blender
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Post by blender on Jan 16, 2017 23:56:14 GMT
A parting Limerick in appreciation, with acknowledgement to GSV terminology:-
Thank F*C* for Autobid There was an old Autobidity who complained to FC with lividity, "It's just buying me chod!" "Well you silly old sod," said FC "you're just here for liquidity."
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acky
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Post by acky on Jan 17, 2017 10:06:13 GMT
Can't say I'm happy with FC, perhaps "content" would be the word. I've got as much invested there as ever, so I suppose I can't be UNhappy. Of course there are better returns (with probably no more risk) elsewhere, but I can't get enough diversification on other platforms, so need FC to provide that, and with an overall 10% XIRR, that's ok. Most of my money is in property loans - if they give me 8% more than I can get from the bank, with very little risk, then that can't be bad. I take C's and D's for very short term hold, just to keep the adrenaline going. Had a recent flirtation with Autobodge, out of curiosity, just to see how awful it was - it was AWFUL!
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bigfoot12
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Post by bigfoot12 on Jan 17, 2017 11:18:34 GMT
I'm drifting away. I'm currently net selling about 5% per week. But I'm exiting FS, RS and SS (alphabetical order) faster than that, and my AC and Zopa holdings are less than 20% of their peak. In general I can't buy enough of the loans I want to make it worthwhile reading all the details. If any of these gets full authorisation I might reconsider.
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jo
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dead
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Post by jo on Jan 17, 2017 16:32:00 GMT
I'm agnostic re FC - having only invested in prop loans for the past 2 years ish.
However, I don't like having too many eggs in the few other platforms I trust; therefore, I remain.
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markr
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Post by markr on Jan 17, 2017 17:47:36 GMT
It's definitely not as much fun as the bidding and cashback flipping days, but I'm still happy and have increased my investment steadily. Almost all property loans these days, mostly sold before term.
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Post by Harland Kearney on Jan 18, 2017 2:36:47 GMT
I've sold about 95 percent of my holding in FC and shipped it over to SS. There is too much risk on Funding Circle's SME loans currently (with the ever lowering rates...) for me to justify leaving a large amount capital. My only holding's our high paying C loans, D's and E's (some of which are as high as 21.9 percent). I am not interested in borrowing my money at 6.5 percent to borrowers, I could just use ZOPA for that. (its automated too!)
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bigfoot12
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Post by bigfoot12 on Jan 18, 2017 7:35:23 GMT
If other platforms (see FS) are offering you now 13% more than you can get from the bank and 5% more than you can get from FC and with similar property developments then I don't see why you should be happy with FC... Diversification? I used to be very happy with RS when it paid a little over 6% (for 5 years) even though I was earning over 11% with FC!
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blender
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Post by blender on Jan 18, 2017 9:14:08 GMT
That 1% fee gets heavy on the low rates. I buy only property at 10% (ie 9%), A+ or A, and sell before being locked in. Liquidity is still fine at par, because there seem to be bulk buyers even with just over a month to run. Would be happier with an IFISA available.
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registerme
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Post by registerme on Jan 18, 2017 9:27:35 GMT
I can see the point to the last change of rates - if the predicted default rates were correct the risk premium for participating in the riskier loans was negligible, so stretching the rates so that there's a higher risk premium is not unreasonable. The big problem, apart from the sparse information about loans, is that they're still letting flippers run rampant, without the previous justification of them being de facto underwriters (and suppliers of loan parts at near the marginal rate). /mod hat off To am 's point about the change (ie lowering) in rates I'd note that they were lowered during a benign credit environment. When the market turns those current low rates won't look so good when default rates go up. I remember Samir telling me at some FC drinks a couple of years ago something along the lines of "... well you should get 7% across the cycle...". How are you going to achieve that with rates in the 6%-8% range, minus the fee, and minus an increase in default rates during a downturn? It was this, as much as anything, that drove me away from the platform. I now have ~£29 left in one RBR loan that seems to be paying off perfectly. Eight months to go.
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am
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Post by am on Jan 18, 2017 10:48:20 GMT
I can see the point to the last change of rates - if the predicted default rates were correct the risk premium for participating in the riskier loans was negligible, so stretching the rates so that there's a higher risk premium is not unreasonable. The big problem, apart from the sparse information about loans, is that they're still letting flippers run rampant, without the previous justification of them being de facto underwriters (and suppliers of loan parts at near the marginal rate). /mod hat off To am 's point about the change (ie lowering) in rates I'd note that they were lowered during a benign credit environment. When the market turns those current low rates won't look so good when default rates go up. I remember Samir telling me at some FC drinks a couple of years ago something along the lines of "... well you should get 7% across the cycle...". How are you going to achieve that with rates in the 6%-8% range, minus the fee, and minus an increase in default rates during a downturn? It was this, as much as anything, that drove me away from the platform. I now have ~£29 left in one RBR loan that seems to be paying off perfectly. Eight months to go. Technically, they lowered the rates on the nominally less risky loans and raised them on the riskier loans. Someone ran the numbers and concluded that it came out more or less even across the loan book as a whole. The problem is that without automation (or continually pressing the refresh button) one doesn't have access to the higher rate loans (if one wanted it), so for many of us the effect was of a rate cut.
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Jan 18, 2017 12:02:25 GMT
And the question was: "who is happy". It looks it only applies to people that left or finishing leaving FC.
I on the other hand "just" joined FC year 1.5 years ago. So never got the good rates and only briefly remembering the bidding process. My XIRR is probably around 10% at best here. Few months ago had my first default as a reality check.
What I like about FC is that is a diversification tool. I have enough property paying better rates on other platforms. This is the best SME platform in my portfolio.
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markr
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Post by markr on Jan 18, 2017 15:06:23 GMT
...and recovery is pathetic. I have to disagree with this. I'm concentrating on property loans now, so I've invested almost nothing in SMEs for about 18 months. At the moment, my recoveries is around 37% and for the last 12 months or so this figure has been on an upward trend of around 1% per month. In the majority of my defaults, the guarantor(s) are making some sort of payment (although tiny in some cases). I would expect my long term recovery rate to exceed 50%, which is not bad for unsecured SME loans.
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blender
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Post by blender on Jan 18, 2017 15:37:30 GMT
Hor, what about the recent total recovery, with scheduled interest, on 4907 - which you rightly criticised in the early days. One bright spot? Of course the loan should never have been made, but that is not the fault of collections and recoveries, who get the dirty end of the grubby stick of due diligence. I do think going forward that FC are going to have to be very tight on the budget for that department - and things may get worse.
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Post by Deleted on Jan 19, 2017 8:27:54 GMT
Still getting out, certainly not interested in putting any in.
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sl125
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Post by sl125 on Jan 19, 2017 19:03:00 GMT
.... And this on a total default which is 31.45% of my total earnings. ... And this all with careful hand-picking of loans one by one and never using autobid.... So, what you're saying is that your careful handpicking after lots of due diligence on your part resulted in returns that were far worse than if you just blindly accepted the auto bid loans? Kinda says something about your own skills (or lack of). just checking my own stats... total capital invested: £160,000. total earnings after fees and bad debt: £50,000. Total bad debt: £1,700. Ratio of bad debt to earnings is therefore just 3.4% All I can conclude is that you are either staggeringly unlucky, or your negative demeanour has engendered some reverse Midas effect on your loans :-) ....
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