gurberly
Member of DD Central
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Post by gurberly on Oct 12, 2016 19:06:05 GMT
Be Jezus what a c*** graph. /////////very open to misinterpretation. Put lending demand against loan allocation at the height of INPL gaming season is I feel, absolute b*******. It does not represent the argument that is being putting forth. Typical PR speak. "For the benefit of all our customers" <insert service reduction/increase in cost here> .
There is a wall off money hitting p2p (and high yielding equities) chasing a return.
A fear has always been whether p2p businesses would lower risk profiles and rates charged to borrowers in the chase to satisfy lender demand. I feel that SS has been reducing that risk profile already, introducing riskier borrowers, and seeing the resultant demand. This is now the tail wagging the dog. Am I looking at the first step down the slippery slope?
p2p business cannot just sit on the fence collecting fees without providing a service to lenders, and that includes providing some valid credit risk assessment of borrowers. Something that I think has been lacking on SS ever since the "grave yard" loan.
I will look at future SS pipe line loans with great interest, and well... decide whether to lend as and when.
George
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oldgrumpy
Member of DD Central
Posts: 5,087
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Post by oldgrumpy on Oct 12, 2016 19:13:48 GMT
Whoa George - you're in fer it now. Two fer a pair, uh? Naughty step - if you're lucky. Give yer ten mins exposure tops before the vigilantes zap yer!  Oh, 20 mins? They must be round the pub. Weeeeeeeeeeeeeeee!!! 24 minutes - not too bad  Now, try again and say what you really think.  <behave Grumps> |
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sam i am
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Post by sam i am on Oct 12, 2016 19:32:14 GMT
Be Jezus what a c*** graph. /////////very open to misinterpretation. Put lending demand against loan allocation at the height of INPL gaming season is I feel, absolute b*******. It does not represent the argument that is being putting forth. Typical PR speak. "For the benefit of all our customers" <insert service reduction/increase in cost here> . There is a wall off money hitting p2p (and high yielding equities) chasing a return. A fear has always been whether p2p businesses would lower risk profiles and rates charged to borrowers in the chase to satisfy lender demand. I feel that SS has been reducing that risk profile already, introducing riskier borrowers, and seeing the resultant demand. This is now the tail wagging the dog. Am I looking at the first step down the slippery slope? p2p business cannot just sit on the fence collecting fees without providing a service to lenders, and that includes providing some valid credit risk assessment of borrowers. Something that I think has been lacking on SS ever since the "grave yard" loan. I will look at future SS pipe line loans with great interest, and well... decide whether to lend as and when. George Hey George, I think you should carefully consider the language you are using. The graph was way worse than that
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nick
Member of DD Central
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Post by nick on Oct 12, 2016 19:47:54 GMT
It has always been a trade-off between rates and the maturity of platform. Recently I have been increasing my investment on FS given the higher rates, availability and cashback and bonuses on offer, as well as reducing my investment concentration at SS. The drawback is the platform is less established (platform risk) and more variable loan quality and less liquid SM, which is typical of newer platforms. Time to look at Collateral and others.............
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dan83
Posts: 243
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Post by dan83 on Oct 12, 2016 21:19:13 GMT
I've already stopped putting money into SS, looks like collateral will slowly take all my SS money aswell.
After the banks cutting interest rates I'm looking for a new home for that money aswell.
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ben
Posts: 2,020
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Post by ben on Oct 12, 2016 21:32:22 GMT
I have no issue with investing with lower rates, however I would expect better offerings then we currently have. Or even different tranches with different rates like LI offer and MT have recently done on a loan.
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ablender
Member of DD Central
Posts: 2,204
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Post by ablender on Oct 12, 2016 22:01:38 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. I was not planning to put money in any of them to tell you the truth, but have not considered if I would be tempted by a higher rate. Lower rates, . . . I am not sure. Other platforms offer other things combined with lower rates that enhances the offers of their loans.
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bob76
Posts: 103
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Post by bob76 on Oct 13, 2016 3:15:33 GMT
Down the AC slippery slope to not worth lending rates They don't seem to have much available to buy, including on the second market, so you may not think the AC loans are worth buying at the current rates , but lots of people think they are...
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MarkT
Member of DD Central
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Post by MarkT on Oct 13, 2016 6:54:48 GMT
This is really going to make life more complicated for simple souls like me.
Exactly how do I assess what rate of interest a particular loan is "worth"?
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
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Post by stub8535 on Oct 13, 2016 7:08:59 GMT
It will be interesting to see what happens to rates over all the platforms when the IFISA is introduced in spring 17, according to yesterday's conference news, and brings in even more supply of money.
I also wonder what ss are doung about charges and interest rates for current borrowers looking to extend their loans for 90 days plus? I might just call a couple up and see.
We have seen reductions across the sites over time and interest rate reductions and brexit have been blamed. Fc came down .3 on all loans some time ago. Ratesetter and zopa went first by changing how they offered investors access to loans from self service to supermarket queue.
Time will tell I think.
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Post by robberbaron on Oct 13, 2016 7:37:35 GMT
Given that SS said not too long ago that they were lowering risk yet we still see 70% LTV I doubt we'll see better quality just lower rates. But that's just supply and demand. The Brexiters have made our bed now we must lie in it.
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dan83
Posts: 243
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Post by dan83 on Oct 13, 2016 7:47:07 GMT
I'm fed up of hearing all this brexit horse s***! How do you know thing would of been different if we voted remain? You don't know, nobody knows so pipe down with your brexit this brexit that c***. If you don't like the idea of leaving Europe, your more then welcome to move over there when we are finally out, I certainly won't try and stop anyone, it will give my ears a brake from all the whining.
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SteveT
Member of DD Central
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Post by SteveT on Oct 13, 2016 7:50:00 GMT
This is really going to make life more complicated for simple souls like me. Exactly how do I assess what rate of interest a particular loan is "worth"? How do you do it now? There's no way that every loan to date on SS can be "worth" exactly 12%. A few are a bargain at that rate, others ought to be priced rather higher. By starting to flex rates to the risk (assuming that a competitive bridging loan market manages to deliver some correlation between price and risk), arguably it should make your life simpler rather than more complicated.
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ablender
Member of DD Central
Posts: 2,204
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Post by ablender on Oct 13, 2016 7:52:23 GMT
I'm fed up of hearing all this brexit horse s***! How do you know thing would of been different if we voted remain? You don't know, nobody knows so pipe down with your brexit this brexit that c***. If you don't like the idea of leaving Europe, your more then welcome to move over there when we are finally out, I certainly won't try and stop anyone, it will give my ears a brake from all the whining. If you want to keep your eyes closed, be my guest.
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Post by robberbaron on Oct 13, 2016 7:54:04 GMT
I'm fed up of hearing all this brexit horse s***! How do you know thing would of been different if we voted remain? You don't know, nobody knows so pipe down with your brexit this brexit that c***. If you don't like the idea of leaving Europe, your more then welcome to move over there when we are finally out, I certainly won't try and stop anyone, it will give my ears a brake from all the whining. Are you saying the BoE lowering rates and the yield curve following suit got nothing to do with Brexit? Personally I'm fed up of the economically illiterates trying to exonerate Brexit from lower rates or the crash in the pound.
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