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Post by eascogo on Jun 24, 2016 2:41:17 GMT
Aside the progression of remain/leave on TV right now I am following with interest an investment in BM by an acquaintance. You start by choosing one of two diversifications proposed -- either 1% or 2%. If selecting the 2% option your money (min. £1,000) is divided into 50 equal chunks that are invested over 50 separate loan parts. Bear in mind that distribution of 50 parts can take two weeks or longer so lowering returns to much less than average in month 1. Parts are allocated to a variety of sectors -- bridging loans, invoice discounting, property development, business expansion,working capital, at rates of between 6% and 15%. LTV is mostly around 50% or lower with a sprinkling of 70%. A high 80% LTV looks to apply to Invoice discounting only. My impression is of a meticulous and cautious approach that inspires confidence. The "fire and forget" approach mentioned by dermot will appeal to investors who want an easier time with investing whilst still getting a respectable return of 7% or 8% after fees and losses. There is ample and clear information given about each and every loan part invested. I can also think of a time when the job of selecting and keeping the books for a hundred or more loans may become a burden. The advantage of concentrating investments in a single platform that does the heavy work begins to look attractive. Making it easier for an executor to deal with financial matters may be worth keeping in mind. Now I wonder if the threat of Brexit is bearing on me. Or am I just getting tired?
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pauls
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Post by pauls on Jun 25, 2016 13:29:08 GMT
I dipped a toe in the water with a modest £1k to test. How popular does a P2P site need to be to get its own subforum? I too dipped a toe in the water and I am liking the Summary Page and service so far. A second vote for a subform page from me :-)
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Liz
Member of DD Central
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Post by Liz on Jun 25, 2016 14:07:36 GMT
I wouldn't use Bondmason, because I like to do my own Duedil, and to choose my own risk(My portfolio has over a 12% yield) and have the time(and knowledge, since i have invested in p2p since 2012), but if you don't have the time I think Bondmason is great. Compare it to Thincat's Lending clubs, where they charge 0.5%, and do no due dil, you have no platform diverification, and very little loan diversification, then Bondmason is far superior.
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guff
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Post by guff on Jun 25, 2016 15:07:50 GMT
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Post by stevefindlay on Jun 26, 2016 9:57:22 GMT
guff We are still waiting for the FCA to complete their approval processes - for ourselves and for the underlying platforms we use. And this is moving a little slower than hoped. That being said, we are also pursuing an extension of the types of P2P loans available for the IF ISA wrapper - as Receivables aren't currently included, and this excludes 20-30% of the market (LendInvest, MarketInvoice et al). We will keep you updated with progress, but expect progress to be slow. Unfortunately.
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Post by stevefindlay on Jun 26, 2016 10:06:45 GMT
BondMason Platform StatisticsA few forum members have asked for additional information with respect to our investment performance and history. We've now created a statistics page which provides an overview.
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pauls
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Post by pauls on Jun 28, 2016 11:44:38 GMT
"Although the chart implies 4% is unsecured, we feel the true exposure is closer to 25%-30% of loans being unsecured, which is in line with our investment philosophy."
A fairly high ratio of unsecured loans but only a 7-8% return. Doesn't feel correctly balanced to me.
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Post by stevefindlay on Jun 28, 2016 21:38:55 GMT
"Although the chart implies 4% is unsecured, we feel the true exposure is closer to 25%-30% of loans being unsecured, which is in line with our investment philosophy." A fairly high ratio of unsecured loans but only a 7-8% return. Doesn't feel correctly balanced to me. pauls This really hangs on the definition of "unsecured", and an appraisal of the underlying risk in each case. We don't do unsecured consumer lending. And every unsecured loan (per our definition) is closely reviewed prior to an investment being made. And in most cases (4 out 5) an investment isn't made. Hopefully this is reflected in our default (and recovery) rates - i.e. 2 defaults out of 650+ loans; and less than 0.03% still in recovery.
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Post by eascogo on Jul 7, 2016 12:34:19 GMT
I am curious to hear if BM can avoid the low initial returns caused by drag -- the result of spreading investments across as many as 50+ platforms over the first month. This could benefit all investors, but particularly those who are regular savers. Could new money not be placed straight away into one or several interest-bearing containers to be gradually spread across platforms? I note that actual returns in the first month can be as low as 2-3% though this may well be taken into account in their advertised overall return of 7-8% pa. A number of P2P platforms offer higher returns but require attention with placing and then monitoring investments over time -- not everyone has the time, inclination or confidence to do this. In addition the need to diversify means that DIY investors will end up having money scattered across many platforms. If the investor dies the executor is left with the burden of tracing and recovering monies. In this perspective, having investments taken care of within one single platform can be a big relief. This issue is discussed on this forum and elsewhere: www.p2p-banking.com/uncategorized-in-the-case-of-death/p2pindependentforum.com/thread/2079/happens-when-die
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fp
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Post by fp on Jul 11, 2016 11:15:08 GMT
At first glance, this doesn't look like a bad product for those who have either limited time or experience.
I'll be giving this a try with the intention of drip feeding a bit in each week, if it is as good as it looks i'll likely reduce my exposure on FC as this would be less time consuming for similar returns (currently 8.4% on a spread of A+, A and B loans)
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Post by Financial Thing on Jul 11, 2016 15:52:54 GMT
Just posting honest results here
After almost 2 weeks, got less than 10% of my initial deposit allocated into loans in first few days, nothing further allocated in a week. Seems like the demand is much higher than the supply. Disappointing so far.
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fp
Posts: 1,008
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Post by fp on Jul 11, 2016 17:38:24 GMT
Just posting honest results here After almost 2 weeks, got less than 10% of my initial deposit allocated into loans in first few days, nothing further allocated in a week. Seems like the demand is much higher than the supply. Disappointing so far. Dare I ask, how much you invested?
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Post by brianac on Jul 11, 2016 18:08:06 GMT
Just posting honest results here After almost 2 weeks, got less than 10% of my initial deposit allocated into loans in first few days, nothing further allocated in a week. Seems like the demand is much higher than the supply. Disappointing so far. Ditto, just to add insult to injury, I've made 17p, and I'm due to pay 11p in fees, a week ago it was even worse, fees exactly matched returns (can't remember exact numbers but it was pennies obviously) Brian
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fp
Posts: 1,008
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Post by fp on Jul 11, 2016 18:26:24 GMT
My £1000 has just shown on the account in the past hour so I will see how it fares.
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Post by brianac on Jul 11, 2016 18:31:50 GMT
My £1000 has just shown on the account in the past hour so I will see how it fares. Good luck - (but if it fares better than mine I'm gonna' complain! :-) Brian
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