n
Member of DD Central
Yet another Nick
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Post by n on Dec 13, 2016 12:44:31 GMT
Maybe all the money Zopa won't take is coming this way.
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alender
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Post by alender on Dec 13, 2016 15:58:13 GMT
This was probably due to RS doing their usual thing of chasing rates down by low offers and use of the Lend now feature which has been discussed many times.
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ashtondav
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Post by ashtondav on Dec 13, 2016 16:16:52 GMT
It's simple supply and demand. December is a VERY low month for borrower demand. Unfortunatley the number of people looking for rates above zero remains constant and in fact has probably increased now ZOPA has shut its doors. The result? p*ss poor rates for lenders and a bonanza for borrowers. This is no bad thing (long term) as it raises the profile of RS to borrowers.
January, a month of VERY high borrower demand, will be a better indicator. I'm looking for late january rates of 5% to 6%. If not its back to ZOPA+ (hopefully) or Fundingsecure which at least has asset backed borrowers, and seems to be working for me.
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Post by newlender on Dec 13, 2016 17:23:35 GMT
The problem is that inflation is forecast to rise next year to about 2.5%. A headline a rate of 6% before tax will give you £60 on every £1K. That's £48 after tax. Factor in the 2.5% inflation and that's worth only £46.80 at today's money. The question will therefore be whether or not I'll be prepared to risk £1K on an unprotected platform to earn £46.80. An ISA wrapper would make an enormous difference of course. With 5yr. rates as they are today the figures certainly don't make the risk worthwhile and even if they rise slightly in January I doubt if we'll see 6% again for quite a while. Most of my 5yr. loans are 5.8% and above and I'm not going to touch the market at much lower than that - potential inflation really is the biggest factor by far, I feel.
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Post by BrianC on Dec 13, 2016 21:21:24 GMT
Don't really get why you include inflation in that calculation. Yes it's important but saying it reduces your return is irrelevant as your money is still eroded wether you invest or not so 6% offset by 2.5% inflation is stil better than 0% reduced by inflation. I'm like you tho in that I won't take less than 5.8% over 5 years right now.
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jonah
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Post by jonah on Dec 13, 2016 21:38:18 GMT
<blatant linkage> I agree about rates.... and with 5yr being less than 1 year earlier today, I don't expect to be doing anything but reducing my RS average loan term for the next months nth or so. That said, p2pindependentforum.com/post/157158/thread does at least show when which rates have been where. </end linkage>
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alender
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Post by alender on Dec 13, 2016 23:29:06 GMT
Don't really get why you include inflation in that calculation. Yes it's important but saying it reduces your return is irrelevant as your money is still eroded wether you invest or not so 6% offset by 2.5% inflation is stil better than 0% reduced by inflation. I'm like you tho in that I won't take less than 5.8% over 5 years right now. I guess inflation comes into play when you are considering P2P against investing in other assets like property, shares, gold etc. but with or without inflation for me current rates at RS are too low to reflect the risk so I have been moving into equities and other P2P. Also the information coming from the finance community is rates will probably rise due to the likely polices of Donald Trump, this can been seen by the expectation of a FED rise in December and increasing bond yields, so I am keeping new investments in P2P short term.
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pikestaff
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Post by pikestaff on Dec 14, 2016 9:54:53 GMT
I use the RS 5 year market both for myself and for my mum (who takes the interest monthly as income). I currently have my (and her) lending rate set at 5%, which is the same as I was getting when I started in mid 2013. I am just about content at that rate, although I think RS is more risky today because (1) it is no longer purely a consumer lending platform, and (2) the removal of the "cliff edge" from the PF will reduce management's incentive to be prudent.
However, I am not adding. My mum just asked me to manage some more money for her, and that will be going to AC's QAA as a diversification.
As for my own portfolio, I am reluctant to increase my equity exposure at current prices, and I continue to be bearish on property, which I think is very exposed to rising interest rates and/or the Brexit hit when it comes. I am still lending on property, but only when the LTV and valuation basis are sufficiently conservative. Most of my free cash at present is going to TC and (where I can get it invested) AC. I am also using Downing Crowdfunding, which I perceive as relatively low risk, but its deal flow to date has been modest.
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oldgrumpy
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Post by oldgrumpy on Dec 22, 2016 20:39:36 GMT
Off-chance of 5.4% tonight - maybe.
There's a £100K+ borrower offer festering at 4.5% at the moment. If RS do a clearout/sweep up later it may even stretch into the 5.5% lender region, so if I were still investing in 5yr I would be trying for 5.4% for the next 24 hours or so.
It may come to nothing - nothing ventured, nothing gained, and people have been scooping up at 4%+ for quite a while.
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pom
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Post by pom on Dec 23, 2016 11:31:41 GMT
Off-chance of 5.4% tonight - maybe.
There's a £100K+ borrower offer festering at 4.5% at the moment. If RS do a clearout/sweep up later it may even stretch into the 5.5% lender region, so if I were still investing in 5yr I would be trying for 5.4% for the next 24 hours or so. It may come to nothing - nothing ventured, nothing gained, and people have been scooping up at 4%+ for quite a while. My 5.4 tenner went before 6pm, but not my 5.5
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oldgrumpy
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Post by oldgrumpy on Dec 23, 2016 13:56:36 GMT
Off-chance of 5.4% tonight - maybe.
There's a £100K+ borrower offer festering at 4.5% at the moment. If RS do a clearout/sweep up later it may even stretch into the 5.5% lender region, so if I were still investing in 5yr I would be trying for 5.4% for the next 24 hours or so. It may come to nothing - nothing ventured, nothing gained, and people have been scooping up at 4%+ for quite a while. My 5.4 tenner went before 6pm, but not my 5.5 Result!! You would have needed to be at the front of the 5.5% Q to sneak in, methinks.
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upland
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Post by upland on Dec 28, 2016 10:49:53 GMT
5 year income is 3.8% now. What does one say ?
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Post by GSV3MIaC on Dec 28, 2016 11:42:45 GMT
5 year income is 3.8% now. What does one say ? /mod hat off "No, thank you" would be only polite. 8>.
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adrianc
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Post by adrianc on Dec 28, 2016 11:45:35 GMT
5 year income is 3.8% now. What does one say ? One simply yawns gently.
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jcb208
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Post by jcb208 on Dec 28, 2016 11:46:34 GMT
Given up with Ratesetter now,I am averaging 6.2% on the 5 year market and been investing for 3 years, but due to the poor rates have set repayments to go to holding account and withdrawing every 2 days
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