poppyland
Member of DD Central
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Post by poppyland on Nov 1, 2016 12:50:43 GMT
Does anyone know why so much of PLB140 comes onto the secondary market? I have gradually built my holding up to nearly 9K, but sometimes wonder whether I have landed myself with a lemon. PBL84 (the scottish estate) with plenty of days left to run, also seems to end up on the SM more than one would expect. Is there some insider information that explains this?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Nov 1, 2016 12:55:45 GMT
Does anyone know why so much of PLB140 comes onto the secondary market? I have gradually built my holding up to nearly 9K, but sometimes wonder whether I have landed myself with a lemon. PBL84 (the scottish estate) with plenty of days left to run, also seems to end up on the SM more than one would expect. Is there some insider information that explains this? Big loans @ 70%, so lots to trade; also, because it appears often (and is in positive territory) investors use it to temporarily place their funds, and then (when they can, after a loan repayment, interest comes in or more capital is sent) it's the first they sell because they are overexposed. The Scottish loan does have it problems; it's getting close to falling under the 100day threshold, and will probably become the next farmland (lots on the SM when it's not liquid). The VR notes that it could take a long time to sell the security (years, not months), so is not one you would want to be caught holding if it defaults.
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jamesc
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Post by jamesc on Nov 1, 2016 12:56:57 GMT
Does anyone know why so much of PLB140 comes onto the secondary market? I have gradually built my holding up to nearly 9K, but sometimes wonder whether I have landed myself with a lemon. PBL84 (the scottish estate) with plenty of days left to run, also seems to end up on the SM more than one would expect. Is there some insider information that explains this? I not sure anything really wrong with it just a fairly large loan and the security is a bit messy and with a 70 LTV there are better loans plus it came when the SM was a famine and some people probably grabbed larger chunks than they really wanted loan term.
Crossed with CD who says it better than me.
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poppyland
Member of DD Central
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Post by poppyland on Nov 1, 2016 13:24:47 GMT
Thanks for the explanations, which make a lot of sense. I've got very little in the scottish estate, and with 9k in PBL140 , it's a relief to know that there's nothing basically wrong with it. This forum, and the more experienced P2P investors are a huge help to relative newbies like myself.
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Post by Deleted on Nov 1, 2016 16:07:19 GMT
Thanks for the explanations, which make a lot of sense. I've got very little in the scottish estate, and with 9k in PBL140 The forum is proving to be an invaluable source of info already! On the other hand it can make you feel like the poor neighbour ....... total funds of 1k (and 13p interest) 
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gurberly
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Post by gurberly on Nov 1, 2016 16:16:09 GMT
Thanks for the explanations, which make a lot of sense. I've got very little in the scottish estate, and with 9k in PBL140 The forum is proving to be an invaluable source of info already! On the other hand it can make you feel like the poor neighbour ....... total funds of 1k (and 13p interest) Don't forget the value of compounding interest over the years... It just takes tuppence... www.youtube.com/watch?v=XxyB29bDbBAK
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Post by Deleted on Nov 1, 2016 16:26:31 GMT
Don't forget the value of compounding interest over the years... Just the six years to double my investment  If I can find loans to get my money down on of course !! (Maybe I'll add the babies savings, he's got longer to compound  )
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elsee
Member of DD Central
Retired:D
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Post by elsee on Nov 1, 2016 17:03:52 GMT
@nirish
I started about a year ago with 1k and have reinvested all my interest, you won't believe how quickly it grows, especially if you can drop the odd spare tenner in now and then. INPL is a great help too.
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Post by Deleted on Nov 1, 2016 17:36:41 GMT
@nirish I started about a year ago with 1k and have reinvested all my interest, you won't believe how quickly it grows, especially if you can drop the odd spare tenner in now and then. INPL is a great help too. INPL?? I think I my be topping up soon, contemplating increasing my P2P allowance from 10% of savings to 15% !!!! Anyway I fear we are hi-jacking the thread and should return it to its purpose !!
