer who has funded their account via GoCardless and the funds haven't cleared into SS account yet. This means that if the seller requests a withdrawal there would be a delay in processing this withdrawal until the buyer's funds clear from GoCardless. Ideally we would like to remove the GoCardless offering as it is expensive (for Lendy) and has lengthy time delays. However this would rely solely on FPS/BACS transfers until we could arrange debit card deposits and we are aware of how much our investors like the convenience of the GoCardless facility. However as you experience it as a selling investor, you may start to experience the negative aspects of the GoCardless facility. As general feedback from an investors perspective, I have found that FPS (even from Barclays) is often not as F as it is supposed to be. A transfer in today from my account took about 2-3 hours until it was available on the site for me to use. I have found historically that given the lending speed for some of the smaller loans I often find myself in a situation where I receive a 'new loan available' email, transfer the relevant investment in via FPS and then hope that some of the loan is left once the money has hit the site. Given that loans come up fairly infrequently at this stage, I am not keen on leaving funds available for investment awaiting a new loan. I think I have only made one payment via the GoCardless system and if memory serves that was available immediately for investment so seemed like I would be more likely to 'get in' on that loan, however I also appreciate the cost to you and your request to make larger payments (5K+) via BACS, so have avoided using the GoCardless system. I do use debit card deposits on most of my other P2P accounts and find that funds are generally immediately available so certainly will be a much better route for getting the money through the 'bank to borrower' cycle in the most effective way possible. Just my tuppence worth and the sentiments are well earned. Keep up the good work
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Investor
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Post by Investor on May 1, 2014 17:50:38 GMT
And just to test that my memory was correct I have paid in via GoCardless, money was there instantly, and I was able to pick up a part of RR's sale.
At least we will now how much of a delay this puts on the payment to seller time.
RR - will pick up any surplus if it is still there later
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on May 1, 2014 18:00:18 GMT
I've put up a couple of chunks of two other loans that newcomers won't have parts of. They are whole chunks because there's a bug in the 'partial percentage' code, which I've reported separately to SS - so that doesn't work at the moment. In light of how fast the other chunk went I thought I'd just go for it with the other two. I'm afraid that will liberate what I need for the moment, so you'll have to rely on someone else if you want any more  |
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Post by marek63 on May 1, 2014 18:01:38 GMT
I have put a couple of parts up for sale and want to diversify with the resulting cash into other boats. Hopefully, as this is fee free apart from lost interest it will work as we all shuffle loan parts around. Lets see...
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Post by marek63 on May 1, 2014 18:05:01 GMT
Wow - this moves quickly! And I have sold parts of two loans which seemed to work fine using the £amount rather than percentage. Instant diversification is very comforting from my perspective. Although given that we are lending to Lendy Ltd rather than the final owner, is that all an illusion?
Editing again - the ability to spread maturity profile is still helpful so that you are not left trying to re-invest all the cash in a short period.
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I stuck to a whole loan part to test the simple option to begin with and see how long it takes to go. I might try the percentage option next time.
