tarq
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Post by tarq on Jan 6, 2017 10:21:30 GMT
Maybe I'm being cynical, but there seems to me to be a pattern with the P2P platforms.
The older ones have less interest & it's more difficult/impossible to sell loans on SM.
The newer ones have good interest, but almost impossible to buy unless glued to the screen all day.
Then the medium termers, where the rates are dropping off, and it's becoming harder to sell.
Is this what happens, they start very good, then the medium good and long term poor?
There seem to me to be a slow down of new loans, or they sit for ever waiting to 'go live'.
Or am I imagining it.
So what's the next good one?
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Post by jackpease on Jan 6, 2017 13:16:26 GMT
Well 'new' firms have the massive advantage that loans generally haven't had a chance to go bad giving the illusion of good returns and low risk lending. I think the honeymoon period is quite long eg my heady days with FK/Rebs/Assets lasted over a year before the defaults started rolling in and returns more realistic. Property based platforms offering stellar percentages have yet to be tested by a property crash Jack P
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stevio
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Post by stevio on Jan 6, 2017 19:18:30 GMT
Well 'new' firms have the massive advantage that loans generally haven't had a chance to go bad giving the illusion of good returns and low risk lending. I think the honeymoon period is quite long eg my heady days with FK/Rebs/Assets lasted over a year before the defaults started rolling in and returns more realistic. Property based platforms offering stellar percentages have yet to be tested by a property crash Jack P This and newer platforms generally won't attract attention unless they have - equal to or better than the 12% average - access to a new asset class However, once they have attracted enough lenders to fill their current loans, their only way of growing their borrower base in a competitive market is to cut rates, which if they take the hit then they will have a continual decline in profits till they collapse, so their lenders take the hit, till they reach a trade off between a begrudging rate for a half decent loan!
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Greenwood2
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Post by Greenwood2 on Jan 7, 2017 14:06:42 GMT
So what's the next good one? Presumably the one that: ● has the right liquidity on its' SM to suit your requirements; ● has loans with interest rates that are attractive to you; and ● has loans that are available at a time convenient to you Sorry, don't mean to be flippant, but that's a lot of unknowns against which you are hoping for 'thoughts'. Cheers, Ian.. And presumably one which will have low default rates, or at least default rates acceptable to you. Crystal ball time.
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shimself
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Post by shimself on Jan 7, 2017 19:32:39 GMT
and newer platforms generally won't attract attention unless they have - equal to or better than the 12% average - access to a new asset class However, once they have attracted enough lenders to fill their current loans, their only way of growing their borrower base in a competitive market is to cut rates, which if they take the hit then they will have a continual decline in profits till they collapse, so their lenders take the hit, till they reach a trade off between a begrudging rate for a half decent loan! I think that might be true here, but here doesn't represent the entire lender community. Here has 2k-odd people (I think), Assetz alone has 16K
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stevio
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Post by stevio on Jan 7, 2017 19:44:38 GMT
and newer platforms generally won't attract attention unless they have - equal to or better than the 12% average - access to a new asset class However, once they have attracted enough lenders to fill their current loans, their only way of growing their borrower base in a competitive market is to cut rates, which if they take the hit then they will have a continual decline in profits till they collapse, so their lenders take the hit, till they reach a trade off between a begrudging rate for a half decent loan! I think that might be true here, but here doesn't represent the entire lender community. Here has 2k-odd people (I think), Assetz alone has 16K Your example of Assetz did exactly this though, high rates in the early term which eventually led to a slow down in loans as they couldn't find enough borrowers, then a decline in rates and increase in loan volume, as the only way to continue to grow their platform
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adrianc
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Post by adrianc on Jan 8, 2017 8:23:18 GMT
Maybe I'm being cynical, but there seems to me to be a pattern with the P2P platforms. The older ones have less interest & it's more difficult/impossible to sell loans on SM. The newer ones have good interest, but almost impossible to buy unless glued to the screen all day. Then the medium termers, where the rates are dropping off, and it's becoming harder to sell. Is this what happens, they start very good, then the medium good and long term poor? I think it's simpler than that. P2P is becoming much more mainstream, and investor demand is ramping rapidly. That new demand is from people who are going for the "big name" platforms for their first exposure. As a result, those platforms are suffering from an imbalance of demand and supply, until such time as they can get the borrower demand to match. (RS, SS) Meanwhile, there are various platforms which are coming to the end of the initial honeymoon period, where those more experienced investors who dipped their toes are reviewing their experience and deciding not to bother continuing. (LC)
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