elliotn
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Post by elliotn on Dec 13, 2016 14:46:28 GMT
I don't think there's anything wrong with a bit of sifting personally if you don't mind getting your hands dirty.
If someone has been known to peddle poo and you can dig it out, why not avoid holding it.
If excavation of gravel pits or ancient maritime monuments fail the smell test, then wake up and smell the English sparkling wine.
If footballers are stuck in the mire, holiday parks too leisurely and, at some point, too many students stink to high heaven then they might best be side-stepped.
Whilst we may never know where it will land after hitting the fan, you might at the least prefer to avoid stepping in the biggest bits.
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Post by Deleted on Dec 13, 2016 15:21:54 GMT
So who took some of the chocolately poo (up to you if it's more chocolate or pooish) that is the football stadium?
I took a little in the name of diversification and doing my bit for the not so beautiful game!
Just a little bit mind ....
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elliotn
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Post by elliotn on Dec 13, 2016 16:24:21 GMT
Was tempted by a nibble of tranche 1 on SM which looked bit more liquid.
So far side-stepped if not yet fully got out the SS barge pole.
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Post by Deleted on Dec 13, 2016 16:27:04 GMT
Was tempted by a nibble of tranche 1 on SM which looked bit more liquid. So far side-stepped if not yet fully got out the SS barge pole. SS barge pole?
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n
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Yet another Nick
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Post by n on Dec 13, 2016 16:48:44 GMT
I think the SS barge pole is fairly long, but pales into insignificance compared with the length and girth of the Rebs one!
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Post by Deleted on Dec 13, 2016 17:00:29 GMT
I think the SS barge pole is fairly long, but pales into insignificance compared with the length and girth of the Rebs one! I'm equally invested in SS and MT. No question SS has its faults but being able to pre-fund loans at my leisure rather than having to rearrange my life for a 4pm sell off suits me well. Also on MT many of my loans are with the same people so I feel better diversified on SS. Not convinced to pick up my SS barge pole yet!
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stokeloans
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Post by stokeloans on Dec 13, 2016 17:12:08 GMT
Various emporia purvey varying quantities of turd and chocolate and from a distance the different products look very similar. Some establishments allow you to get up close and inspect their wares. If you want to purchase large quantities of chocolate and you believe that you know poo when you see it, you may wish to choose one of these platforms, however, this may mean that you spend a significant amount of time sifting excrement. If you can't tell which is chocolate and which isn't then you may wish to select an outlet that has a history for selling mostly confectionery and a policy for giving you your money back if you select a cow pat, alternatively you can go to a market that allows you to resell your purchases before the smell becomes too obvious. Unfortunately, of course, the past is no guarantee of the future and even good quality chocolate may be contaminated when purchased from a source that also supplies doo doo. Seeing as you can turn water into wine maybe you can also turn sh1t into chocolate 
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am
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Post by am on Dec 13, 2016 17:28:16 GMT
Also on MT many of my loans are with the same people so I feel better diversified on SS. My biggest (or second biggest) borrower on MT is also my biggest and bigger borrower on SS.
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agent69
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Post by agent69 on Dec 13, 2016 17:37:03 GMT
If you cherry pick dog turds you will still have dog turds, but if you are successful maybe a better class of turd. I thought that if you found yourself in possession of a dog turd then you disposed of it as soon as possible in a sociably responsible way.
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Post by Deleted on Dec 13, 2016 17:38:37 GMT
Also on MT many of my loans are with the same people so I feel better diversified on SS. My biggest (or second biggest) borrower on MT is also my biggest and bigger borrower on SS. Oh .... I hadn't picked up on any overlaps!
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agent69
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Post by agent69 on Dec 13, 2016 17:39:22 GMT
Anyone who expects to get 12% without any losses is very optimistic. IMO the sensible strategy is widespread diversification and hope that the interest on loans that perform will compensate for any losses. Hoping to avoid losses by DD and cherry picking is tantamount to gambling - and just like gambling some people will make it work and will then think their success is due to their skill and not to luck. Speaking as a supporter of a team which is below the borrower in the league, I hope this loan goes t*ts up and the borrower goes bust.
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am
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Post by am on Dec 13, 2016 17:41:46 GMT
My biggest (or second biggest) borrower on MT is also my biggest and bigger borrower on SS. Oh .... I hadn't picked up on any overlaps! If I have understood correctly, the Bradford (and stadium) loans on MT have the same ultimate ownership as the Huddersfield and Cardiff loans on SS. Some others may have escaped my recollection.
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Post by Deleted on Dec 13, 2016 17:54:26 GMT
And therein lies one of the drawbacks of blind 'diversification' with no due diligence
Many of the loans are from 'related' borrowers. Stress to one could easily mean stress for many. It is often not clear which is which without digging deeper.
So blindly allocating equal amounts to multiple loans can easily lead to an unexpected concentration of risk. This is not real diversification, this is the illusion of diversification.
And this is before even considering loan quality (the dog turd or not a dog turd question). The above is simply an issue of correlated risk.
Misunderstanding these correlations in so-called 'diversified' products was a key issue during the sub-prime debacle. Along with pretending that a pile of 'diversified' dog turds had somehow become a pile of gold.
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star dust
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Post by star dust on Dec 13, 2016 18:16:49 GMT
My biggest (or second biggest) borrower on MT is also my biggest and bigger borrower on SS. Oh .... I hadn't picked up on any overlaps! There's some information on linked cross platform loans here too.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Dec 13, 2016 21:59:37 GMT
If you follow the diversification strategy it should be across borrowers, platforms and loans. There is no harm in avoiding any loans that you don't fancy provided you are well diversified. It is important to identify borrowers who borrow multiple times across multiple platforms. I know of half a dozen borrowers who between them have 50 loans across several platforms totalling about £35m. Despite my best DD I find that I am over exposed to one particular borrower. Often the opportunity for DD is very time restricted - if you want to check anything you will miss out.
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