DFL008 /DFL035 - O** H*** Street, Liverpool - REPAID

I had two parts in DFL035

1: invested on 01/03/2018, sold on 10/05/2018 after receiving cashback payment equivalent to 2% on 04/05/2018. Nothing has been clawed back, so all interest paid on that loan part has been retained.

2: invested on 04/05/2018, held to completion, receiving cashback equivalent to 1% on 04/06/2018. "Capital shortfall" of about 5.33% is equivalent to the interest received on that loan part (not including the accrued-but-not-paid interest)

Both of these were technically "Primary market" investments, so I've no direct evidence for how they handle loan parts bought on the secondary market - in particular whether there was an equitable division of the shortfall amongst current loan part holders (5.33% loss) that just happened to cancel out for those who reported so far (but which caused an overall loss for later investors), or whether there was an inequitable division of the shortfall.

I suspect that the inequitable division is what actually happened. Investors who want to mitigate against similar inequitable divisions in the future might perhaps choose to periodically sell all their loan parts ("locking in" the interest gains to date) and buy an equivalent amount of "new" loan parts... something I've sometimes done for other reasons anyway (e.g. I'd rather hold a single loan part for a round amount than a bunch of "shrapnel"), and so might inadvertently benefit from.

Yes, the suspension of the large number of connected loans that nobody wanted any more of does seem to have been the trigger for the recent speed-up in sales on the rest of the market (especially as this was also combined with some substantial repayments on other loans).

Mr_N incorrectly stated that nothing is selling, when in fact almost everything that can be sold is now selling, and most of it quite quickly. I did quite a few trades to tidy up my portfolio during the couple of weeks before Christmas, which were enabled by the shorter queues and faster selling speeds.

Sure, but when the manager of the same supermarket has cleared the shelves of all the stale stuff nobody wanted to buy anyway, and can now report a large increase in sales, with several stock lines sold out completely, and most of the rest selling within a day or two, the guy whose frame of reference was from a few months ago, and is still sat outside the supermarket telling all the shoppers coming out with full shopping bags that "nothing is selling" starts to look a little silly! Especially when some of them are also suppliers to the supermarket and know perfectly well that their own stuff sells quickly too.

I suspect the mistake you're making is that you see a queue one day, then see a queue the next day, and assume that unsold loan parts from the previous day are still remaining unsold, without having bothered to check the "investor activity" tab where actual sales volume is recorded. For the loan part I sold yesterday while making some minor re-organisations to my portfolio, there was a £2k queue yesterday and there's a £4k queue today, but NONE of the loan parts that were in the queue yesterday are still there today; they all sold within a few hours - mine at some point in the evening, probably around the time of your reply... even the queues that aren't empty are moving queues rather than the almost static ones you're perhaps accustomed to.

I've got the 800+ days of default loans too. However, these are a small part of diversified portfolio that is still earning more interest overall than it is losing to unrecoverable defaults.

If you chose to manage your portfolio differently that was of course up to you, but I'm quite happy to have banked the interest that's been paid while my loan parts were NOT in the sales queue.

When you've participated in some recent loans you can come back and lecture people about the performance of the current market.