metoo
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Post by metoo on Oct 31, 2016 15:22:27 GMT
I think the most interesting thing is the way this is being sold as being off the back of more accurate loanbook stats. So while we've been whinging that A+/A have been getting riskier, the stats apparently suggest they're overpriced and are safer than we thought. Meanwhile, at the other end, the Es are even more toxic than we were expecting... I wonder what the expected default rate over five years is for those 21.9% return loans...? <holds nose> "There will be no change to our estimated bad debt rates due to this change." However, their stress testing assumed double the predicted loss rates for each band in the case of a downturn. Surely the rates at the low end should be what the market will pay- are FC saying that businesses are not taking up loans because they are too expensive ? Possibly the market for SME loans is becoming more competitive and they will want to be continuing to grow volume. Lower rates will mean they can lend more. I would guess the rise in rates on the higher risk bands is so the average diversified return (after losses and fees) can continue at 7%, which sells FC to new lenders. Maybe higher risk borrowers have fewer options so will face paying the extra interest. And actually, autobidders do get Ds and Es if their settings allow for it, albeit mainly second hand at par.
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Post by GSV3MIaC on Oct 31, 2016 17:18:48 GMT
Have any personal investors had any luck getting access to the API? No. Not even any luck getting access to INFORMATION about the API (except broken promises, and those not for a long time).
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mikeb
Posts: 1,072
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Post by mikeb on Oct 31, 2016 17:45:10 GMT
I recall FC posted a blurry satellite photograph of the area of very long grass that the API is currently in ....
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fasty
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Post by fasty on Oct 31, 2016 17:50:51 GMT
I'm not even sure FC know where their web servers are. Because almost nothing has changed on them since I joined years ago. "Live updates" remain at beta  |
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adrianc
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Post by adrianc on Oct 31, 2016 17:54:13 GMT
I'm not even sure FC know where their web servers are. Because almost nothing has changed on them since I joined years ago. "Live updates" remain at beta Remember the beta of live bidding updates?
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Post by longjohn on Oct 31, 2016 18:01:07 GMT
I'm not even sure FC know where their web servers are. Because almost nothing has changed on them since I joined years ago. "Live updates" remain at beta Live updates were only relevant during an auction. It was simpler to switch to fixed rates than fix it.  J
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Post by carpecyprinidae on Oct 31, 2016 18:25:28 GMT
Hi everyone
Very infrequent poster but occasional reader here. I've got about £7K in FC, 100% of which is in A+ rated Property loans with LTVs under 75% - this was my logic, that if there's a reduction in property values that threatens my investment, then I was probably screwed anyway by the broader economic context.
Was perfectly happy with the 7.7% I'm making on average. I have not had a single default - not one, not a penny, quite happy with that too.
I wonder if a lot of FC investors are like me, and they want to tempt us down the market into investing in SME or unsecured loans. I certainly will NOT.
I had been following the logic recommended on this board of selling all loan units when they get to 2 months to maturity, after having some of my cash locked up in a certain west country business for a quite long time. I think I shall stop doing this - as now if I liberate my capital with 2 months to go I shall probably only be able to reinvest it at lower rates of return, while if a proploan goes long overdue I'll keep accruing delayed interest at the original 8 to 9% rate.
Anyone else rethinking their strategy?
On a broader context I will now be looking into other platforms. Just to see if its possible to do better with similar levels of security, I have no appetite for unsecured loans.
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am
Posts: 1,495
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Post by am on Oct 31, 2016 19:53:49 GMT
Hi everyone Very infrequent poster but occasional reader here. I've got about £7K in FC, 100% of which is in A+ rated Property loans with LTVs under 75% - this was my logic, that if there's a reduction in property values that threatens my investment, then I was probably screwed anyway by the broader economic context. Was perfectly happy with the 7.7% I'm making on average. I have not had a single default - not one, not a penny, quite happy with that too. I wonder if a lot of FC investors are like me, and they want to tempt us down the market into investing in SME or unsecured loans. I certainly will NOT. I had been following the logic recommended on this board of selling all loan units when they get to 2 months to maturity, after having some of my cash locked up in a certain west country business for a quite long time. I think I shall stop doing this - as now if I liberate my capital with 2 months to go I shall probably only be able to reinvest it at lower rates of return, while if a proploan goes long overdue I'll keep accruing delayed interest at the original 8 to 9% rate. Anyone else rethinking their strategy? On a broader context I will now be looking into other platforms. Just to see if its possible to do better with similar levels of security, I have no appetite for unsecured loans. The published rates don't apply to property loans. Consequently we don't know whether we'll be able to recycle maturing property loans at the same rate or not.
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blender
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Post by blender on Oct 31, 2016 22:24:02 GMT
Is there life after Hendon5?
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fasty
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Post by fasty on Oct 31, 2016 23:15:02 GMT
Is there life after Hendon5? Hendon 6... ? I thought that these were getting slower and slower to fill, almost starting to wonder whether the cashback pixie would have to be brought out of retirement, but the threat of lower rates on A+ seems to have perked up demand a bit.
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fasty
Member of DD Central
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Post by fasty on Nov 1, 2016 0:45:24 GMT
Nah, I'm bursting with Byfleet and Hendon, it's gonna be messy if the bubble bursts or repayments become increasingly voluntary. A lush arboretum in another place is drawing my interest.
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blender
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Post by blender on Nov 1, 2016 8:25:49 GMT
Nah, I'm bursting with Byfleet and Hendon, it's gonna be messy if the bubble bursts or repayments become increasingly voluntary. A lush arboretum in another place is drawing my interest. Same here. The other 10% property loans are gradually going now. Only that cash back pixie can save the available funds from becoming unavailable.
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Post by longjohn on Nov 1, 2016 12:36:54 GMT
There's a change comparison chart on the FC Blog now.  J |
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acky
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Post by acky on Nov 1, 2016 14:41:16 GMT
Doesn't seem to have been many loans coming on to the PM so far this week (apart from a number of unattractive Property loans). Have borrowers realised that they can they can pull their applications, resubmit in 6 days' time and get a better rate?
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r00lish67
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Post by r00lish67 on Nov 1, 2016 14:57:47 GMT
Doesn't seem to have been many loans coming on to the PM so far this week (apart from a number of unattractive Property loans). Have borrowers realised that they can they can pull their applications, resubmit in 6 days' time and get a better rate? By the same token a few additional D's and E's coming in before the rates get worse would also be welcome, but not seemingly forthcoming.
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