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Post by dodgeydave on Oct 13, 2016 7:56:00 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. I could not agree more. Every little thing that goes wrong is blamed on brexit. The vote was cast , life goes on get over it. What will be will be.
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dovap
Member of DD Central
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Post by dovap on Oct 13, 2016 8:12:08 GMT
tedious bremoaners meh
as if the great Marmite crisis wasn't enough
SS skimming more must be brexit
Zzzzzzzzzzzz
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Post by robberbaron on Oct 13, 2016 8:51:50 GMT
tedious bremoaners meh as if the great Marmite crisis wasn't enough SS skimming more must be brexit Zzzzzzzzzzzz Guess you haven't noticed rates going down accross the board? Right go back to sleep that will make for an informed voter...
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niceguy37
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Post by niceguy37 on Oct 13, 2016 9:15:38 GMT
A fixed interest was never going to be flexible enough to last indefinitely, so eventually SS were going to have to abandon their gold standard. So I think the change is eminently reasonable.
Initially, though, the set 12% rate has served us well, in getting SS established and up to speed, to where the platform risk is less of an issue. It has also enabled a pretty fluid zero-cost secondary market that enables one to tweak their portfolio if desired.
It does mean that SS has some wiggle room in competing for quality loans where the 12% (plus SS fees) were pricing them out of the market.
Obviously we'll been watching closely to see whether they use this new arrangement to take a bigger slice of the pie for themselves, or to make a bigger pie for all of us, or a bit of both. But as SS have just said, the p2p field is getting increasingly competitive, so they can't skim too much cream off the lenders without endangering their long-term success. Perhaps publishing their charges and fees might satisfy lenders, or perhaps SS consider this commercially sensitive.
I wonder if this will change the lender profile somewhat, if lenders now feel the need to be knowledgeable so as to compare different quality loans, rather than just considering them a commodity.
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Post by meledor on Oct 13, 2016 9:39:31 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.
BoE lowering rates was part of Project Fear. A fall in the exchange rate requires a increase in interest rates rather than the reduction we got. As for the yield curve 'following suit' have you not seen the sharp increase in 10 year rates over the last couple of months? Have you seen the growth in M4 money supply recently? It's been steadily growing faster since May and is running at 5.4% p.a. Mark Carney is playing games but I do not think this particular game is sustainable for much longer.
But whatever your view of the economics/politics, SS has been very successful over the years but its pipeline has been quite sparse over the last few weeks. If it is going to continue to grow then it will need to offer a wider range of deals hopefully with more of the bigger deals which will it can only do with lower rates.
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dan83
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Post by dan83 on Oct 13, 2016 9:39:56 GMT
tedious bremoaners meh as if the great Marmite crisis wasn't enough SS skimming more must be brexit Zzzzzzzzzzzz Guess you haven't noticed rates going down accross the board? Right go back to sleep that will make for an informed voter... Are you more worried about the amount of interest your money won't earn or brexit? You won't loose money when interest rates drop, you can't loose what you don't have, you will just earn less.
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Post by meledor on Oct 13, 2016 10:48:24 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. I have an issue in that we have a platform that tells us they are very profitable and have no apparent problem in sourcing loans which are filled within minutes of launching. Who then tell us they will need to reduce lenders rates to entice new business. There is no mention of savingstream reducing the interest or fees they receive from loans. There are a number of platforms out there that are still paying 12% on PBL's and DVL's and I will continue to move my cash in their direction. This is just a way of savingstream increasing their bottom line. Your comments 'have no apparent problem in sourcing loans' and 'There is no mention of savingstream reducing the interest or fees they receive from loans' do not sit well with the email I received - perhaps you received something different?
To quote the email:
'This will allow us to offer lower cost finance to borrowers, which should feedback to a higher volume of even higher quality loan flow.
During September alone there was an opportunity to lend at least another £25m but because our funds were too expensive we did not win the business.'
So their funds are too expensive to source all the business they would like to do. They want to reduce interest rates they receive from loans and by doing this that will increase the volume of 'even higher quality loans'.
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ben
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Post by ben on Oct 13, 2016 10:50:22 GMT
They never actaully said they were reducing there 12% offerings just that they were looking at other rates. At the moment SS has far more investors then they can find loans for. So makes sense to offer different rates for people that are happy to invest in lower risk loans. I am sure there are plenty of the big hitters on SS that would be hapy to lend at rates 8/10% as well, providing the loans are good.
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Post by dodgeydave on Oct 13, 2016 10:57:58 GMT
They never actaully said they were reducing there 12% offerings just that they were looking at other rates. At the moment SS has far more investors then they can find loans for. So makes sense to offer different rates for people that are happy to invest in lower risk loans. I am sure there are plenty of the big hitters on SS that would be hapy to lend at rates 8/10% as well, providing the loans are good.
