cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2017 19:09:16 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. I love the SM INPL; the best feature on SS for me - makes diversifying easy. Unfortunately, I think (as others have noted) this is more to do with the FCA, and that is hinted in the newsletter (not true P2P, as SS hold the loan for a short term). Furthermore, despite my soft spot for the feature, remember that there were signs that investors have been gaming the system; possible juggling loans in the hope for capital free interest (I'm not sure if SS ever clarified if these investors actually kept their interest or not). It will be interesting to see what happens to the SM. I appreciate investors observation on other markets such as MT, but SS is a different beast altogether. I've got a feeling activity will start to slow down, and we will see a more realistic marketplace. Some consideration will have to go into investing as opposed to buy now think later, and I hope that will make investors savvier. I think SS initially may have some problems when the first new loans go live after the SM INPL is removed - those thinking they can resolve the difference on the SM may find they will have a problem.
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Post by supernumerary on Feb 10, 2017 19:49:08 GMT
I think SS initially may have some problems when the first new loans go live after the SM INPL is removed - those thinking they can resolve the difference on the SM may find they will have a problem. DUDE, that MAY produce a much bigger available secondary market for lenders... 
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Post by supernumerary on Feb 10, 2017 19:58:27 GMT
 So it does... missed it! It will be interesting to see what happens to PBL74 & 75 on the 1st PBL081 will be over 180 days on 1st March as well. ...which got me wondering about the number of days overdue PBL020 was... PBL020 is now currently at -408 days...  Yet there are still some new lenders 'investing' in PBL020 in 2017...
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Post by rookyone on Feb 10, 2017 20:36:27 GMT
Changes probably rooted in SM getting their house in order to ensure they meet the FCA (and HMRC requirements) to offer an IF-ISA...
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2017 20:43:01 GMT
Changes probably rooted in SM getting their house in order to ensure they meet the FCA (and HMRC requirements) to offer an IF-ISA... They're probably just worried about getting full FCA Authorisation first  They can worry about IF-ISA later I'm surprised that INPL has remained for new loans. Taking the SS argument that when they hold a loan for a short period that it isn't true P2P - what about when a loan drawsdown before all investors send funds. We've seen several loan drawdown before the 48hr deadline, so I'm sure some of the loan parts where being funded by SS, and in some cases, these parts get dumped on the SM when funds aren't sent in time.
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ablender
Member of DD Central
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Post by ablender on Feb 10, 2017 20:50:03 GMT
Changes probably rooted in SM getting their house in order to ensure they meet the FCA (and HMRC requirements) to offer an IF-ISA... I'm surprised that INPL has remained for new loans. I think that is were we are heading. If we have quick automated deposits, especially if accompanied with quick withdrawals, it should not create (much) problems.
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am
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Post by am on Feb 10, 2017 21:34:21 GMT
Changes probably rooted in SM getting their house in order to ensure they meet the FCA (and HMRC requirements) to offer an IF-ISA... They're probably just worried about getting full FCA Authorisation first They can worry about IF-ISA later I'm surprised that INPL has remained for new loans. Taking the SS argument that when they hold a loan for a short period that it isn't true P2P - what about when a loan drawsdown before all investors send funds. We've seen several loan drawdown before the 48hr deadline, so I'm sure some of the loan parts where being funded by SS, and in some cases, these parts get dumped on the SM when funds aren't sent in time. For comparison MT hold loans on their books for a while as well. At MT loans go live after drawdown, having been initially funded from MT's (or perhaps BPF's) working capital, in constrast to SS where loans are drawndown some time after going live. MT's practice seem a greater risk to the platform, as they have a greater exposure which they could be left with if a loan was discovered to be toxic before going live.
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bg
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Post by bg on Feb 10, 2017 23:33:08 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. That is just not true. The example I have given (as i think you know) is just using round, base 10 numbers to make an example. Divide by 10 (or 100 if you like) and it gives the same result (£1 missed interest on £1200 earned or 10p lost on £120). Whichever way you slice it the missing interest is 0.083% pa. If lost interest isn't the driving force then what exactly is? The principle? I think you've been spoilt - you can't have your cake and eat it. Have you put a similar complaint on the MT board?
