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Post by khampson on Dec 28, 2016 18:43:27 GMT
On been away for a few months, I have been looking at the loans coming through FC and the B,C,D and E loans don't seem to be coming on to the market, what's happened to them, surely they have not been kidnapped or gone to other platforms? All I seem to see are A and A+ loans, struggling to justify placing money in unsecured loans at these current rates.
Thanks in advance
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Post by Butch Cassidy on Dec 28, 2016 18:57:18 GMT
On been away for a few months, I have been looking at the loans coming through FC and the B,C,D and E loans don't seem to be coming on to the market, what's happened to them, surely they have not been kidnapped or gone to other platforms? All I seem to see are A and A+ loans, struggling to justify placing money in unsecured loans at these current rates. Thanks in advance You have partially answered your own question; most B & C loans & some D & even E loans are now being listed under A+ & A grades, the remaining D & E loans, many of which are really F, G & H grades are now absorbed by bots within a couple of minutes or less of being listed - you can see them listed on the SM at a premium just a couple of minutes later.
I still have a decent sized portfolio with FC but other than a couple of existing borrowers who have had replacement loans, usually at lower grades, I no longer buy anything via PM & have to reinvest via SM or transfer funds elsewhere.
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Post by khampson on Dec 28, 2016 19:14:57 GMT
Thank you for the response, and for this reason, I'm out - my money deserves a loving home on a platform that respects it with equal opportunities
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bg
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Post by bg on Dec 28, 2016 19:25:44 GMT
On been away for a few months, I have been looking at the loans coming through FC and the B,C,D and E loans don't seem to be coming on to the market, what's happened to them, surely they have not been kidnapped or gone to other platforms? All I seem to see are A and A+ loans, struggling to justify placing money in unsecured loans at these current rates. Thanks in advance You choose a silly time to look. Due to the holidays there hasn't been a new loan for a number of days. All that is left is the lower rate/larger size loans. If you had looked a week ago there would have been 60+ available loans as opposed to the 8 currently available. As for equal opportunities - it is equal for all retail investors. Some choose to sit by their keyboard refreshing regularly for the higher rate loans. Some use browser extensions to alert them when new loans post. Others write bots to bid on their behalf. All three options are open to yourself. Many other platforms also have demand outstripping supply (try AC, MT or SS for starters).
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Post by khampson on Dec 28, 2016 21:17:32 GMT
Would auto bid give me access to the B, C, D and E loans or do bots get there before this? I appreciate it's a bad time, I was looking leading up to Christmas and still seemed lots of A and A+ only, do FC announce when a loan is going live or is there a particular time each day that loans are released? I would hate the thought of constantly refreshing just to try and catch a loan
Thanks
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fasty
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Post by fasty on Dec 28, 2016 21:24:46 GMT
Would auto bid give me access to the B, C, D and E loans or do bots get there before this? I appreciate it's a bad time, I was looking leading up to Christmas and still seemed lots of A and A+ only, do FC announce when a loan is going live or is there a particular time each day that loans are released? I would hate the thought of constantly refreshing just to try and catch a loan Thanks In my opinion, probably not. I tried it in the early days with zero luck. It seems that the autobid cycle time is far too slow unless you happen to get very lucky. If an E loan comes up these days the web site often grinds to a standstill due to the bot overload. I've missed getting any bids in on an E even though I caught the first few seconds of it being live. I am not aware of any way to predict when they will appear these days.
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r00lish67
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Post by r00lish67 on Dec 29, 2016 9:19:56 GMT
I don't have a bot, but occasionally have managed to get hold of a D or E (more often a D) recently with the general tactic of holding for just under one month and selling for a small premium.
But, even holding for this pathetic amount of time has not been worth it as these loans are just so terrible that they can go pop even before 1 payment is made or shortly after the 1st. There's no way I'd try to hold any of these long term personally.
Re: B's and C's, you'd hope they'd be a modicum better than D/E's, but probing into a few A+'s recently has made me generally wonder why they're not D/E's!
All in all, it's yucky and you're better off out of it.
