twoheads
Member of DD Central
Programming
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Post by twoheads on Jul 6, 2017 18:14:11 GMT
And now they've put tranche 10 in the pipeline, for almost exactly the amount that tranche 9 was short funded (£183k)
Let's see how this one flies.
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guff
Posts: 730
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Post by guff on Jul 6, 2017 18:47:21 GMT
This IS getting interesting. Piles of default loans, poor updates, many promises of purchasers being found for defaulted loans, flippant replies to questions from investors (or flippant and inadequate replies), apparent lack of prefunding even for 'prestige' loans, a bloated and largely moribund SM (as far as we can tell) and many more DFL tranches to come. Can someone in Lendy Towers cut through the damaging speculation and tell us exactly how they intend to prioritise and address the key issues to get this show back on the road? Publishing IMS reports should be high on their list.
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GeorgeT
Member of DD Central
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Post by GeorgeT on Jul 6, 2017 19:51:12 GMT
This IS getting interesting. Piles of default loans, poor updates, many promises of purchasers being found for defaulted loans, flippant replies to questions from investors (or flippant and inadequate replies), apparent lack of prefunding even for 'prestige' loans, a bloated and largely moribund SM (as far as we can tell) and many more DFL tranches to come. Can someone in Lendy Towers cut through the damaging speculation and tell us exactly how they intend to prioritise and address the key issues to get this show back on the road? I think describing the SM as 'moribund' is an exaggeration. But I would agree it needs some medicine. High class loan parts (Defined by a combination of Remaining term; Size of loan and Interest Rate) continue to sell very fast. Loan parts in decent loans (but not high class) do sell, albeit at a slow pace. Dross sticks to the SM like glue. Investors who haven't been proactive enough in terms of the management and constant modernisation of their loanbooks are indeed suffering from reduced liquidity. Likewise with investors who accepted 7/8/9% rates which were not commensurate with the risk to their money. So it could be argued the fault lies partly with investors as well as LY. On a basic level, nobody should be investing money in P2P loans that they cannot afford to lose. Losses are inevitable over time. In addition, people should not really invest willy nilly without having informed regard to the risk they are taking, i.e. does the individual proposal/security value/exit plan etc. all seem realistic. However, I would, now, welcome some measures to oil the movement of the SM - and that may come soon in the form of being able to offer loan parts for sale at premia (for high class loans) and discounts for duff loans parts. But if such a system is introduced (as I believe it will be), the canniest investors will stand to gain more at the expense of the least tactically aware investors, who will only be able to sell at discount prices and thereby negate their interest gains. There will be a two tier SM - one like Poundland, the other like Harrods. It will place an even higher importance on having an up to date, and effective investment strategy, and could lead to even more people selling out early as once a loan reaches X remaining days a discount will cut in and be ever increasing as the loan matures. So such a system could add value to high class loan parts and reduce further the value of dross loan parts. There would be winners and losers.
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mary
Member of DD Central
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Post by mary on Jul 6, 2017 20:23:41 GMT
I think describing the SM as 'moribund' is an exaggeration. But I would agree it needs some medicine. High class loan parts (Defined by a combination of Remaining term; Size of loan and Interest Rate) continue to sell very fast. Loan parts in decent loans (but not high class) do sell, albeit at a slow pace. Dross sticks to the SM like glue. Investors who haven't been proactive enough in terms of the management and constant modernisation of their loanbooks are indeed suffering from reduced liquidity. Likewise with investors who accepted 7/8/9% rates which were not commensurate with the risk to their money. So it could be argued the fault lies partly with investors as well as LY. On a basic level, nobody should be investing money in P2P loans that they cannot afford to lose. Losses are inevitable over time. In addition, people should not really invest willy nilly without having informed regard to the risk they are taking, i.e. does the individual proposal/security value/exit plan etc. all seem realistic. However, I would, now, welcome some measures to oil the movement of the SM - and that may come soon in the form of being able to offer loan parts for sale at premia (for high class loans) and discounts for duff loans parts. But if such a system is introduced (as I believe it will be), the canniest investors will stand to gain more at the expense of the least tactically aware investors, who will only be able to sell at discount prices and thereby negate their interest gains. There will be a two tier SM - one like Poundland, the other like Harrods. It will place an even higher importance on having an up to date, and effective investment strategy, and could lead to even more people selling out early as once a loan reaches X remaining days a discount will cut in and be ever increasing as the loan matures. So such a system could add value to high class loan parts and reduce further the value of dross loan parts. There would be winners and losers. No. While I appreciate that this would help you as a trader, the simplicity of trading at par is a huge benefit of this platform. Go elsewhere if you wish to exploit the less well informed, those platforms exist, as I'm sure you are aware. I do use the the SM when it is useful to me, currently it is not and I am happy to hold those loans I have. If a discount/premium capability is introduced I'm off as I'm not a trader, just trying to make a buck based on knowledge and DD, not off of the less able or time challenged who would be exploited in such a scenario. I do appreciate your posts as often they are relevant, but let's not mess with what has, to this point,been successful for us all, a few decent sized repayments will likely sold the liquidity issue, and if they can solve several of the defaults as well I'm sure you'll be as happy as me!
