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Post by stevefindlay on Dec 1, 2016 12:06:53 GMT
Agreed with the general viewpoints on this forum. I will probably give up with Bondmason soonish. Steven has said one needs to be in I think 3-4 months to judge fully. I have been invested circa 3 months. My XIRR not including accrued interest is 3.50% and including accrued interest is 4.84%. Obviously Bondmason's website says I am making much higher at circa 9+%. Fortunately, HMRC won't agree with this headline figure and I will be paying tax on the 3.5% earned... Actually will be paying higher tax then on the 3.5% earned as I can not deduct Bondmason's fees. Current balance is circa £7000 fyi... - we would be sorry to see you go; but you've given us a few months trial, and we can't ask any more than that. Thank you. As you've seen from other posts on this forum, we've had a significant amount of new capital coming in over the last few months, well beyond our expectations, so deployment has taken some time to catch up*. We are still looking to enable our clients to target 7.0% p.a. over a full year though. Time will tell... Most of our longer-standing clients are already achieving this, so patience can be rewarding. *As mentioned elsewhere, we would much rather get 'heat' for cash drag than reducing the quality of our loan approvals. FYI - the headline figure at the top of your dashboard, or at the bottom of the home page (c.7.75%-9%) is based on the average rate of the loans in your portfolio, and the average of loans across the platform at that time respectively, and doesn't yet cater for the recent levels of cash drag (some cash drag is catered into these figures, in accordance with normal levels over the last 12 months, it is not weighted toward what we've seen over the last 2-3 months).
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oldgrumpy
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Post by oldgrumpy on Dec 1, 2016 12:32:06 GMT
....... FYI - the headline figure at the top of your dashboard, or at the bottom of the home page (c.7.75%-9%) is based on the average rate of the loans in your portfolio, and the average of loans across the platform at that time respectively, Eh? Explain please. How is the headline rate emblazoned on my dashboard got anything to do with "the average" of loans across the platform at that time? Why does my headline rate (from which I have to deduct fees) not reflect the average rate of loans in my portfolio, and nothing else?
I have often wondered why my headline rate actually drops after addition of a set of high rate loan parts (and vice versa).
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Post by khampson on Dec 1, 2016 12:41:00 GMT
stevefindlay when do you expect all accounts to be at 98%+ what time scale are we looking for this?, A time scale would be most useful so I can organise my other investments to coincide with this, I do agree that I would rather keep a tight criteria and not allowing riskier loans just to soak up uninvested cash, I think bondmason can only be a deposit and forget if we have confidence in the platform if clients are fully invested most of the time, I find myself logging in several times a day just the see if I have and new loan allocations and to see my currently univested funds, I know you target 7% but is this realistic going forward with the amount of cash drag at present, Would you consider a flexible rate to compensate for market demand? I would rather have £1000 lent out at say 6% than £1000 in an account 0%, or even another product to sweep uninvested funds into another account earning something. Thanks
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Post by sayyestocress on Dec 1, 2016 13:11:51 GMT
....... FYI - the headline figure at the top of your dashboard, or at the bottom of the home page (c.7.75%-9%) is based on the average rate of the loans in your portfolio, and the average of loans across the platform at that time respectively, Eh? Explain please. How is the headline rate emblazoned on my dashboard got anything to do with "the average" of loans across the platform at that time? Why does my headline rate (from which I have to deduct fees) not reflect the average rate of loans in my portfolio, and nothing else?
I have often wondered why my headline rate actually drops after addition of a set of high rate loan parts (and vice versa). I read it as the "across the platform" bit applies to the home page value only, not your personal dashboard.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Dec 1, 2016 13:55:29 GMT
Of course. Grumpybrain drops to <25% December-March.  I ain' 'alf a twit. |
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Post by stevefindlay on Dec 1, 2016 16:13:36 GMT
Of course. Grumpybrain drops to <25% December-March. I ain' 'alf a twit. Admittedly, I could have written that clearer, repeating and separating out here: - the headline figure at the top of your dashboard is based on the average rate of the loans in your portfolio - the figure at the bottom of the home page (c.7.75%-9%) is based and the average of loans across the platform at that time respectively Neither caters for the recent levels of cash drag. Although some cash drag is catered into these figures, in accordance with normal levels over the last 12 months, and our ongoing expectations. [thank you sayyestocress]
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Post by stevefindlay on Dec 1, 2016 16:30:58 GMT
stevefindlay when do you expect all accounts to be at 98%+ what time scale are we looking for this?, A time scale would be most useful so I can organise my other investments to coincide with this, I do agree that I would rather keep a tight criteria and not allowing riskier loans just to soak up uninvested cash, I think bondmason can only be a deposit and forget if we have confidence in the platform if clients are fully invested most of the time, I find myself logging in several times a day just the see if I have and new loan allocations and to see my currently univested funds, I know you target 7% but is this realistic going forward with the amount of cash drag at present, Would you consider a flexible rate to compensate for market demand? I would rather have £1000 lent out at say 6% than £1000 in an account 0%, or even another product to sweep uninvested funds into another account earning something. Thanks Excluding new accounts; this should be 4 weeks from depositing funds. At present it is longer than this (as we all know) but things are definitely moving in the right direction "target 7% but is this realistic going forward with the amount of cash drag at present" - We still think so. The bigger pressure right now is from a decrease in rates across the market. The cash drag is coming under control, and will be less pronounced as our monthly growth rates slows down (we grew at ~30-50% per month in 2016; we are aiming for this to be ~10-20% in 2017). "consider a flexible rate to compensate for market demand" - Interesting idea; but, for now, we would rather (i) keep our product options simple and (ii) focus on getting everyone invested in good quality opportunities as quickly as possible.