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kaya
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Post by kaya on Dec 29, 2016 10:38:42 GMT
I would hate the thought of constantly refreshing just to try and catch a loan We soon realize that there are better ways to spend our time...like selling & putting it elsewhere, for example
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voss
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Post by voss on Dec 29, 2016 11:23:03 GMT
But, even holding for this pathetic amount of time has not been worth it as these loans are just so terrible that they can go pop even before 1 payment is made or shortly after the 1st. That sounds off-putting. Is there an example of a D or an E going pop (do you mean RBR?) before first payment?
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fasty
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Post by fasty on Dec 29, 2016 11:32:59 GMT
I recently had "D" loan 27521 RBR'ed after 1 payment.
I have had loans in the past that made no payments (zilch!) but IIRC FC reimbursed those after much lender fuss.
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r00lish67
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Post by r00lish67 on Dec 29, 2016 11:33:36 GMT
The 'before 1st payment' example I was thinking of from another thread was actually a B - 25731. After 1 payment, 25831 and 24435. I've also had 27521 go RBR with a large CCJ after 1 payment in the last few days.
Admittedly, the loans failing before the first payment are probably very few and far between.
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Post by GSV3MIaC on Dec 29, 2016 12:00:16 GMT
/mod hat off
True, but when E's are rolling out (to partial loan buyers) at one or two a week, the %age of those loans going /*oops*/ in the first 60 days IS alarmingly high. But then, Free Credit have to try to hit their estimated loss rate, which they have not quite achieved yet (they also need to distinguish D/Es from those A+s, which also go pop quite often.)
Run the stats on the loan book (as many have) and it is clearly the case that there has been 'grade inflation', and today's A+s are frequently last year's Cs by any reasonable comparison basis. More digging is impossible since we no longer get useful details of the borrower, the purpose of the loan, etc. As someone said upstream / outthread / whereever, there really are better options.
So in answer to the OP .. Bs and lower are endangered species, rapidly headed unicorn-wards, which is fine for FC since they'd rather lend your money out at 6.5% anyway.
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dorset
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Post by dorset on Dec 29, 2016 13:04:30 GMT
I would hate the thought of constantly refreshing just to try and catch a loan We soon realize that there are better ways to spend our time...like selling & putting it elsewhere, for example Have had to take a couple of thousand out of FC over the last two of weeks. There have been plenty of loans available but the risk banding has now become a joke. The rates on short term A+ (old Bs and Cs) do not remotely compensate for the risk.
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lenbo
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Post by lenbo on Dec 30, 2016 15:37:58 GMT
On been away for a few months, I have been looking at the loans coming through FC and the B,C,D and E loans don't seem to be coming on to the market, what's happened to them, surely they have not been kidnapped or gone to other platforms? All I seem to see are A and A+ loans, struggling to justify placing money in unsecured loans at these current rates. Thanks in advance You choose a silly time to look. Due to the holidays there hasn't been a new loan for a number of days. All that is left is the lower rate/larger size loans. If you had looked a week ago there would have been 60+ available loans as opposed to the 8 currently available. As for equal opportunities - it is equal for all retail investors. Some choose to sit by their keyboard refreshing regularly for the higher rate loans. Some use browser extensions to alert them when new loans post. Others write bots to bid on their behalf. All three options are open to yourself. Many other platforms also have demand outstripping supply (try AC, MT or SS for starters).
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lenbo
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Post by lenbo on Dec 30, 2016 15:48:34 GMT
Hi I am new to this forum so please excuse me if I am repeating well known facts.
I have been with FC since June 2011 and like yourselves I am becoming concerned about the reduced number of loans on the higher risk levels.
I decided to do a little research using the data available by downloading the loanbook.
The conclusion I have reached is that in recent times most of the loans (90%+) in the C/D/E range are for the Closed Market (CM) i.e. To sole purchasers. Just occasionally there are some loans in these risk levels but they do go very quickly - blink and you would miss them. It has been hinted on FC forum that the loans that are rejected on the CM are then offered to the Open Market (OM). I am unable to verify this fact.
Note: As loans on the OM are quite scarce they go very quickly - especially the smaller loans. bots seem to be a big issue with FC and maybe rightly so.
With all best wishes to Yah All for 2017 LenBo
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