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GeorgeT
Member of DD Central
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Post by GeorgeT on Jul 6, 2017 20:40:17 GMT
I don't wish to exploit anybody, I have campaigned all my life for equality and against exploitation and discrimination on any ground.
But introducing such a system would aid those who currently need access to their money and can't get it. There may well be people who have got money stuck in loans that they would like to withdraw or had intended to withdraw and now it is causing them worry and some financial difficulty. If by being able to offer those loan parts for sale at say a 5% discount it enabled them to get their money back then I see that would be a benefit to those people as well? I am sure there are some investors who would happily buy into some loans if they could buy into them at a discount because they would consider that counterbalanced the risk. I could be wrong however.
The alternative would seem to be a secondary market that in a few months doesn't work for anybody.
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GeorgeT
Member of DD Central
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Post by GeorgeT on Jul 6, 2017 20:55:50 GMT
You raise some very important points indeed.
I know which platform you are writing about and I was one of the people who was able to exit it without severe harm by being able to sell my loan parts at a 5% discount. The result was that all my funds left that platform.
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Post by GSV3MIaC on Jul 6, 2017 21:17:00 GMT
The issue of 'exploitation' only really arises when there is the possibility to buy 'way more than your fair share' (however defined) and then sell it on at a mark-up .. ticket touting, in other words (see Fleeting Customer for prime example). Folks who would like to have bought (at par) didn't get the chance, and should have done (IMO). This has always happened on FC, and sometimes happens to a smaller extent on ABL (and FS?)'
If there is a limit on purchases, and you choose to sell your allotment (even at a profit), fine .. nobody is forced to buy it. If you choose to sell at a discount, for sure nobody has real cause to gripe ... you lost money on the deal, but that was your choice. I don't have any Ly loans at the moment I would like to sell at a discount, but then I always advocated regarding the SM as untrustworthy as an exit mechanism. Got some I'd sell at par, or a small markup, but I doubt anyone would be desperate enough to buy them this week (next month? .. maybe .. guess that makes me a demand-smoother, aka underwriter).
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fp
Posts: 1,008
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Post by fp on Jul 8, 2017 13:48:06 GMT
This has to be one of the best loans on the platform, currently showing in the pipeline as 6% LTV  |
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Post by p2plender on Jul 8, 2017 13:57:55 GMT
As I don't tend to follow this forum that much, some of these secret 'codes' and 'abbreviations' leave me lost!
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fp
Posts: 1,008
Likes: 853
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Post by fp on Jul 8, 2017 14:13:36 GMT
This has to be one of the best loans on the platform, currently showing in the pipeline as 6% LTV But not where it matters  (I DM'd Paul / Lendy Support late last night when I noticed it on updating the tracker.) Ah, but it does matter, any unsuspecting investor looking at that is going to be thinking "whats not to like, 12% for a 6% LTV loan, I can see the advert now... "Purchased loans on L**** pipeline showing an ultra low LTV, yet went on to only recover part of your investment when the loan defaulted? You may have been mis-sold, contact us now to see if you are due compensation, no win, no fee" 
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guff
Posts: 730
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Post by guff on Jul 8, 2017 14:16:36 GMT
This has to be one of the best loans on the platform, currently showing in the pipeline as 6% LTV Probably another 'clerical error' like the wrong rate on DFL021.
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Post by d_saver on Jul 11, 2017 8:35:30 GMT
This tranche just went live and filled too. Allocations perhaps a bit below what I think most may be expecting. Might impact the SM a bit (again)
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Post by wonder on Jul 12, 2017 11:38:13 GMT
What's the general view, Oh Wise Ones?
Is DFL012 worth holding until it pays, or is there likely to be a default with this one?
In other words, "Should I stay or should I go now?"
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Post by gaspilot on Jul 12, 2017 11:59:27 GMT
What's the general view, Oh Wise Ones? Is DFL012 worth holding until it pays, or is there likely to be a default with this one? In other words, "Should I stay or should I go now?" There's currently £856K on the secondary market so you may have no choice in the matter sadly.
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Post by wonder on Jul 12, 2017 12:14:46 GMT
What's the general view, Oh Wise Ones? Is DFL012 worth holding until it pays, or is there likely to be a default with this one? In other words, "Should I stay or should I go now?" There's currently £856K on the secondary market so you may have no choice in the matter sadly. Yes. My loan parts are already on the sales queue. I am just trying to decide whether to leave them there, or cancel the sales, and ride it out.
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