mikes1531
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Post by mikes1531 on Sept 18, 2014 11:01:03 GMT
Wellesley are offering a fixed 7% on a 5 year term. Not sure how that compares with the RateSetter deal in terms of risk etc. Those are corporate mini bonds, not really P2P and not comparable to RS. Totally unsecure & untradeable. Wellesley rates from P2P 5 year are 5.83 monthly interest or 6.76 for payment at term. Someone -- wellesleyco? -- can correct me if I'm wrong, but AIUI, the two Wellesley rates quoted produce the same AER. 5.83% paid monthly compounds to 5.99% p.a. and 33.8% (=6.76% x 5 years) paid after five years is also the equivalent of 5.99% p.a. There's a footnote below the interest rate table that says "All interest rates quoted as simple annual non-compound rates." I suspect most people reading that don't understand its significance. And if my understanding isn't correct, neither do I!  The Wellesley 5-year bond pays its 7% interest biannually, so that should be 7.12% AER.
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markr
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Post by markr on Sept 18, 2014 12:17:35 GMT
ratesetter is fully amortising whereas Wellesley returns capital on maturity And with rising interest rates on the cards, this is an important distinction.
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Post by yorkshireman on Sept 18, 2014 16:57:46 GMT
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mikes1531
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Post by mikes1531 on Sept 19, 2014 0:17:06 GMT
If interest rates stay low, there's less disadvantage in going for a long fix, but there's still no advantage in the long fix. Getting some of your capital back every month can provide extra funds if you need them. And if you don't need them then you can re-invest them at the same rate so you don't lose out. If you're lending to an actual borrower -- as opposed to a platform that's doing the lending and paying you interest for the use of your money -- then repayment loans generally ought to become more secure as the capital balance decreases because the borrower should be in a better position to refinance and pay you off if they need to. If you have a secured loan, then the LTV decreases as the capital is returned. That's why I prefer them over interest-only loans.
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Post by jackpease on Sept 19, 2014 7:26:12 GMT
>>>>A good selection of PBL parts for sale at the moment. That's me - not abandoning Saving Stream - having a bit of a garage sale to fund my bungs into 6.2% Ratesetter 5yr rate which has been swallowing up as much as i can throw at it. Jack Pease I would just like to say how easy the 'garage sale' process was - parts are clearly very liquid on SS and sold within minutes. I withdrew the four-figure proceeds and within hours the money was in my bank account - I've bought and sold on many platforms and am finding SS as good as Assetz, which has been the one to beat. Jack Pease
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mikes1531
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Post by mikes1531 on Sept 19, 2014 11:24:05 GMT
>>>>A good selection of PBL parts for sale at the moment. That's me - not abandoning Saving Stream - having a bit of a garage sale to fund my bungs into 6.2% Ratesetter 5yr rate which has been swallowing up as much as i can throw at it. Jack Pease I would just like to say how easy the 'garage sale' process was - parts are clearly very liquid on SS and sold within minutes. I withdrew the four-figure proceeds and within hours the money was in my bank account - I've bought and sold on many platforms and am finding SS as good as Assetz, which has been the one to beat. In some respects, SS are better than AC. Selling loan parts at AC is a bit hit or miss. If you offer to sell something that's in short supply, it sells instantly thanks to AC's AutoInvest feature. Something that's in less demand, will appear on AC's Aftermarket and a reasonable amount probably will sell in a few hours. If you try to sell something that already has a number of parts for sale -- possibly because underwriters are still trying to exit -- you might have to wait a very long time before you find a taker unless you're willing to sell at a discount. One advantage AC have is that loan parts for sale continue to accrue interest for the seller. A big advantage SS have is the prioritising of lender parts over underwriter parts in the sales queue. That's why it's possible for us to sell PBL005 loan parts now, and that no doubt encourages lenders to buy PBL005 parts in the current situation. Another advantage SS have is withdrawal speed. I made an AC withdrawal at the end of the day on Tuesday, and it took until this morning (Friday) before the money arrived at my bank. Whether SS can retain these advantages if they were to grow their loan supply to the point where it's larger than their lender demand -- as AC seem to have done -- remains to be seen. I expect this is an strong reason to have a good plan for managing the growth of both sides of the platform.
