SteveT
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Post by SteveT on Oct 28, 2016 11:37:36 GMT
Poll now closed. Of 90 forum voters, 30% planning to pre-fund, 70% planning to pass.
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Post by pepperpot on Oct 28, 2016 11:42:23 GMT
... upped demand due to the magic of double figure interest (even if it isn't, quite, ish, nearly there).
For someone in churn mode, do I sell 12% to fund 10%? It's not that I think this is a terrible deal, but...
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Post by Deleted on Oct 28, 2016 11:43:59 GMT
Heh, I was just about to switch my vote from yes to no Nothing against this particular loan, I've had so many other loans to feast on in the last few days thanks to the abundant SM, I've reached my platform limit now!  |
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hantsowl
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Post by hantsowl on Oct 28, 2016 12:54:53 GMT
... upped demand due to the magic of double figure interest (even if it isn't, quite, ish, nearly there). For someone in churn mode, do I sell 12% to fund 10%? It's not that I think this is a terrible deal, but... I agree totally with that last comment. Whilst the loan looks ok, why would I sell a 12% loan to fund one at 10%? I am fairly well diversified now in loans that I want to hold and probably at the limit of what I am prepared to commit to p2p at the moment.
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mikes1531
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Post by mikes1531 on Oct 28, 2016 17:08:20 GMT
Poll now closed. Of 90 forum voters, 30% planning to pre-fund, 70% planning to pass. Sorry, I didn't see this thread until after the poll had closed. My vote would have been "Yes, but..." (I've set my pre-funding at about 20% of what I normally would put into a similar 12% loan. Mostly to maintain diversification.)
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mikes1531
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Post by mikes1531 on Oct 28, 2016 17:14:16 GMT
For someone in churn mode, do I sell 12% to fund 10%? It's not that I think this is a terrible deal, but... I agree totally with that last comment. Whilst the loan looks ok, why would I sell a 12% loan to fund one at 10%? My main reasons for doing that are: - The remaining term of the 12% loan is getting too short for my comfort; or
- I've recently learned something about the borrower that makes me a bit more concerned that they might not want -- or be able -- to repay and that SS will have to repossess the property and sell it.
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mikes1531
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Post by mikes1531 on Oct 28, 2016 17:21:34 GMT
... SS have entered 0.8333 which when multiplied by 12 becomes 9.9996. The documents make it clear that it is 10%. The documents may well say 10%, but if the monthly interest calculation is based on the 0.8333 number entered, then all we're going to get is 9.9996%. Not that is will make a bean's worth of difference to anyone. Well, maybe a couple of beans' worth of difference to the BHs. 
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ablender
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Post by ablender on Oct 28, 2016 17:26:53 GMT
I agree totally with that last comment. Whilst the loan looks ok, why would I sell a 12% loan to fund one at 10%? My main reasons for doing that are: - The remaining term of the 12% loan is getting too short for my comfort; or
- I've recently learned something about the borrower that makes me a bit more concerned that they might not want -- or be able -- to repay and that SS will have to repossess the property and sell it.
The only problem I see with your last point is that the property will not sell cheap enough for me to be able to afford it.
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hantsowl
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Post by hantsowl on Oct 28, 2016 18:21:06 GMT
I agree totally with that last comment. Whilst the loan looks ok, why would I sell a 12% loan to fund one at 10%? My main reasons for doing that are: - The remaining term of the 12% loan is getting too short for my comfort; or
- I've recently learned something about the borrower that makes me a bit more concerned that they might not want -- or be able -- to repay and that SS will have to repossess the property and sell it.
Neither of those reasons are relevant to the loans I currently hold. I hold none with less than about 120 days remaining and have avoided any where I have concerns about the borrowers. When the term remaining eventually reaches my lower limit or I read something concerning about a borrower, l will sell and reinvest. But again, there are plenty of good long term 12% loans flitting through the SM so why would I opt for a 9 or 10% loan. Maybe if the SM dried up I would reconsider, but that has not been the case for the last year that I have been with SS.
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ablender
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Post by ablender on Oct 28, 2016 19:17:00 GMT
My main reasons for doing that are: - The remaining term of the 12% loan is getting too short for my comfort; or
- I've recently learned something about the borrower that makes me a bit more concerned that they might not want -- or be able -- to repay and that SS will have to repossess the property and sell it.
Neither of those reasons are relevant to the loans I currently hold. I hold none with less than about 120 days remaining and have avoided any where I have concerns about the borrowers. When the term remaining eventually reaches my lower limit or I read something concerning about a borrower, l will sell and reinvest. But again, there are plenty of good long term 12% loans flitting through the SM so why would I opt for a 9 or 10% loan. Maybe if the SM dried up I would reconsider, but that has not been the case for the last year that I have been with SS. Make sure that you do not end up putting your eggs into very few baskets.
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hantsowl
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Post by hantsowl on Oct 28, 2016 20:47:46 GMT
Neither of those reasons are relevant to the loans I currently hold. I hold none with less than about 120 days remaining and have avoided any where I have concerns about the borrowers. When the term remaining eventually reaches my lower limit or I read something concerning about a borrower, l will sell and reinvest. But again, there are plenty of good long term 12% loans flitting through the SM so why would I opt for a 9 or 10% loan. Maybe if the SM dried up I would reconsider, but that has not been the case for the last year that I have been with SS. Make sure that you do not end up putting your eggs into very few baskets. Currently shared across 34 baskets which I am happy with. May become a problem in the future as I drop some loans if the supply of new 12% loans dries up. I may eventually have to invest in sub 12% loans, but for the present I do not need to.
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ganymede
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Post by ganymede on Oct 29, 2016 7:36:21 GMT
Live, my allocation £3000
1039 investors
Some on SM all gone now.
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poppyland
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Post by poppyland on Oct 29, 2016 9:27:00 GMT
Live, my allocation £3000 1039 investors Some on SM all gone now. My allocation £3,000 too. I'm using it as a storage place for money - good to know that it sells well on the SM.
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Post by doorway on Oct 29, 2016 10:15:28 GMT
I think we might be getting an insight into the workings of SS's systems, with specific reference to decimal places... 9.9996% per annum is 0.8333% per month. 10.0% per annum is 0.833(recurring)% per month. I did suggest it might not be a coincidence that the first was 9%, which is 0.75%/mo... Coming soon - 10.5%/pa? (0.875%/mo) !% per month is not 12% per year 0.75% per month is not 9% per year Income paid monthly compounds during then year.
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Post by brokenbiscuits on Oct 29, 2016 10:28:40 GMT
I think we might be getting an insight into the workings of SS's systems, with specific reference to decimal places... 9.9996% per annum is 0.8333% per month. 10.0% per annum is 0.833(recurring)% per month. I did suggest it might not be a coincidence that the first was 9%, which is 0.75%/mo... Coming soon - 10.5%/pa? (0.875%/mo) !% per month is not 12% per year 0.75% per month is not 9% per year Income paid monthly compounds during then year. Compounding works Assuming reinvestment, which isn't a requirement for this site.
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