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Post by peregrine on Apr 21, 2017 14:48:48 GMT
Why am I selling ? Its actually not because I need the money but simply because I am getting nervous. My strategy previously has been to sell at 45 days so that I dont have to deal with potential defaults. My fear is that Lendy have now taken on too many junk loans with dubious valuations. I will see how the next week or so goes and if nothing shifts will certainly give up on investing on the platform. Hopefully I am wrong !!!
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GeorgeT
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Post by GeorgeT on Apr 21, 2017 16:35:46 GMT
I understand why some are feeling a bit twitchy.I am in the same boat.
However I am being rational because -
1. The next interest run is due in 9 days and that always leads to a spree of buying on the SM. I am sure many stuck loan parts in loans with time left to run and IOA will shift on May 1st.
2. There has been a glut of new loans in the last week - too many. This amount of new loans is unsustainable IMO. When a glut of new loans go live, people try to sell down in older loans to pay for them. So many are trying to sell at the same time and there is not enough new money going in to keep the SM moving.
3. A couple of planned repayments haven't materialied yet but when they do it will help to clear the blockage.
I will be reviewing the situation in early May after the next interest run but I do have some concerns Ly is growing its business at an unsustainable pace and would like them to put the brakes on a bit and concentrate on fewer new loans but higher quality ones. In 'Paulspeak' - perhaps review the routemap.
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hazellend
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Post by hazellend on Apr 21, 2017 17:30:52 GMT
Looks like ABLrate has the best functioning secondary market. Lendy should copy it in my opinion.
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jonah
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Post by jonah on Apr 21, 2017 18:07:34 GMT
Looks like ABLrate has the best functioning secondary market. Lendy should copy it in my opinion. Once they offer an ISA wrap so I can forget about trying to work out the tax implications I may agree with you. Until then AC has the best approach imo.
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fasty
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Post by fasty on Apr 21, 2017 18:23:24 GMT
Looks like ABLrate has the best functioning secondary market. Lendy should copy it in my opinion. It's very flexible, but I suspect simply too complicated for many people.
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r1200gs
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Post by r1200gs on Apr 21, 2017 18:27:27 GMT
Looks like ABLrate has the best functioning secondary market. Lendy should copy it in my opinion. It's very flexible, but I suspect simply too complicated for many people. Including me. Lendy simplicity is the big attraction for dummies like me.
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jomantha
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Post by jomantha on Apr 21, 2017 20:36:43 GMT
Perhaps saturation point has been reached. Not surprised given so many are defaulted. I'm beginning to get the heeby jeebies and wont be investing any more until I start seeing some more loans redeeming on time and deafaults coming down. Makes me worried that SS is lending without proper due diligence on flaky valuation reports We had a couple of days like this lastmo the and it all just levelled out a d went back to nothing being available
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Liz
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Post by Liz on Apr 21, 2017 20:40:45 GMT
Not surprised given so many are defaulted. I'm beginning to get the heeby jeebies and wont be investing any more until I start seeing some more loans redeeming on time and deafaults coming down. Makes me worried that SS is lending without proper due diligence on flaky valuation reports We had a couple of days like this lastmo the and it all just levelled out a d went back to nothing being available I don't know, things might be different this time. Is now the time to bail from LTPP?
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GeorgeT
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Post by GeorgeT on Apr 21, 2017 21:10:59 GMT
I have decided to make a decision about my future as regards Ly at the beginning of May. It will be a short term blow to me, financially, if I decide to leave the party but no party can last forever.
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Liz
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Post by Liz on Apr 21, 2017 21:19:18 GMT
I have decided to make a decision about my future as regards Ly at the beginning of May. It will be a short term blow to me, financially, if I decide to leave the party but no party can last forever. Are you moving funds to a new site, the bank or spending it? FundingSecure do have their IFISA, if you are a taxpayer and need a tax free wrapper.
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Post by p2plender on Apr 22, 2017 0:05:09 GMT
I have decided to make a decision about my future as regards Ly at the beginning of May. It will be a short term blow to me, financially, if I decide to leave the party but no party can last forever. I'm getting out as well. The warning signs are there and the prolonged illiquid sm is the final nail in the coffin for me. Just withdrawn a pile after waiting 4 days for a 100+ to sell.
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Post by df on Apr 22, 2017 1:30:41 GMT
I have decided to make a decision about my future as regards Ly at the beginning of May. It will be a short term blow to me, financially, if I decide to leave the party but no party can last forever. I'm getting out as well. The warning signs are there and the prolonged illiquid sm is the final nail in the coffin for me. Just withdrawn a pile after waiting 4 days for a 100+ to sell. I just wanted to reduce my allocation in some loans that I invest more than I should. Looked at the queues and gave up. It looks like many investors are withdrawing, not many new ones are willing to join the platform and SM is stuck. Doesn't look like a bright future for Ly, unless they somehow manage to recover all capital and interest from current defaulted loans.
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r1200gs
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Post by r1200gs on Apr 22, 2017 3:04:08 GMT
The SM really does look dead as a doornail, at least in the loans I'm selling. Still, these things can change quickly with a nice fat loan repayment and not long to go for end of month interest payment. All bets are off if millions in new loans get released before the end of the month though.
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Post by lendinglawyer on Apr 22, 2017 8:11:47 GMT
Under normal circumstances I would think the forthcoming interest run and repayments (which I think are approx the amount available on the SM, ie driven by the "double exposure" some currently have to certain borrowers) would solve a lot of this, as has been the cycle historically. However there is also the chunky PBL173 going live soon. My suspicion is that actually this go live has been postponed to take place with the repayments so that it can be filled, and hence SM may remain neglected.
So I am of the overall opinion that the current glut of SM availability is driven primarily by the pace of new loans outstripping investor appetite. Lendy should be wary of trying to grow too quickly. But their strategy seems to be growth, growth and more growth. It's that strategy for new business, not the state of the current loan book (although bits of hat are clearly not fab), that has me more worried...
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jomantha
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Post by jomantha on Apr 22, 2017 8:35:40 GMT
A lot of the 12% loans have cleared though - I have just looked at the loans I want to sell on - and on thrusday and friday there appeared to be no point in selling them the queues were so high, but they are down to a few thousand this morning.
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