grahamg
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Post by grahamg on Oct 12, 2016 17:07:00 GMT
It will be interesting to see if this creates a downward trend in rates on other platforms. Hope not  I think that is already in progress and this is part of it. Down the AC slippery slope to not worth lending rates
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ablender
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Post by ablender on Oct 12, 2016 17:14:17 GMT
Will this mean that there will be someone who will take a definite first cut in defaults like BroadOak on MT?
Will we be seeing loans with real LTV as low as 50% or less?
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mikeh
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Post by mikeh on Oct 12, 2016 17:14:28 GMT
If they mean what they say and are just introducing lower rates for lower risks then this is a lot better than I feared. We will have to wait and see how it develops.
This is pretty much what MT did some months ago.
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Post by Financial Thing on Oct 12, 2016 17:16:10 GMT
I surely hope that SS will be reducing borrower rates and if so, this is simple demand and supply. SS is obviously losing borrowers to other platforms offering lower rates.
Better for SS to offer loans at lower rates than to offer no loans at all.
Now if borrowers rates remain the same while lender rates are cut, there will be more than a few irritated lenders / defectors.
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Post by Deleted on Oct 12, 2016 17:18:29 GMT
The email does say this
By investing in a wider spread of high quality loans and being able to keep their money at work more of the time, investors will find it far easier to build a sensible diversified portfolio of loans over time and probably for a similar net return as before.
The first batch of <12% loans will be very interesting
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madpierre
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Post by madpierre on Oct 12, 2016 17:22:25 GMT
I am very concerned about this new development. Until recently the general consensus was that Saving Stream only 'accepted' good loans, but now they appear to be chasing them. I fear both quality and rates will suffer and so shall we.
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ablender
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Post by ablender on Oct 12, 2016 17:25:43 GMT
They mentioned October 17th on all new pipeline loans. I suppose the loans that are already in the pipeline will remain at 12% as are currently shown.
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dovap
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Post by dovap on Oct 12, 2016 17:32:51 GMT
you'd think they'd be upping the rate given some of the 'quality' they've been putting up
ah well improved 'quality' is something to look forward to
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sam i am
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Post by sam i am on Oct 12, 2016 18:12:57 GMT
Interesting that savingstream base this decision on the demand for loans. The only way they could know the demand is from the level of pre-funding. But I have consistently over-requested allocation (for one loan it was 10x what I wanted). I'm sure I'm not the only one. I think they may find that the correct level of demand is not quite as high as they think. Having said that, if this does result in some demonstrably lower risk loans being made available at 10% or 11%, then all to the good. But if lower risk is to be demonstrated then SS will need to work harder at getting believable valuations and undertaking better borrower DD. I still have a large proportion of my P2P investment with SS but a lot of my new money is going to MT. On MT I do invest in some sub-12% loans. But with these loans I do have confidence that the risk is genuinely lower. SS will need to do the same. |
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Post by karloshi on Oct 12, 2016 18:13:10 GMT
This my also make the secondary market more interesting.
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Post by amber on Oct 12, 2016 18:17:35 GMT
Reducing rates was always going to happen given that demand far outstrips demand as the platform has grown more popular. It will be interesting to see how sensitive investor demand is for the lower rate properties - I suspect it will very sensitive, but ultimately the market will support lower rates given the increasing popularity of the platform which I attribute to both high rates as well as the simplicity of the platform and liquid SM.
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e7
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Post by e7 on Oct 12, 2016 18:19:37 GMT
They mentioned October 17th on all new pipeline loans. I suppose the loans that are already in the pipeline will remain at 12% as are currently shown. and even at 12% I wouldn't touch 2 of them. Just curious, which 2,? I had the same thoughts and just wondered if it's the same 2
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averageguy
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Post by averageguy on Oct 12, 2016 18:30:08 GMT
If they mean what they say and are just introducing lower rates for lower risks then this is a lot better than I feared. We will have to wait and see how it develops. This is pretty much what MT did some months ago. Wait and see is the most sensible approach...while some stamp there feet and speculate 
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Post by holmesy999 on Oct 12, 2016 18:52:37 GMT
I'm wondering if it is too much to ask what the differential rate is - what rate we the punters are receiving vs the rate the client is getting?  |
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Post by savingstream on Oct 12, 2016 18:55:28 GMT
Just an excuse for them to lower rates so they can compete and get in more business and claim it is a 'better' loan - knew it wouldn't last !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! No mention of them cutting the rates they charge, just the lenders! Any cuts in interest will of course be passed onto the borrowers hence we will be able to attract very good borrowers and very good assets. The bridging market is becoming quite competitive and the provision of loans available that can absorb the costs required with a minimum of 12% plus our fees put us at the more expensive end of the market.
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