fp
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Post by fp on Oct 3, 2016 10:32:13 GMT
My allocation has dropped from nearly 100% to 78% over the last fortnight (I haven't been watching to see whether that has been a steady decline). Presumably that has been caused by a series of repayments because the total in the portfolio has dropped also). I hope the 78% does not continue for more than a few days; I was expecting to drop in a bit more cash today.  Same for me, it was on the last day of the month, invoice finance repayments are the reason apparently when I inquired with Steve on Friday
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oldgrumpy
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Post by oldgrumpy on Oct 3, 2016 10:34:24 GMT
If that's all it was, just the end of month repayments, no problem then. Thank you.  |
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Post by wickedxuk on Oct 3, 2016 13:46:20 GMT
I dropped to 92% because of repayments too. Worthy of note, for some invoice discounting loans of £20 that id held for less than a month, I didn't get paid interest because it was <1p and BM don't round up in this case.I'm still at 92% ish after about 4/5days.
On another note, I wonder why there are never any allocations over the weekend? I thought BM's system was automatic? Yet it always seems to be during working hours during the week.
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Post by wiseclerk on Oct 3, 2016 13:47:21 GMT
My account is now fully invested on day 14 (after deposit).
Most marketplaces only originate loans on weekdays. There are a few exceptions.
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Post by stevefindlay on Oct 3, 2016 16:33:16 GMT
Picking up on a few things:
(1) Repayments: we are coming off the seasonal high in Invoice Discount finance (August), so there have been lots of repayments in September and more coming through in October. These are always hard to predict, but we do our best to stay on top of new loan allocations. And please remember that repayments are generally a good thing!
(2) Investment: we've invested in c.20 loans today and are catching up on the investment back log; but we will always do this in a cautious way - we'd rather get beaten-up by clients for slow investment rates as opposed to rushing into loans that default. We hope to continue the strong investment rate over the coming days as we respond to the very strong growth in new clients and investments we've seen recently. We will also factor this into the rate of future loan investments.
(3) Timing: we (rarely) process new loans over weekends. A good portion of the system is end-to-end automated, but less so at the front end (initial loan investment decision and execution) - particularly where we are manually reviewing the loans for credit quality etc. So new loans are unlikely to hit your account over the weekend.
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littonowl
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Post by littonowl on Oct 3, 2016 18:59:46 GMT
Deposited an initial sum on Friday and was fully invested by this morning - so no cash drag here, and an impressive projected rate of 9.04% gross to boot!
Thanks to stevefindlay for all your open, honest and detailed communications on here, which gave me the confidence to invest with BM..
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Post by wickedxuk on Oct 3, 2016 19:08:09 GMT
Deposited an initial sum on Friday and was fully invested by this morning - so no cash drag here, and an impressive projected rate of 9.04% gross to boot! Thanks to stevefindlay for all your open, honest and detailed communications on here, which gave me the confidence to invest with BM.. I guess new customers get preference 😉 just kidding... it may be that you have been allocated parts others like me (or my wife) already hold. I'm sure my funds will get invested soon... even with the small amount of cash drag still getting 8.9% too. So I continue to be happy with BM
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bababill
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Post by bababill on Oct 4, 2016 2:12:31 GMT
I started with Bondmason August 1... As of today my Xirr is only 1.93%. I am not counting accrued interest because I haven't received it and I may never receive the same if the loan goes in default.
So though the headline rate today shows a current return of above 9% (before fees), after 63 days approx the actual return is not too impressive.
Anyone else finding the actual cash earned is negligible ?
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edward
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Post by edward on Oct 4, 2016 7:14:49 GMT
Really? I had over £1k awaiting investment all day with no action whatsoever. Feeling very unloved! A week later, and because of repayments the £1k uninvested has become £1.5k. And I continue to read about people getting fully invested in no time. I do not understand the inconsistencies. ps still only a 4 figure amount invested.