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will
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Post by will on Sept 23, 2014 15:49:27 GMT
Thanks, Money. Now I'm a bit more boatified  |
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oldgrumpy
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Post by oldgrumpy on Sept 23, 2014 16:04:02 GMT
Thanks, Money. Now I'm a bit more boatified ........ oh! Sorry! I thought that said beatified! 
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will
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Post by will on Sept 23, 2014 16:25:11 GMT
Well, a bit more of a stake in boats ....
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spockie
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Post by spockie on Apr 11, 2015 16:14:26 GMT
Some of virtually every loan currently available!
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mikes1531
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Post by mikes1531 on May 12, 2015 18:55:40 GMT
I've decided to sell some of my PBL011 and PBL012 so that I can invest a bit into today's PBL033. The first few small bits went quickly, though with the usual instances of the amount available going negative so that the next bit I offered for sale didn't show up as available, leaving me with some parts put up for sale that nobody can buy until savingstream sort things out, presumably tomorrow. That grumble aside, I still do have more that I'd like to sell, so if there's anyone reading this that hasn't already noticed my parts in these two loans up for sale and bought all they want, then this is your big chance. |
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Post by duncandive on May 12, 2015 19:07:20 GMT
I am begining to think that if SS are going to list a New PBL (as in PBL033) they could at least have some one available to deal with all the little hic-ups that happen from folks like us choose to sell other loan parts in order to move some investment into the new loan as well. I now have two loan parts that must have sold, since the PBL in question is now over subscribed, but I am still waiting for the money to be put into my account for me to purchase a slice of PBL033. If I still had hair then I would now have even less...
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Post by ajduk on May 12, 2015 19:18:42 GMT
If you ask for say £3K as a deposit, use that to fund a loan, then sell £3K in loan parts (all on same day) - do they then still expect a £3K deposit within 24hrs or will they be happy with the fact that £3K is sat there in your account?
Anyone tried doing similar to this? Seems the logical way to reallocate money in a highly liquid market.
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mikes1531
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Post by mikes1531 on May 12, 2015 19:24:34 GMT
If you ask for say £3K as a deposit, use that to fund a loan, then sell £3K in loan parts (all on same day) - do they then still expect a £3K deposit within 24hrs or will they be happy with the fact that £3K is sat there in your account? Anyone tried doing similar to this? Seems the logical way to reallocate money in a highly liquid market. I think that if you email SS to explain the situation they would cancel the deposit for you.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on May 12, 2015 20:36:23 GMT
If you ask for say £3K as a deposit, use that to fund a loan, then sell £3K in loan parts (all on same day) - do they then still expect a £3K deposit within 24hrs or will they be happy with the fact that £3K is sat there in your account? Anyone tried doing similar to this? Seems the logical way to reallocate money in a highly liquid market. It definitely doesn't happen automatically - you'd have to email and get them to do it manually because the two step 'deposit' system is designed as precisely that and the part one is used to reconcile with part 2 when the money arrives. For this reason, you need to precisely match the part 1 deposits with part 2 amounts transferred in. I have done what you suggest only on those occasions when the error in their system has prevented the proceeds of a sale from showing up in my account. I think in that circumstance it's a fair abuse of the normal system, and it's reasonable to involve them in some additional manual processing to mitigate the problem their system caused. However, SS are being very generous in crediting accounts instantly on the Part 1 of the two stage deposit process and I am of the opinion that we shouldn't abuse it and cause them extra manual processing on a regular basis; in their position I might consider taking the instant credit privilege away in those circumstances, and we wouldn't want that.
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