treeman
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Post by treeman on Feb 10, 2017 17:43:30 GMT
I find the excuse a bit poor re Lendy liability. I suspect getting their FCA authorisation is at the root of it! [crossed with ben ] Highly likely that the FCA is the driving force and just maybe an indication of some real progress in SS's application.......... It does remove the burden on the platform of having to take ownership of unpaid purchases ie by those that abused the (IMO very generous) facility ....... Was bound to happen eventually ..... as for the effects - we'll have to wait a few weeks and see 
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ben
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Post by ben on Feb 10, 2017 17:44:05 GMT
Still never figured out why people get upset over the secondary no other sites secondary market causes this many issues, it does exactly what it is meant to.
With regards to the defaults though they have added
"EXCEPTIONS
23. Exceptions may be made to this policy where deemed appropriate by our Credit Committee."
So basically had added a line to say they can what they want anyway.
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Jeepers
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Post by Jeepers on Feb 10, 2017 17:53:32 GMT
The effect on liquidity will be minimal. MT don't do INPL and it's impossible to get invested on the SM.
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jamesc
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Post by jamesc on Feb 10, 2017 17:53:54 GMT
It'd be amazing if this does not affect SM market liquidity, and that is for me one of the main draws of this platform. I don't think it will have much (if any) effect on the non-toxic 12% loans with positive days remaining, which covers my entire loan book. Indeed, the new defaults policy might boost demand for loans with modestly negative days. The bigger question for me is how many more non-toxic 12% loans we're going to see coming through the SS pipeline! NONE because they know they can get away with 10% which is why I would rather put my money into FS at 13%.
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sqh
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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 Feb 10, 2017 17:56:52 GMT
I would like to see lenders being able to sell defaulted loans at a discount. That would give lenders confidence to hold a loan for longer, but maybe I should be careful what I wish for, because the SM would get swallowed up pretty quickly.
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jamesc
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Post by jamesc on Feb 10, 2017 17:58:45 GMT
The effect on liquidity will be minimal. MT don't do INPL and it's impossible to get invested on the SM. True but one of the major differences is they have almost instant cash deposits/withdrawals so personally I don't mind having idle cash because I know if I need it, it is available there and then not the next day or so. All the other sites I use FS, MT even FC allow for almost instant cash deposits, unless SS change the deposit/withdrawal system they WILL lose liquidity.
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mosaic
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Post by mosaic on Feb 10, 2017 18:00:40 GMT
I find INPL on the SM a nice feature, I often buy a few bits and bobs when reviewing the pipeline. I certainly would not have done if I had to transfer the cash in first.
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Post by d_saver on Feb 10, 2017 18:00:42 GMT
The effect on liquidity will be minimal. MT don't do INPL and it's impossible to get invested on the SM. That's true, but I doubt it is small investors doing the buying? I rarely buy on the other SM's unless I have some interest waiting to be spent. The few quid I've spent on MT SM has only ever been when I've had some interest sitting there and something happened to pop up, or once when I didn't manage to get it on a loan and had the funds there anyway.
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Jeepers
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Post by Jeepers on Feb 10, 2017 18:01:02 GMT
A few months ago they said they were working on an automated deposit system so may launch at the same time?
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Doc
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Post by Doc on Feb 10, 2017 18:16:56 GMT
It's going to be a lot harder to sell the less popular loans if folks need to pay up front.
That's probably a good thing as it will make everyone think more carefully about buying the loan part in the first place.
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ablender
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Post by ablender on Feb 10, 2017 18:18:30 GMT
My view is that INPL is more useful for the SM than the refund. Having said that, if there is a policy (and in this I am including the default policy, and they stick to it, then I think it is a good move. However, I need to ask savingstream if they have some improvements up their sleeve that they have not announced yet. I am referring to the length of time that it takes for us to use our deposits. Without INPL I expect deposits to be fast; really fast. People quote MoneyThing as having a fast deposit system. I use MT and they are fast, and it works on their system, but they still appear as if they are crawling when compared with collateral which I have started using recently. [Perhaps something that can improve MT even further.] Deposits on Collateral vs SS - as stark a difference as day and night. Edit: SS, and while you are at it Re the re-captcha because it is not fit for purpose. |
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bg
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Post by bg on Feb 10, 2017 18:27:59 GMT
I'm surprised there are so many complaints about the SM change.
I think it's natural (and sensible) to have uninvested cash sitting on a platform. It's just the way it is with P2P unless you are strict buy and hold to maturity. I have a sizeable (although decreasing) SS holding and I'm not comfortable with the platform assuming 48 hours default risk on SM transfers - I wasn't aware this was happening as I rarely use the SM to buy. It's no surprise the regulator would clamp down on this and I don't think there can be any complaints, it actually makes our investments more secure IMO.
That aside, I think there is a strange obsession with people wanting to be 100% invested all the time (not just on SS but P2P in general) and they consider having money in a current account earning diddley squat as invested when for me it's just a rounding error. No-one likes having a lot of cash earning zero but it's worth thinking through the numbers involved. Lets assume an example (well diversified) portfolio of £100k made up of 100 1k clips which earns 10-12k a year. If you keep enough on the platform to buy another £1k tranche at any given time (and if you do buy you can transfer in another 1k from your low interest current account) then assuming a 1% rate for a current account (which is pretty high) then we are talking £10 annual missed interest against a portfolio earning £12k. Is that even relevant?
As for the impact on SM liquidity..the changes don't really matter. If as some think demand will now nose-dive because of this then all it will mean is parts hang around on the SM, so more people will transfer money in to snap them up. The market will find an equilibrium and it will still come down to supply and demand for the underlying loans on offer and not a rounding error on a small cash balance.
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dovap
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Post by dovap on Feb 10, 2017 18:28:05 GMT
I wonder how many of the impending defaults will be exceptional ?
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ablender
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Post by ablender on Feb 10, 2017 18:52:21 GMT
Agree. However both my MT and COL are fast, usually within 10 minutes (sometimes 2-3) in working hours, including the weekends. Actually quicker than completing the debit card for instant funds on ABL sometimes. They need to do fast withdrawals as well though if the SM remains at par and hoovered up by bots so that we can get our hard earned cash back after doing 50 pointless recaptchas. Please, do not get me wrong. I am not saying that MT is slow, on the contrary. But in my experience, I have found collateral to be lightening fast.
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ablender
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Post by ablender on Feb 10, 2017 18:56:20 GMT
Lets assume an example (well diversified) portfolio of £100k made up of 100 1k clips which earns 10-12k a year. If you keep enough on the platform to buy another £1k tranche at any given time (and if you do buy you can transfer in another 1k from your low interest current account) then assuming a 1% rate for a current account (which is pretty high) then we are talking £10 annual missed interest against a portfolio earning £12k. Is that even relevant? You are thinking only of yourself with big money. Why should I have £1k sitting on a platform, SS in this case, when I can have it in my bank, ready to go to which P2P platform has a good offer and arriving at that platform very fast? It is not the money that you will earn in interest from the bank which is the driving force.
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