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Greenwood2
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Post by Greenwood2 on Dec 1, 2016 20:30:56 GMT
Pretty disappointing rate of 4.1% this month rather worse than ratesetters at 5.87 although that is a bit inflated by the fact I am withdrawing funds.
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oldgrumpy
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Post by oldgrumpy on Dec 1, 2016 21:27:42 GMT
I do an approximation like this. How close is the result likely to be to reality? ( Not my real figures) Today (for instance) £8000 total invested and accrued interest. £7000 deployed (87.5%) £1000 idle (12.5%) Headline rate 9%. So the rate there after fees is 9.0 x 87.5% (to allow for idle money earning zilch) minus 0.875 (BM Fee on 87.5% deployed money). All that comes to 7.7875% before losses and external fees. On that basis I estimate that since mid August even allowing for some cash drag I am actually around 7-7.1% (before losses and external fees) which is not too far away from BM's target, I suppose. It concerns me when people are experiencing 3 to 4% over a period of time - that's a lot of "cash drag". I await a total demolition of my approximations  |
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fp
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Post by fp on Dec 1, 2016 22:07:31 GMT
I do an approximation like this. How close is the result likely to be to reality? ( Not my real figures) Today (for instance) £8000 total invested and accrued interest. £7000 deployed (87.5%) £1000 idle (12.5%) Headline rate 9%. So the rate there after fees is 9.0 x 87.5% (to allow for idle money earning zilch) minus 0.875 (BM Fee on 87.5% deployed money). All that comes to 7.7875% before losses and external fees. On that basis I estimate that since mid August even allowing for some cash drag I am actually around 7-7.1% (before losses and external fees) which is not too far away from BM's target, I suppose. It concerns me when people are experiencing 3 to 4% over a period of time - that's a lot of "cash drag". I await a total demolition of my approximations I have two accounts, and both are similar to yours OG, i've just done a quick calc based on 42 days (last time i recorded my total give or take a day) and i'm on around 7.5% after fees.
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Post by stevefindlay on Dec 2, 2016 15:58:24 GMT
Pretty disappointing rate of 4.1% this month rather worse than ratesetters at 5.87 although that is a bit inflated by the fact I am withdrawing funds. @greenwood2 - is that excluding accrued interest? Unless you are 40-60% allocated (which may be possible depending on the date of your investment etc) then there's no other way you could be at 4.1% p.a. Our average loan rates aren't that low and we've had no crystallised losses in the month.
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caesium
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Post by caesium on Dec 5, 2016 12:50:10 GMT
Wow. I don't know if anything significant happened this morning but I've shot up from 40% invested to 91% as of this morning.
I deposited an extra £1000 last week, I wonder if that gave it a shove somehow? I note that a lot of my investments this morning are £50 whereas previously they were 10/20. Maybe adding the extra opened me up to £50 investment possibilities which are more plentiful than the £20 ones?
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Post by khampson on Dec 5, 2016 12:57:40 GMT
Wow. I don't know if anything significant happened this morning but I've shot up from 40% invested to 91% as of this morning. I deposited an extra £1000 last week, I wonder if that gave it a shove somehow? I note that a lot of my investments this morning are £50 whereas previously they were 10/20. Maybe adding the extra opened me up to £50 investment possibilities which are more plentiful than the £20 ones? There has been a steady flow or draw down loans today, I have 3 new loans added to my portfolio, hopefully BM is catching up with demand, I'm just over 90% now. Reassuring news for me this is 
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Post by stevefindlay on Dec 5, 2016 13:53:30 GMT
Pleased to report things continuing to move in right direction - we are continuing to work very hard to bring the investment level up, and keep the quality the same or better. On an individual basis this may look stop-start on your accounts, but we can continue to see things moving nicely across the board.
As of this morning we are at an average 89% across the platform (excluding 2 clients with very large balances).
Getting there...
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guff
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Post by guff on Dec 5, 2016 14:17:26 GMT
Both accounts above 95% now - just hope they stay there.
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