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bg
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Post by bg on Feb 10, 2017 23:37:32 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....... 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? Too much of a luxury for me to have 1K sitting quietly on each of 7 platforms. It is not just the lack of interest, it is the lack of accessibility. If the latter changed, then I MIGHT put on a small amount, and then replenish it if I get a good buy. If you have £700k earning £84k pa in interest then I don't think you should be worried about the accessibility of £7k or call that a luxury. If you are worried about accessing 1% of your money held in cash which may take a day or two to transfer out then I would shy away from P2P. You shouldn't presume you will always be able to sell your holdings in an instant as you can on SS at the moment. At some point the market will turn (as it has several times in the past) and liquidity will dry completely up.
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Post by p2plender on Feb 11, 2017 0:22:11 GMT
Not received the email - it seems they only send me 'please resolve your negative balance emails'. Am I correct in thinking I have until 1st March to keep milking INPL? After that there's no way I'm leaving idle cash in SS, pains me to leave idle cash in any platform. 100% invested 100% of the time. Often with SS, it's been 125-150% invested 100% of the time Regards |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 0:25:51 GMT
Not received the email - it seems they only send me 'please resolve your negative balance emails'. Am I correct in thinking I have until 1st March to keep milking INPL? After that there's no way I'm leaving idle cash in SS, pains me to leave idle cash in any platform. 100% invested 100% of the time. Often with SS, it's been 125-150% invested 100% of the time Regards Correct - SM INPL dies on 01/03/17
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 11, 2017 1:24:50 GMT
Just added links to the new default and SM policies to top of my pinned updates list. FAQ is also full of red ink now and will need a rewrite in March  |
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mikes1531
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Post by mikes1531 on Feb 11, 2017 2:20:06 GMT
I'm surprised that INPL has remained for new loans. Taking the SS argument that when they hold a loan for a short period that it isn't true P2P - what about when a loan drawsdown before all investors send funds. We've seen several loan drawdown before the 48hr deadline, so I'm sure some of the loan parts where being funded by SS, and in some cases, these parts get dumped on the SM when funds aren't sent in time. Isn't there a very simple solution to this 'problem'? Make a new loan live a few days before it draws down. That would provide ample time for investors to have INPL and still pay for their investment before drawdown.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Feb 11, 2017 2:24:46 GMT
I'm surprised that INPL has remained for new loans. Taking the SS argument that when they hold a loan for a short period that it isn't true P2P - what about when a loan drawsdown before all investors send funds. We've seen several loan drawdown before the 48hr deadline, so I'm sure some of the loan parts where being funded by SS, and in some cases, these parts get dumped on the SM when funds aren't sent in time. Isn't there a very simple solution to this 'problem'? Make a new loan live a few days before it draws down. That would provide ample time for investors to have INPL and still pay for their investment before drawdown. This is the preferred pre-fund suggested by others for MT, and maybe it is how SS are going to keep INPL for the PM - launching the loan 48hrs before actual live
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copacetic
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Post by copacetic on Feb 11, 2017 3:52:59 GMT
The removal of INPL feature from the secondary market is very sensible from SS's point of view as it is open to at least one glaring exploit in the case of exiting a defaulted loan. At present with only one defaulted loan at 80k on the SM it isn't platform threatening but that could change with someone unscrupulous enough. I wonder if this was done now intentionally at the same time as the new defaults policy? It might be an indication that SS are planning to formally default a few loans.
INPL is a pretty useful and unique feature to SS and it would work exploit free if SS delayed credits to account from secondary market sales until the buyer payment window has expired and crediting only if payment has been made. If the buyer doesn't pay just relist the loan part on the SM and advise the seller it didn't sell due to non-payment.
For the new investor the scrapping of INPL is a bit of a blow for diversifying into loans that were missed on the primary market.
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