mikes1531
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Post by mikes1531 on Nov 1, 2016 16:01:45 GMT
The recent decision by FS to start using Underwriters to fill some of the long-running renewal loans (and so permit the return of overdue funds to the original lenders) is already having a beneficial effect on liquidity, IMO, both in the PM and the SM. I have to wonder what it's doing to FS operating margins by taking on this additional expense... : ISTM that the effect on the FS operating margin of the decision to bring in underwriters on renewal loans will be relatively small. Instead of having to continue to pay interest to all investors in the old loan who opted not to roll their investments forward, FS are paying underwriters to supply the funds to repay those investors. So the net cost to FS is just the differential between underwriting rates and investor rates, and that shouldn't be too onerous. Furthermore, if FS wait a couple of days before calling in the underwriters and attract a few new investors to the loan, then the proportion of the loan that has to be underwritten is reduced even further. IMHO, this decision has been a very good move by FS.
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duck
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Post by duck on Nov 1, 2016 16:40:37 GMT
Agree a very good move.
Already today I've had a couple that have repaid which has increased liquidity for me, something that was woefully missing for me last month as renewals took a long time to renew.
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kermie
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Post by kermie on Nov 1, 2016 17:13:27 GMT
Indeed so. The FS deal flow and borrower diversification is by far the best of the P2P platforms I'm in, and as a result FS is now the biggest (24%) of my P2P pots.
However, I am reluctant to inject too much more money because getting it out (sales/redemptions) seems harder than other platforms. The SM does seem to have seized up a bit in recent weeks.
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r00lish67
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Post by r00lish67 on Nov 3, 2016 16:48:27 GMT
Can I just say b****ry b***cks, as I missed out by about 30 seconds on investing in 1791630962 (24% LTV in S****ry) because I was too busy reading the news to spot the email.
In an attempt to link this to the discussion, there is some value out there, it just isn't there for very long!
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Neil_P2PBlog
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Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Nov 3, 2016 16:49:50 GMT
Can I just say b****ry b***cks, as I missed out by about 30 seconds on investing in 1791630962 (24% LTV in S****ry) because I was too busy reading the news to spot the email. In an attempt to link this to the discussion, there is some value out there, it just isn't there for very long! I saw it go live and deposited money straight away.. deposit finally processed about 2 minutes after 100% funded!
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r00lish67
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Post by r00lish67 on Nov 3, 2016 17:28:37 GMT
Can I just say b****ry b***cks, as I missed out by about 30 seconds on investing in 1791630962 (24% LTV in S****ry) because I was too busy reading the news to spot the email. In an attempt to link this to the discussion, there is some value out there, it just isn't there for very long! I saw it go live and deposited money straight away.. deposit finally processed about 2 minutes after 100% funded! If you're really nice (and desperate, like me) the good people on livechat can expedite matters in circumstances such as these. I was assisted, but was trying to sneak in a deposit when it was already 85% full so was always likely to be doomed to scanning for rebound discount purchases on the SM to make myself feel better. Edit: I bought some artwork at a small discount. A little bit of buyer's remorse already setting in.
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bg
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Post by bg on Nov 11, 2016 20:30:22 GMT
The £1.3m Poole loan repaid today. Seems some of that cash is being recycled into the SM as I've sold over £10k's worth since then.
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r00lish67
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Post by r00lish67 on Nov 12, 2016 2:42:49 GMT
The £1.3m Poole loan repaid today. Seems some of that cash is being recycled into the SM as I've sold over £10k's worth since then. Warminster, too. Feast is rapidly turning to famine, with the secondary market certainly looking more tight than in weeks past. Good for liquidity, bad for non-tax payers bargain hunting.
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r00lish67
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Post by r00lish67 on Nov 12, 2016 9:00:41 GMT
Furthermore, 100% recovery of defaulted 6712763837 (M*** S*****t) looks on the cards with contracts having been exchanged. Well done, fundingsecure  |
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Post by clive205 on Nov 14, 2016 15:11:06 GMT
Furthermore, 100% recovery of defaulted 6712763837 (M*** S*****t) looks on the cards with contracts having been exchanged. Well done, fundingsecure Yep. That's all gone through now so well done indeed to FS.
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SteveT
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Post by SteveT on Nov 15, 2016 10:40:10 GMT
Another positive step by FS: this morning's Newcastle Development - Renewal loan (£860k @ 13% + bonuses) has been underwritten before it even goes live, so existing lenders will receive an immediate repayment (2 days early!)
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09dolphin
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Post by 09dolphin on Nov 15, 2016 11:43:47 GMT
I only have 12 loans that are overdue and all are property. Seems to me that to suggest property loans are likely to redeemed in 6 months is disingenuous. Whilst some property loans are redeemed or renewed on time it is far from the norm and investors should be advised accordingly. FS frequently (and rightly) grant extensions but new investors should be advised of this as they may expect the claims made by FS that the loans are for 6 months is accurate. I think FS should say that loans, although made for 6 months, are more likely to be repaid within 9 months so investors are aware of the true state of the market - and that interest is paid for the whole period of the loan.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Nov 15, 2016 11:54:01 GMT
Another positive step by FS: this morning's Newcastle Development - Renewal loan (£860k @ 13% + bonuses) has been underwritten before it even goes live, so existing lenders will receive an immediate repayment (2 days early!) Great News. There were a lot of lenders (inc. me) offering this loan for sale at between 1.5% and 2% discount for weeks. I needn't have worried.
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SteveT
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Post by SteveT on Nov 16, 2016 10:48:20 GMT
charliebrown . Some of the quirks of the SM as described on this thread are worth understanding. The SM can offer advantages not available elsewhere. Its use can benefit buyers/sellers under some conditions. An important feature however is liquidity and a so-so rating would probably be the majority view. I will hazard a guess that, when the next FS newsletter is published, November will be the record month for SM trading. The knock-on effect on SM liquidity of the large FS renewal loans now being underwritten has been substantial IMO. Take the Powerboat loan (5818112533) as an example: a £550k loan on its final day of SM eligibility (31 days to go), yet there's barely £3k left on the SM and the best-available discount has shrunk to just 0.8%. A week or two ago there was a sea of Powerboat parts available at discounts well over 1%. [Forgive the unfortunate unintended pun]
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mikes1531
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Post by mikes1531 on Nov 16, 2016 20:42:23 GMT
The knock-on effect on SM liquidity of the large FS renewal loans now being underwritten has been substantial IMO. This new 'policy' has, however, not been applied consistently so far. The £730k Greenwich loan now being renewed hasn't been underwritten yet. IIRC, it was no more than 25% funded when the renewal went live for funding. So 75% of the investors in the original loan want to get out, and that's about £550k worth. I am one of those investors, and I'd be happy to reinvest most of the funds that I'm waiting to be returned in other available FS loans. But I can't do anything until FS arrange the underwriting. (Or the loan is filled by new investors, though that could take a while considering how much of the loan is available at the moment.) I'd have thought that releasing over £0.5M back to investors would have a noticeable impact on the existing loan opportunities.
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