oldgrumpy
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Post by oldgrumpy on Aug 7, 2016 16:55:24 GMT
Although I do see loans that fall within my XX limit as riskier, I do believe that a diverse portfolio is just as important. In order of importance... 1. DD 2. LTV (90day if available) 3. Days Remaining 4. Recent Updates 5. Gut feeling I find that I am no longer able to consider "Recent Updates" as they are are best very unreliable. Also, with most lending of this type, it is what you "don't know" that represents the greatest risk. SS updates are too often vague; they need more detail. SS should place a date on each update, not "a month ago" "a week ago" "three months ago" etc. One loan I have been following states, One week ago ... ( is that now 7days, 9days 11 days??? It's been there for about a week) "Met with the borrower last week" (so exactly when was that meeting? A fortnight ago? More?). I suspect that update is out of date and have questioned it on another thread.
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Post by dualinvestor on Aug 7, 2016 16:57:54 GMT
I think it's fairly well established that the PF is not much more than a nominal figure providing a comfort blanket, and it's not actually a separate figure in any way. The comfort blanket just became very ragged. There has been volumous postings both on threads with PF in the title and on other ones like, how risky is SS? About the provision fund. As adrianc says there is a consensus amongst many that it is a comfort blanket/marketing tool/irrelevence or whatever description other than a "guarantee you will get your money back." Given the nature of the SS loan book 2% of the total advanced will simply not be sufficient to cover multiple defaults and if SS is to maintain its "not a penny lost" tag line then it is likely that it will be because Lendy Ltd makes up any shortfall. In the absence of that in the future it is probable that there will be some bad debt, after all one would have to be a little naive to think that 12% returns comes without ANY risk.
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goopy
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Post by goopy on Aug 7, 2016 17:00:23 GMT
Example (fictitious). Garden Centre. I want a six month loan. I sell at 5 months 30 days (or less). Lucky me. I didn't want a 13 month loan with no chance of selling my loan parts. Real example in another place. Epping. Ipswich. Didn't hold to term. Well, well. Borrower plays silly b*gg*rs. I have no waiting for my money and no (eventual) capital loss. In the meantime my cash has been earning interest elsewhere. We always have to trust that a borrower will repay, but selling before maturity dispenses with some of the risk. I cannot answer the question of why others are prepared to take the risk from me. Don't really know why the question was asked by a non-"newby". Sorry I do not think I made myself that clear, I can understand why people want to sell when a loan comes near to the end. But I think investing more then you want to hold in a loan in case you can not sell it is pretty daft, a few posters on here seem to buy what they can with the intention of selling later what happens when the market changes? and you can not sell on how much panicking has there been on this forum, only a few weeks ago when there was a few million on the secondary market and that was after one default where the provisional fund is enough to cover it.The brexit vote was the most likely cause for the slowdown in the SM. The default was a few weeks before the referendum and the SM was still fairly liquid untill the vote, also about 20m of loans going live at the same time didn't help.
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adrianc
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Post by adrianc on Aug 7, 2016 17:06:54 GMT
Given the nature of the SS loan book 2% of the total advanced will simply not be sufficient to cover multiple defaults and if SS is to maintain its "not a penny lost" tag line then it is likely that it will be because Lendy Ltd makes up any shortfall. In the absence of that in the future it is probable that there will be some bad debt, after all one would have to be a little naive to think that 12% returns comes without ANY risk. If SS are making accounting provision for "2% of Loan Book", then that's a movable feast. Let's say there's £100m of loans outstanding. So "£2m" in the PF. £5m goes south. That puts the PF at "-£3m", right...? No, because the PF is 2% of the loan book, now £95m, so now "£1.9m". SS just need to take a bigger hit than expected on their accounts ( budget - £2m, actual - £5m, whereas to date it's been budget - £2m, actual - £0). Either way, it's discretionary. It's all down to how much value they put on that "not a penny lost" tag and on the run on liquidity that would undoubtedly follow them saying "Nope, not covering that one".
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Post by dualinvestor on Aug 7, 2016 17:12:42 GMT
Exactly, that is what is meant by " it will be because Lendy Ltd makes up any shortfall"
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Jeepers
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Post by Jeepers on Aug 7, 2016 17:21:47 GMT
If you're struggling to find somewhere to put it, I have some of PBL 64 up for sale... 73 days remaining 😆
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Post by dualinvestor on Aug 7, 2016 17:24:25 GMT
If you're struggling to find somewhere to put it, I have some of PBL 64 up for sale... 73 days remaining 😆 Damn! 75 days is my limit sorry 
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Liz
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Post by Liz on Aug 7, 2016 18:28:47 GMT
If you're struggling to find somewhere to put it, I have some of PBL 64 up for sale... 73 days remaining 😆 I'm just about to buy £100k of 64.
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Jeepers
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Post by Jeepers on Aug 7, 2016 18:43:53 GMT
If you're struggling to find somewhere to put it, I have some of PBL 64 up for sale... 73 days remaining 😆 I'm just about to buy £100k of 64. Why not! Will get you over £2k of interest 😉 Only needs £15k will get me out of this one. 😀
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boble
Posts: 150
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Post by boble on Aug 7, 2016 18:55:46 GMT
If you're struggling to find somewhere to put it, I have some of PBL 64 up for sale... 73 days remaining 😆 I'm just about to buy £100k of 64. I'll keep a look out for it.
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Jeepers
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Post by Jeepers on Aug 7, 2016 19:14:27 GMT
Still waiting on that investment Liz 😉 |
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Post by GSV3MIaC on Aug 7, 2016 19:39:25 GMT
/mod hat off. I think Liz must have had a veracity transplant from a couple of our borrowers. 8> **Update .. nope, apparently she (Ajax, Alex?) were just a bit slow finding enough cash (hmm, some of our other borrowers .. ) Back to the original Q .. I don't see any point in "running away at X days", but I might sell if someone wants to buy .. in which case the excess cash will head over to some non-property site, or just sit waiting for the next decent opportunity. Depends what is around (across the whole spectrum, not just SS). I try not to buy more than I am willing to lose anyway. |
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Liz
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Post by Liz on Aug 7, 2016 20:11:47 GMT
Still waiting on that investment Liz 😉 Once my Spanish lottery wins comes through, from the African bank, then i'm buying. 
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Liz
Member of DD Central
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Post by Liz on Aug 7, 2016 23:11:23 GMT
Plenty up for sale just after midnight. I got some 93 with my 64 money  |
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sam i am
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Post by sam i am on Aug 8, 2016 3:25:04 GMT
I've got less money invested in SS than I had a month or so ago - because there were some loan parts I wanted to sell, for various reasons, and there were no other available loans I wanted to increase my stake in. A bit of that money has been invested in MT loans but at present I've got a little bit more cash than normal sitting idly in a bank deposit account earning almost no interest. However I see this as only a short term situation and it's ready for reinvestment as and when opportunities arise that I'm happy with. I'd rather keep my money safe than keep it in loans I don't like, or throw diversification caution out of the window, just for the sake of a bit of interest. If SS soon go live with new loans that look OK to me, than my investment on the SS platform will go back up again. Ditto
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