mike
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Post by mike on Dec 2, 2015 13:55:55 GMT
It is our opinion that the ability to diversify your portfolio through the purchase of loan parts that become available on the secondary market is of secondary importance to that of having a liquid mechanism with which to divest oneself quickly if necessary. At the moment demand is outstripping supply. It is as simple as that. @savingsstream there is a problem with instant sales that is not just a demand/supply issue. Numerous people have pointed this out. If you think that's not a problem fair enough but I would have thought the more sensible thing to do was to be open minded about how to improve the user experience for your valued and loyal customers.
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Post by meledor on Dec 2, 2015 13:57:03 GMT
It is our opinion that the ability to diversify your portfolio through the purchase of loan parts that become available on the secondary market is of secondary importance to that of having a liquid mechanism with which to divest oneself quickly if necessary. At the moment demand is outstripping supply. It is as simple as that.
Good point. Any attempt to limit the SM by rationing or restricting demand using pre-set targets will reduce the usefulness of the SM in gauging the platform's liquidity.
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Post by meledor on Dec 2, 2015 14:03:14 GMT
There were numerous occasions this morning when a loan part became available and I could see that small amounts of it were bought in succession. For those who allege bots are in operation how do you explain this? - That the bots are very choosy?
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Post by smrutib on Dec 2, 2015 14:13:18 GMT
SS has no incentive to fix this issue. As they have repeatedly stated (and is obvious from market action), investor demand far outstrips supply. It doesn't matter if the demand is coming from bots or fast fingered dedicated investors. So why make changes that will make the life of new investors better? Especially when any change will leave a subset of investors unhappy. If supply starts to catch up with demand, this problem will go away on its own.
Since I am not one of the lucky few early adopters, there is no way I can build a diversified portfolio on this platform without spending an unhealthy amount of time on it.
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pom
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Post by pom on Dec 2, 2015 14:26:16 GMT
SS has no incentive to fix this issue. As they have repeatedly stated (and is obvious from market action), investor demand far outstrips supply. It doesn't matter if the demand is coming from bots or fast fingered dedicated investors. So why make changes that will make the life of new investors better? Especially when any change will leave a subset of investors unhappy. If supply starts to catch up with demand, this problem will go away on its own. Since I am not one of the lucky few early adopters, there is no way I can build a diversified portfolio on this platform without spending an unhealthy amount of time on it. I'm an earlier adopter but definitely nowhere near one of the earliest...and actually you can build a diversified portfolio far more easily now that pre-funding is available than it was just a few months ago when if you didn't log in just as a loan was going live you'd likely get nothing. Pre-funding has made everyone's lives a LOT easier, but if you want high returns you're always going to need patience to build up your portfolio
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ablender
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Post by ablender on Dec 2, 2015 14:36:34 GMT
It is our opinion that the ability to diversify your portfolio through the purchase of loan parts that become available on the secondary market is of secondary importance to that of having a liquid mechanism with which to divest oneself quickly if necessary. At the moment demand is outstripping supply. It is as simple as that. You avoid the issue that (sometimes quite sizable) loan parts are sold within a fraction of a second, before any physical action can even apply for them. That is nothing to do with demand outstripping supply. It is of considerable interest to many lenders attempting to use the system you have developed. OG: I have seen this. My first thought was that people were transfering loan parts from one account to another - so they know exactly when they are putting it on sale and immediately buying from the other account. It could be the same person on two computers or two people perhaps communicating on the phone or Skype.
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Post by smrutib on Dec 2, 2015 14:47:27 GMT
SS has no incentive to fix this issue. As they have repeatedly stated (and is obvious from market action), investor demand far outstrips supply. It doesn't matter if the demand is coming from bots or fast fingered dedicated investors. So why make changes that will make the life of new investors better? Especially when any change will leave a subset of investors unhappy. If supply starts to catch up with demand, this problem will go away on its own. Since I am not one of the lucky few early adopters, there is no way I can build a diversified portfolio on this platform without spending an unhealthy amount of time on it. I'm an earlier adopter but definitely nowhere near one of the earliest...and actually you can build a diversified portfolio far more easily now that pre-funding is available than it was just a few months ago when if you didn't log in just as a loan was going live you'd likely get nothing. Pre-funding has made everyone's lives a LOT easier, but if you want high returns you're always going to need patience to build up your portfolio True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is.
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ablender
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Post by ablender on Dec 2, 2015 14:50:32 GMT
I'm an earlier adopter but definitely nowhere near one of the earliest...and actually you can build a diversified portfolio far more easily now that pre-funding is available than it was just a few months ago when if you didn't log in just as a loan was going live you'd likely get nothing. Pre-funding has made everyone's lives a LOT easier, but if you want high returns you're always going to need patience to build up your portfolio True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is. I think that if you have £10000 to invest you should consider yourself lucky. I do not have that much. May I suggest that you put larger amounts on prefunding the pipeline. I expect that to help. Later you can use the SM to diversify (first buy - - when successful sell an equal amount from what you do not want.)
