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Post by chielamangus on Mar 8, 2017 11:28:04 GMT
No, you are right, bracknellboy. I guess I have been conditioned by years of mod interventions - like Pavlov's dog, I salivate even when there is no need! |
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elliotn
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Post by elliotn on Mar 8, 2017 13:23:43 GMT
The baked beans analogy may still hold. If you consume too many the end product could be similar to the latest pipeline outputs.
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twoheads
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Programming
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Post by twoheads on Mar 8, 2017 15:02:34 GMT
DFL012 - Tranche 3 added to pipeline. £512,725
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bg
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Post by bg on Mar 8, 2017 16:22:39 GMT
There is an AC loan where investor pressure did lead to a lowering of the rate paid by the borrower, because it seemed the viability of the operation was in danger. Mind you, it still is - but perhaps it would all have folded without the investor action. I think there's a big difference between a loan that very much relies on a business remaining a going concern to pay it off and a bridging loan where the focus is on the security. By their very nature bridging loans are short in nature with a high rate (with the borrower usually looking to pay off the loan by sale of asset or refinance in a short space of time), I don't think they can be compared with a regular business loan where the rate of interest could well be a key variable in whether a business succeeds. I agree with the sentiment that if SS are making excess profits then their competitors should undercut them and this profit will be eroded away as investors and borrowers depart (but then again I believe in free markets). I don't in any way think SS have a duty to pay us a fair/significant chunk of the rate to compensate us for the risk. P2P investing is for more sophisticated investors (it's not a savings account), they should make their own risk assessment and if they deem that not to be compensated by the rate paid they shouldn't invest (and I'm sorry if some feel that is condescending but it's how markets work). I think the main duty of care platforms owe us is to undertake a high level of due diligence, get reliable valuations and to disclose as much reliable information as possible. They should provide that at a given rate and the investor should make their own judgement.
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twoheads
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Post by twoheads on Mar 8, 2017 21:29:21 GMT
In my opinion, SS have built themselves a very good position.
They've offered 12% on everything until recently. They've never lost a penny of capital or interest. They have one of the best web-sites in the field. They have an SM with liquidity adding to investor's confidence. They have a great lender base where new customers are arriving at a rate far greater than those leaving.
I believe that they have spent a good deal of their own funds plastering over several cracks to achieve the results above - I may be wrong, but if I'm right, it has taken a considerable risk in order for them to make their platform appear to be the 'most profitable in the universe' or whatever it was they claimed.
We perceive that it is us lenders who are taking the risk and that is certainly true to a large extent, especially now the platform is maturing. However, SS have also risked much to get where they are today. It could have gone horribly wrong for them but, so far, they've been on a winning streak. They have successfully built their platform to the extent that demand for their loans has vastly outstripped supply. They have tested the waters of reduced rates and found that they are able to swim, and swim powerfully.
I am lately annoyed that I spent too long on the metaphorical beach, before dipping my toes in September last year. It seems now that I have missed the boat - or at least - missed the QE2 and I am now consigned to sail on board a less interesting vessel. I've had a great taste of the 12% stuff and really enjoyed it. But in six months I will be struggling to make 10% and a year down the line it will be 7% or 8% if I'm lucky.
If I put myself in the enviable deck shoes of Tim and Liam then I think I would also be allowing market forces to persuade me to make hay whilst the sun shines [TODO - good sailing analogy here]. I don't have a clue if they're in it for the long term but there is no reason why they shouldn't profit (and greatly) from their endeavour. I cannot condemn them in any way at present: they have made everyone a shiny 12% and no dumb investor (e.g. me) has yet suffered any loss.
Having said all that from the SS side of the fence, I believe that they could improve many things on our side. To be sure, if SS remain blinded by the light of ever increasing profitability and take their hand off the rudder, forgetting about the investors' interests then the SS-Lendy could run aground even more quickly than it was launched. I and others regularly complain about the lack of transparency: how can we make investment decisions given partial (and often biased) information? SS/Lendy tell us to do our DD but they constantly fail (worse: refuse) to give us important information with which to carry out this task.
Sorry... now I'm sailing the oft sailed passage and must jump overboard (at least from this essay).
Cheers all, and thanks for reading if you got this far,
twoheads
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Post by Deleted on Mar 9, 2017 8:47:46 GMT
Quote for today:
"There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man's lawful prey."
John Ruskin
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tomtom
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Post by tomtom on Mar 13, 2017 9:45:42 GMT
Nothing showing on pipeline page interesting to see how long it is before any new loans are added.
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Post by portlandbill on Mar 13, 2017 11:06:03 GMT
not too long ;-)
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tomtom
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Post by tomtom on Mar 13, 2017 11:09:24 GMT
hope its long enough to allow SM to settle down
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elliotn
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Post by elliotn on Mar 13, 2017 11:12:30 GMT
Tranches for existing development loans normally go live quickly as the borrower will have confirmed their need for the next tranche through costs incurred/work carried out as verified by IMS. The SS float being given a good test.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 13, 2017 15:23:12 GMT
Next Tranche of DFL004 is available to pre-fund, £706k.
I wonder if SS will offer cashback on this tranche, because there is £141k available on the SM
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twoheads
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Post by twoheads on Mar 15, 2017 13:59:26 GMT
And with DFL004 Tranche 6 going live... pipeline is empty again. No bad thing with so much available on the SM.
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chunkie
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Post by chunkie on Mar 16, 2017 12:14:15 GMT
New DFL item added today
R*****e, North Yorks.
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elliotn
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Post by elliotn on Mar 16, 2017 12:21:02 GMT
c7M, cue sales of dfl 17  |
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elliotn
Member of DD Central
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Post by elliotn on Mar 16, 2017 12:24:04 GMT
Tbf half will come from the pbl release.
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