Liz
Member of DD Central
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Post by Liz on Dec 14, 2016 20:06:39 GMT
With most loans now likely to be below 11% and probably falling, now I'm left torn on what to do. Accept 11% Just invest in the large 12% loans, but with less diversity. Move money to other platforms like TC and FS that I use. Look for new P2P platforms, plenty are popping up. Pull money out of P2P; into maybe stocks or somewhere else. Buy a bigger home and sell the lot  Decisions, decisions, decisions. |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Dec 14, 2016 21:08:41 GMT
With most loans now likely to be below 11% and probably falling, now I'm left torn on what to do. Accept 11% Just invest in the large 12% loans, but with less diversity. Move money to other platforms like TC and FS that I use. Look for new P2P platforms, plenty are popping up. Pull money out of P2P; into maybe stocks or somewhere else. Buy a bigger home and sell the lot Decisions, decisions, decisions. I'm going to (and I am currently) diversify elsewhere - MT, FS & others (keeping an eye on Bridgecrowd & Collateral). I don't mind lower rates, but with the current lot, it doesn't feel like SS are offering the lower % bands against lower risk, instead, they seem to be going for the 'supply and demand' route.
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Post by queenvictoria on Dec 15, 2016 9:53:23 GMT
Liz.
Only you can decide of course.
For me I like to be diversified across property (equity in own home and some buy-to-lets that I've had for a while), stocks and shares (in pensions and ISAs) and P2P (cash - would like to shelter in IFISA when enough of a choice is available). I reckon my P2P currently makes up c.10% of my net worth. Of that, I hold around 50% in SS and the rest is spread around (mostly using MT and more recently Twino but have small amounts in others too and also some in House Crowd and Property Moose).
I like SS because it has proved to be so liquid although I know there is no guarantee of that. What I don't like about SS is the irregularity and style of communications - I really wish they would improve that and dont really understand why they don't. Ed at MT is so much better at that but investing in new loans at MT means being on hand with quick fingers at 4pm on certain days which is not usually possible for me. I know I'm overweight in SS but I do think its the best around at the moment (do look at TWINO though which I am 3 months into and going very nicely).
Once there is a decent choice of IFISAs I'll rebalance and may well bring some more money out of shares into P2P.
What about you?
HRH Queen Vic.
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seeingred
Member of DD Central
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Post by seeingred on Dec 15, 2016 12:00:36 GMT
I have longstanding positions on Z and FC = unexciting but stable for the most part. Most of the FC property loans are developments aimed at producing dwellings rather than commercial buildings, and that feels more comfortable as a market sector in any downturn. Not concerned by if they run late so long as interest continues to be paid.
I took a large position in SS during October, spending literally days fighting on the SM. Lack of clarity and other issues surrounding updates have left me feeling uneasy about the SS platform. I'm less interested in % rates than in security and honesty of the management concerning exactly what we are investing in and to what calibre of borrower.
I have been particularly concerned by overoptimistic valuations - these matter most when the chips are down, so what is a half finished commercial or leisure project really worth on a quick sale and in an overall economic downturn?
Outright fraud has been a huge issue in Chinese P2P, hopefully it is contained in the UK.
Tempted by Bridgecrowd but they have been promising pipeline loans for some time. Promises, promises.
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Post by mrclondon on Dec 17, 2016 12:29:32 GMT
Outright fraud has been a huge issue in Chinese P2P, hopefully it is contained in the UK. Almost every UK platform that has been around for a few years has seen a case of fraudulent borrowers, and a total loss is the most likely outcome, although its worth noting that FC tend to make a goodwill payment of the capital value once fraud is proven in court. Phones (on AC), jeans (on FC), printer (on FK), finance (on TC) are examples of either proven or alleged fraud by borrowers. There are almost certainly a few others at FC and TC. It is inevitable, and has to be accepted as such. No amount of due dilligence will spot them, diversification is the only protection. I'm not aware of any such cases on SS, FS or MT but it is only a matter of time.
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Post by GSV3MIaC on Dec 17, 2016 14:32:13 GMT
/mod hat off
I think you missed shipping containers on ABLrate!!
MT (so far) has the advantage of dealing with relatively few (repeat) borrowers, who they probably know better than FC know any of theirs, but the downside of that is obvious too. SS has rather more, including some I'd put in the 'worrying' category, based on previous press coverage.
I agree it is likely inevitable, but that's no reason to take it lying down when it happens .. getting vigorous with the ones you catch may encourage les autres. Over at FC there is a loan to a borrower (24435) who 'has become unresponsive' after one (late) payment out of 6 .. now this borrower turns out to be FCA approved for selling heating boilers on tick, and still appears to have a functioning business, website, facebook page, etc. I'd be after them rather more firmly than FC seem to be! How does it go? .. 'You get what you put up with'.
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seeingred
Member of DD Central
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Post by seeingred on Dec 18, 2016 22:45:32 GMT
"Outright fraud has been a huge issue in Chinese P2P, hopefully it is contained in the UK."
The article was centred more on platforms that were wholly fraudulent, rather than individual borrowers. No doubt both were and are common even today.
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Post by jakebullet on Dec 20, 2016 12:21:12 GMT
I remember there was a car on FS where the borrower made no attempt to redeem, and when FS went to sell it found it had 'issues' that where previously not spotted. FS made up the balance out of their own pocket.
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Post by andrewholgate on Dec 20, 2016 13:01:19 GMT
Outright fraud has been a huge issue in Chinese P2P, hopefully it is contained in the UK. Almost every UK platform that has been around for a few years has seen a case of fraudulent borrowers, and a total loss is the most likely outcome, although its worth noting that FC tend to make a goodwill payment of the capital value once fraud is proven in court. Phones (on AC), jeans (on FC), printer (on FK), finance (on TC) are examples of either proven or alleged fraud by borrowers. There are almost certainly a few others at FC and TC. It is inevitable, and has to be accepted as such. No amount of due dilligence will spot them, diversification is the only protection. I'm not aware of any such cases on SS, FS or MT but it is only a matter of time. <ouch> I need to add, that isn't proven in court and we continue to work through to a solution.
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