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pom
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Post by pom on Dec 2, 2015 14:54:53 GMT
I'm an earlier adopter but definitely nowhere near one of the earliest...and actually you can build a diversified portfolio far more easily now that pre-funding is available than it was just a few months ago when if you didn't log in just as a loan was going live you'd likely get nothing. Pre-funding has made everyone's lives a LOT easier, but if you want high returns you're always going to need patience to build up your portfolio True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is. It'll always be an issue - when the platform gets bigger there'll be people wanting to invest 20,50,100k instantly. It's always going to take time, and you're never going to get full returns during that initial period. Unless you set pre-funding really high for your first few, buy a lot more than you want to hold and then fund later pre-funds from SM sales....which of course carries it's own risks if for whatever reason the SM becomes less liquid. Otherwise you need to expect it to take a few months.
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ben
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Post by ben on Dec 2, 2015 14:55:54 GMT
SS has no incentive to fix this issue. As they have repeatedly stated (and is obvious from market action), investor demand far outstrips supply. It doesn't matter if the demand is coming from bots or fast fingered dedicated investors. So why make changes that will make the life of new investors better? Especially when any change will leave a subset of investors unhappy. If supply starts to catch up with demand, this problem will go away on its own. Since I am not one of the lucky few early adopters, there is no way I can build a diversified portfolio on this platform without spending an unhealthy amount of time on it. I agree why fix something that works for them, they obviously have some big investors on. I watched it for about 5 mins dull I know and there were several loans of 10,000s that went in seconds. As an investor I like to diversify but that does not always work for the site
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Post by duncandive on Dec 2, 2015 14:57:48 GMT
I sold 3 parts at just after 1am in the wee hours last night/this morning, all went by the time I'd refreshed the page. The manual bidders around here must be getting square eyes by now. (or should that be 16:9 aspect ratio eyes) edit; in fact having just checked the emails, the '100% sold' email landed at 1:04am and the 'confirmation that your part is for sale' landed at 1:05am. Fast by anyone's standards. I think I may beat you on that. If I remember well there was at least one occasion where the "sold email" arrived before the "your part is for sale" email. You Really NEED to Read this Again.... 
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ablender
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Post by ablender on Dec 2, 2015 15:01:14 GMT
I think I may beat you on that. If I remember well there was at least one occasion where the "sold email" arrived before the "your part is for sale" email. You Really NEED to Read this Again.... Yes - you are right. I loose. 
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SteveT
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Post by SteveT on Dec 2, 2015 15:03:42 GMT
True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is. Unless you have an extreme aversion to even minimal risk (in which case, P2P may not be for you) then you can get there very much faster than that. Set your pre-funding targets to aim for an allocation of (say) £2k in each of the next 5 new loans, flexing your requested figure to reflect the size of each loan. This will get you fully invested in a matter of weeks and, given that SS retain the interest before advancing the remaining funds to borrowers, the chances of hitting a problem in the first few months of a loan are low (IMHO). Then try to be allocated £1k in each of the next 5 new loans, selling down parts in the 5 loans you already hold when they launch (so you then have £1k in each of 10 loans). Then aim for £500 in each of the next 10 new loans and keep going in the same fashion until you reach your "steady state" diversification. [crossed with pom!]
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pom
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Post by pom on Dec 2, 2015 15:12:48 GMT
True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is. Unless you have an extreme aversion to even minimal risk (in which case, P2P may not be for you) then you can get there very much faster than that. Set your pre-funding targets to aim for an allocation of (say) £2k in each of the next 5 new loans, flexing your requested figure to reflect the size of each loan. This will get you fully invested in a matter of weeks and, given that SS retain the interest before advancing the remaining funds to borrowers, the chances of hitting a problem in the first few months of a loan are low (IMHO). Then try to be allocated £1k in each of the next 5 new loans, selling down parts in the 5 loans you already hold when they launch (so you then have £1k in each of 10 loans). Then aim for £500 in each of the next 10 new loans and keep going in the same fashion until you reach your "steady state" diversification. [crossed with pom!] and ablender 
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ablender
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Post by ablender on Dec 2, 2015 15:14:19 GMT
True, Pre-funding is a great option to build up a position without taking part in the SM hunger games. But here is my problem. If I have 10K to invest on SS and it takes me a year to invest the funds using pre-funding, then my returns are lower than 12%. Once the platform is bigger this should not be an issue. But right now it is. Unless you have an extreme aversion to even minimal risk (in which case, P2P may not be for you) then you can get there very much faster than that. Set your pre-funding targets to aim for an allocation of (say) £2k in each of the next 5 new loans, flexing your requested figure to reflect the size of each loan. This will get you fully invested in a matter of weeks and, given that SS retain the interest before advancing the remaining funds to borrowers, the chances of hitting a problem in the first few months of a loan are low (IMHO). Then try to be allocated £1k in each of the next 5 new loans, selling down parts in the 5 loans you already hold when they launch (so you then have £1k in each of 10 loans). Then aim for £500 in each of the next 10 new loans and keep going in the same fashion until you reach your "steady state" diversification. [crossed with pom!] and as a effect of this you will also generate more sales on the SM for others to buy. Win - win.
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