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oldgrumpy
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Post by oldgrumpy on Nov 1, 2016 17:38:50 GMT
Invest Now Pay Later. INPL
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poppyland
Member of DD Central
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Post by poppyland on Nov 1, 2016 17:42:57 GMT
Thanks for the explanations, which make a lot of sense. I've got very little in the scottish estate, and with 9k in PBL140 The forum is proving to be an invaluable source of info already! On the other hand it can make you feel like the poor neighbour ....... total funds of 1k (and 13p interest) Well, I know lots of people will disapprove of this, but our entire investment fund is money that we borrowed on our mortgage. With mortgage rates at 2.5%, and over 100K borrowed and invested across a bunch of platforms, we are building up money for our future retirement years. All the mortgage payments are being made out of our earned income, and so we are reinvesting all interest we receive. Being self-employed people, this is our best bet for a comfortable retirement: before we got into P2P we just planned to work till we dropped. I'm not sure I'd recommend our strategy to other people, but it's been good for us - so far anyway!
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parisingoc
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Post by parisingoc on Nov 1, 2016 22:43:20 GMT
Well, I know lots of people will disapprove of this, but our entire investment fund is money that we borrowed on our mortgage. With mortgage rates at 2.5%, and over 100K borrowed and invested across a bunch of platforms, we are building up money for our future retirement years. All the mortgage payments are being made out of our earned income, and so we are reinvesting all interest we receive. Being self-employed people, this is our best bet for a comfortable retirement: before we got into P2P we just planned to work till we dropped. I'm not sure I'd recommend our strategy to other people, but it's been good for us - so far anyway! +1. My mortgage rate is now just 1% and we can borrow more with just a click of a mouse. So my mortgage is also my investment fund and SS, MT, FS & others have been where it has landed, enabling me to pay the house down a lot earlier, using my previous employers own money! Careful choosing of amounts, loans and associated timing means I have averaged over 11% even from 'Feeble Clowns'. I like to think of it as the maxim that Northern Rock forgot which goes , I believe "Borrow long and lend short."
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guff
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Post by guff on Nov 1, 2016 23:05:10 GMT
Sheesh. How do you young ones live with such high mortgage rates? Still got 5 years left on my base rate +0.55% mortgage so currently paying 0.8%.
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poppyland
Member of DD Central
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Post by poppyland on Nov 2, 2016 5:36:22 GMT
Well, I know lots of people will disapprove of this, but our entire investment fund is money that we borrowed on our mortgage. With mortgage rates at 2.5%, and over 100K borrowed and invested across a bunch of platforms, we are building up money for our future retirement years. All the mortgage payments are being made out of our earned income, and so we are reinvesting all interest we receive. Being self-employed people, this is our best bet for a comfortable retirement: before we got into P2P we just planned to work till we dropped. I'm not sure I'd recommend our strategy to other people, but it's been good for us - so far anyway! +1. My mortgage rate is now just 1% and we can borrow more with just a click of a mouse. So my mortgage is also my investment fund and SS, MT, FS & others have been where it has landed, enabling me to pay the house down a lot earlier, using my previous employers own money! Careful choosing of amounts, loans and associated timing means I have averaged over 11% even from 'Feeble Clowns'. I like to think of it as the maxim that Northern Rock forgot which goes , I believe "Borrow long and lend short." Nice to hear that we're not the only ones investing mortgage money. Over how long have you averaged 11%? We've been going one year, and I think have averaged similar, though we trickled it bit by bit into investments, so it's hard to say. We also have money in MT and FS, but I haven't really got on top of how those platforms work yet. SS is so simple, and the bulk of our money is there.
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SteveT
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Post by SteveT on Nov 2, 2016 6:28:34 GMT
+1, at BBR+0.37%  ( guff, you were had!) My P2P portfolio IRR over the last 2 years is actually running at 11.9%, but I provision for potential future losses to around the 8% level. The last few years have been a "golden age" for P2P; it isn't always going to be like this! |
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