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Post by stevefindlay on Oct 4, 2016 20:19:45 GMT
"...I am not counting accrued interest because I haven't received it and I may never receive the same if the loan goes in default." Two quick observations on this: (1) We've invested in over 1,000 loans - 3 have gone into default, 2 with full recovery and 1 still in the process of recovery (representing less than 0.1% of total investment). (2) About one-third of loans are interest rolled up, with terms between 1 months and 12 months (3-4 months on a weighted average). For these reasons, if you're looking to conduct a cash-on-cash IRR calculation, these are more meaningful from 4 months onwards. This will also provide a more representative result for a 12 month hold period, considering the impact of the initial cash drag. The target of 7%+ p.a. is based on a 12 month hold period.
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Post by stevefindlay on Oct 4, 2016 20:29:25 GMT
Really? I had over £1k awaiting investment all day with no action whatsoever. Feeling very unloved! A week later, and because of repayments the £1k uninvested has become £1.5k. And I continue to read about people getting fully invested in no time. I do not understand the inconsistencies. ps still only a 4 figure amount invested. The current process is: (1) When a new investment is made by a client (existing or new client) it is processed through the available investments. Based on the client's concentration settings, and existing holdings, they are allocated investments. (2) Clients with capital to be deployed are then allocated loans on a rotating basis. The algorithm takes into account their percentage amount invested (this is banded, so it's not a simple case of those with lower percentages are always top of the list), and when they last received an investment. (3) Periodically, when the overall investment across the platform is 95-100% of the demand, we run an algorithm add-on that enables smaller clients (less than £5-10k) to be invested quickly. At present, we are catching up on significant investment demand, so the process, whilst fair, can be a bit lumpy. Our target is to keep everyone above 98% invested. So if you aren't there yet, then rest assured we are working hard to get you there.
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Post by eascogo on Oct 4, 2016 21:07:54 GMT
I started with Bondmason August 1... As of today my Xirr is only 1.93%. I am not counting accrued interest because I haven't received it and I may never receive the same if the loan goes in default. So though the headline rate today shows a current return of above 9% (before fees), after 63 days approx the actual return is not too impressive. Anyone else finding the actual cash earned is negligible ? You were unlucky and were hit with a lot of initial drag. The new investment algorithm is supposed to cure that. I put £1k in week 2 of July. Drag at that time was generally high (about 1 month to full investment). My return after 12 weeks is £13.19. This is equal to 5.7%pa [(£13.19/12)x52=£57.15] but this should pull nearer to the headline rate (7.84% after fees) as time will erode the impact of initial drag. Investing at FS, SS, or MT at 12%pa would earn £27.69 in the same 12-week period but a sacrifice for lower risk, diversification, and monitoring is in order.
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jonah
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Post by jonah on Oct 5, 2016 8:26:38 GMT
eascogo I would agree with greater diversity and lower monitoring... can you indicate how you think BM gets 'lower risk'?
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Post by eascogo on Oct 5, 2016 23:03:41 GMT
eascogo I would agree with greater diversity and lower monitoring... can you indicate how you think BM gets 'lower risk'? Hi jonah: To my mind the lower risk relates to the more consistent fractional allocation (greater diversity). If self-investing you would be unlikely to spread your money into between 50 and 100 separate units in a short space of time. Most investors would regard it as not worth the effort. Consider an investment of 5k or 10k. Would you really split your investment into 50 or 100 roughly equal tranches? Probably not. Therefore your risk of default is multiplied several times over. I've only dipped a little toe with BM because of the extra few percent I hope to get on investing elsewhere. Whether this pays off time will tell. As for platform risk, well blanket protection doesn't exist in the real world.
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Greenwood2
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Post by Greenwood2 on Oct 6, 2016 7:40:09 GMT
There is also a layer of DD provided by BM, if you have confidence in their ability to pick good platforms and good loans. Time will tell.
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