sl75
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Post by sl75 on Jan 18, 2018 15:56:57 GMT
Are you confusing this with the PBL133/194 pair? I was replying to Sl75 and his reference to PBL133, not this loan!  I was referring to this loan, which also paid out a bonus today (in addition to the one paid for PBL133) for double astonishment. Looking more closely, it seems that today's purchase also received some normal interest, which it probably shouldn't have received.
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Post by skint4achange on Jan 18, 2018 15:59:12 GMT
I was replying to Sl75 and his reference to PBL133, not this loan! I was referring to this loan, which also paid out a bonus today (in addition to the one paid for PBL133) for double astonishment. Looking more closely, it seems that today's purchase also received some normal interest, which it probably shouldn't have received. Sorry, I didn't actually realise that the same had happened to this loan until after I had made my comment.  Think I am just confusing this issue! I'll get me coat!
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rrrupert
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Post by rrrupert on Jan 18, 2018 16:27:56 GMT
I purchased some of these late yesterday and also got credited with some unexpected bonus interest today. I assume this is some kind of error and Lendy will recover the monies from my account.
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Post by skint4achange on Jan 18, 2018 16:32:10 GMT
I purchased some of these late yesterday and also got credited with some unexpected bonus interest today. I assume this is some kind of error and Lendy will recover the monies from my account. No error. The bonus interest is payable to whoever holds the loan part at the time of the interest payment. It's just your lucky day!
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MONEY
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Post by MONEY on Mar 12, 2018 12:50:48 GMT
Revision made to T6's loan value:-  |
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withnell
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Post by withnell on Mar 12, 2018 20:15:53 GMT
This sounds like what Collateral tried to do on the Bolton loan - new tranches, equal ranking, but with a different coupon rate. Makes it even harder to sell if you're in the lower-rated chunk!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 12, 2018 20:25:39 GMT
This sounds like what Collateral tried to do on the Bolton loan - new tranches, equal ranking, but with a different coupon rate. Makes it even harder to sell if you're in the lower-rated chunk! No, Collateral tranches with higher rates ranked behind lower rate tranches which made sense. This makes no sense but then nor does lower ranking loans with the same rate.
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withnell
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Post by withnell on Mar 13, 2018 6:47:42 GMT
This sounds like what Collateral tried to do on the Bolton loan - new tranches, equal ranking, but with a different coupon rate. Makes it even harder to sell if you're in the lower-rated chunk! No, Collateral tranches with higher rates ranked behind lower rate tranches which made sense. This makes no sense but then nor does lower ranking loans with the same rate. Originally COL proposed to do higher interest, same ranking, then backtracked due to investor feedback - I don't have time to look but it's on the related thread on COL forum
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Post by spareapennyor2 on Mar 14, 2018 13:53:37 GMT
DFL10 T7 13.52 128 investors
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Post by Deleted on Mar 16, 2018 8:15:30 GMT
Does anyone else completely disagree with the concept of equally ranked tranches at higher rates?
I fully understand the secondary market is not a guarantee of sale but in launching these 13% tranches as opposed to the previously used cashback, Lendy are effectively choosing to completely shut down any chance of selling the 12% tranches.
Should higher rate tranches not be second charge? Ironic as they do attempt second charge loans at the same rate! Bewildering, making it up as you go along much?
I was never too fussed on a discounted secondary market but I don't see how they can do one without the other here. Unless of course they want to isolate and aggravate their lenders ..... again!
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SteveT
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Post by SteveT on Mar 16, 2018 8:23:37 GMT
I agree that it's quite surreal for tranches to pay different rates yet still rank pari-passu. If this became the norm, lenders would have little incentive to fund early tranches, knowing that later ones may pay a higher rate and block any potential SM exit. Hopefully it's an aberration that soon will be corrected.
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sl75
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Post by sl75 on Mar 16, 2018 10:18:40 GMT
I agree that it's quite surreal for tranches to pay different rates yet still rank pari-passu. If this became the norm, lenders would have little incentive to fund early tranches, knowing that later ones may pay a higher rate and block any potential SM exit. Hopefully it's an aberration that soon will be corrected. In other P2P models, different lenders receiving different rates for the same loan at the same ranking and risk has historically been the norm. Zopa, RateSetter, and Funding Circle all used this at launch, and RateSetter still do. Zopa's original "Rapid Return" secondary market also functioned for almost all sellers despite very different rates on individual loans and no opportunity to offer a premium or discount (only those at the very lowest rates may possibly have found themselves unable to exit). You also assume that it will be the later tranches that are at the higher rate. There have been times in the past when almost all 12% loans would instantly sell on the Lendy market, so why give away 12% interest on a later tranche when only 11% or 10% is necessary to get the new tranche fully funded, and the extra monies retained in the project allow for a better chance of success (and therefore full repayment for all lenders)? For this loan specifically, consider a scenario where we fast forward a few weeks/months, some of the long-promised repayments in other loans have finally been recovered, perhaps with better overall outcomes than some lenders are currently fearing, causing both a surplus in cash and also increased lender confidence, but in the meantime Lendy cut back the pipeline having seen the current market conditions, so there's a dearth of new loans. The existence of 13% rates would be known, but they'd be very rarely seen on the marketplace, and subsequent tranches could be launched at 12% and merged with the "main" loan without any issues achieving full funding. It would become much more obvious that Lendy were pricing to liquidity rather than to risk, but it's hardly impossible, and I do not think it creates any problems that are not already present (some loans almost impossible to sell when there's a shortage of lender cash, other loans almost impossible to buy when there's plenty of lender cash in the system).
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sl75
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Post by sl75 on Mar 16, 2018 13:52:12 GMT
Agree with above concerns about pari passu tranches at different rates. Anyone want to buy my original, mint condition DFL010 ? Right now, when there's plenty of T6 and T7 available, probably not... but that's the point - Lendy need to get the new tranches funded so that the development can continue. If they keep the rate difference going forwards, and the loan parts generated from T6 and T7 remain the only ones with a coupon higher than 12% on the platform, they may well become as rare as hens teeth in future, making your original, mint condition DFL010 no better or worse than any other 12% loan part on the platform (all else being equal), but you'd need to wait for them to sell first before 12% becomes the most attractive option immediately available. Alternatively, if they raise the coupon on the entire loan to 13%, then your original mint condition DFL010 will be indistinguishable from any other loan part, but at the point of merging the loans, the unsold portion of the new tranches takes priority over your second-hand loan part (unless that rule changed when I wasn't paying attention), so you still need to wait for them to sell first. I am also unclear about the timing of these tranches with T6 and T7 only two weeks apart (there may have been some delays here that I have not followed closely enough). Perhaps T6 and T7 were to fund discrete items/phases of the project, or maybe there was a concern about asking for 700k in a single tranche. ... or indeed maybe Lendy still think they can trick inattentive lenders with auto pre-fund enabled into lending many times their intended amount in a single loan just by dividing it down into tranches. That trick might have worked well the first few times they used it, but I think they've over-used that tactic now, and it's been to the long-term detriment of the platform - the lenders who find themselves over-exposed due to using the "automatic" option would seem at least as likely to leave completely as to start manually selecting their pre-funding on all future loans.
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MONEY
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Post by MONEY on Mar 22, 2018 20:46:03 GMT
T7's loan value has been revised:- 22nd March 2018:  12th March 2018:  |
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orvilorvil
Member of DD Central
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Post by orvilorvil on Oct 17, 2018 20:15:30 GMT
This means very little to me as I’m not invested but for those that are this may be useful....
If you Google search Lendy and check the reviews you’ll find some photos from the last WAT review approx 5 days ago.
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