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mikes1531
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Post by mikes1531 on Oct 13, 2016 11:04:08 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... : Have you been watching the AC SM recently? At the moment there are parts totalling about £700k from 17 loans for sale, and the situation has been like that for at least a few days now. It looks like someone -- could be AC's QAA/30DAA or underwriters or investors -- decided to sell a big chunk of loans and has discovered/proven that there really aren't a lot of AC investors thinking those parts are worth buying.
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SteveT
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Post by SteveT on Oct 13, 2016 11:06:23 GMT
This is all one big con to make SS more profit. In that case, I guess you'll be taking your money elsewhere. That will show them. How dare they offer lenders only 10% or 11% interest?!
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dan83
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Post by dan83 on Oct 13, 2016 11:19:59 GMT
Will the 4 loans in the pipeline go live with a lower rate? If so why wait until Monday to tell us the new rate? I've not checked but I'm going to guess the pipeline loans still say 12%. How do I tag savingstream for an answer?
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mikes1531
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Post by mikes1531 on Oct 13, 2016 11:20:30 GMT
There is no mention of savingstream reducing the interest or fees they receive from loans. ... This is just a way of savingstream increasing their bottom line. To quote the email:
'This will allow us to offer lower cost finance to borrowers, which should feedback to a higher volume of even higher quality loan flow.
During September alone there was an opportunity to lend at least another £25m but because our funds were too expensive we did not win the business.'
So their funds are too expensive to source all the business they would like to do. They want to reduce interest rates they receive from loans and by doing this that will increase the volume of 'even higher quality loans'. : I think Jaydee's point was that SS's statement can be interpreted as meaning that they wanted to reduce the interest borrowers pay (in total) rather than say they wanted to reduce the interest or fees that borrowers pay to them (SS). If SS don't shave their own income from borrowers at the same time then their share of the money received from borrowers (their margin) goes up and the share we lenders/investors get goes down. We'll have to wait and see whether we really get 'higher quality loans'. That SS comment simply could be spin intended to appeal to those who believe you always get what you pay for -- so lower interest rates must mean higher quality loans.
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oldgrumpy
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Post by oldgrumpy on Oct 13, 2016 11:21:18 GMT
I invest in loans on several platforms with interest rates between 9% and 15% ( I also have some at 8% on a temporary/holding basis). These are all " secured" loans (yes, some securities available look very suspect as do some borrowers and many valuations are clearly inflated so that the borrower can get close to 100% of what they actually want). So, I compare all this with FC which I have now 90% FC-exited during the last six months. There, to get 11%-13% (after fees) I have to resort to (even in their opinion) C and D risk unsecured loans. FC's A and B loans pay 8.5%-9.6% (after fees) UNSECURED. AC's "safer" secured loans pay that, so maybe they are not so shabby as some people think. I no longer invest on the unsecured platforms. Borrowers' "personal guarantees" are too often worthless rhetoric to ensure they get the money. Elsewhere on the forum someone refers to the (top tier?  ) legal industry specifically there to facilitate defaulters' avoidance in actually repaying loans via their own PGs. At least with secured loans there is something to take back from the borrower so that is a start to recovery proceedings. The fact that SS may offer loans at even 10% will not deter me from looking, and maybe investing - but they will have to be good. SS might be quite disappointed that I steer well clear of much of what they offer currently but they are aware of their many issues (not just the loan quality), discussed at length on their forum board here. Unsecured loans at similar rates .... I don't know how they compete. Coffee!! |
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alanp
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Post by alanp on Oct 13, 2016 11:21:25 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. I have an issue in that we have a platform that tells us they are very profitable and have no apparent problem in sourcing loans which are filled within minutes of launching. Who then tell us they will need to reduce lenders rates to entice new business. There is no mention of savingstream reducing the interest or fees they receive from loans. There are a number of platforms out there that are still paying 12% on PBL's and DVL's and I will continue to move my cash in their direction. This is just a way of savingstream increasing their bottom line. SS are a commercial organisation there objective is to maximise their profits at the end of the day. They will attempt to do this by managing the relationships between their costs (interest to us), their revenue (interest from borrowers) and the turnover (volume of deals they want or need to do) - the same as any other business from your local handyman to Tesco / Unilever. The terms they offer borrowers are not really our business are they? If, to date, they have been lending at 12.5% and borrowing of us at 12% or lending at 99% and borrowing of us at 12% what difference does it make to us (except a total lack of deals in the last example  )? If they now borrow at 10/11% and continue to lend at their old rate they won't increase their turnover but would increase their profit (assuming the number of deals remains the same). If they reduce rates to borrowers at the same time as reducing rates to us they will maintain the same profit margin but will probably increase turnover and thus real ££s profit. If we, as the consumer, don't want to use this supplier no one is forcing us to.
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) legal industry specifically there to facilitate defaulters' avoidance in actually repaying loans via their own PGs. At least with secured loans there is something to take back from the borrower so that is a start to recovery proceedings.
)?