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Post by GSV3MIaC on May 30, 2014 8:05:33 GMT
I love RS most of the time, but re-investment is a PITA, especially when someone repays unexpectedly and a lot winds up in my holding account without me expecting to find it there. Automatic reinvestment at market rate leaves me open to chasing the rates down, but doing it manually is too much work. OK that's the problem. Now a modest proposal .. How about a 'my floor' setting for automatic reinvestment at market rate?
I'd be happy to let the autopilot reinvest 5 year money at market rate AS LONG AS IT DOESN'T GO BELOW ..insert your number. (If it does, you queue it at that rate instead).
Maybe someone has already asked?
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spockie
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Post by spockie on May 30, 2014 8:07:14 GMT
It already exists!
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jonbvn
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Post by jonbvn on May 30, 2014 8:14:19 GMT
Directly from RS:
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spiral
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Post by spiral on May 30, 2014 9:20:03 GMT
I suppose the confusion arises because it happens by default if you select an actual reinvestment rate rather than market rate.
If you select to reinvest at market rate, you get that no matter how low it goes.
If you select an actual rate, say 6.0% and the MR is 5.8, you get queued at 6. If the MR increases to 6.2, you get placed at 6.2 despite your reinvestment rate being, 6.
What doesn't happen, which some people have commented on is that if tomorrow the MR drops to 6 and stays there for weeks on end, you have an offer stuck at 6.2 which you would have been happy to have accepted 6 on.
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Post by GSV3MIaC on May 30, 2014 11:40:38 GMT
Well thanks everyone .. now I need to go look for it, since in playing with the site for several months now I had failed to spot it!
Can you do the same thing for 'regular investments' by DD or whatever? I recall setting one up originally and finding my money was actually on offer below the market rate in that instance, so maybe what I'm asking for it just the same thing for regular investments too (go on someone tell me it exists!)
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spiral
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Post by spiral on May 30, 2014 12:00:26 GMT
The problem could be that what you think of as MR is not the same as the system evaluates. I don't think anyone here knows the formula but it is supposed to exclude some outliers but how many is anyone's guess.
I'm not familiar with the reg investment but don't see why it would operate differently.
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Post by westonkevRS on May 30, 2014 20:28:17 GMT
Just for some clarity, I'll repost my statement on the MR calculation process that is on the "response to forum feedback" thread:
"Money re-lent automatically at the Market Rate is calculated once a day when the overnight processing is done - see here on the web page: “The Market Rate is automatically calculated in each market every day. The rate is set at the level of the Lowest Lender Order, after discounting a small percentage of all the offers. This is done to ensure that the Market Rate is not adversely affected by outlying orders. The Lender’s repayment is then submitted to the market as an order. If the order is not matched on that day, it will be updated to the next day’s Market Rate should it be lower”. We don't state what the "small percentage" however it is very stable and isn’t actually that small"
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Post by westonkevRS on May 30, 2014 20:36:42 GMT
GS3V, This is a good request, and one that has been mentioned before and debated on the "Reinvestment Floor" thread, www.p2pindependentforum.com/thread/457/reinvestment-floorThis is quite complicated, and I have to admit I personally as a lender presumed it worked as per your suggestion. And in the vast majority of cases it works fine because money at the MR is nearly always lent out same day or higher.However it is possible for money to be "stranded" as detailed on the other thread. A decision to change to your sugesgtion is being discussed but there are disadvantages of both choices and so it isn't an easy decision. Other priorities have taken hold at the moment because we are lending so fast at the MR recently it hasn't been a concern. But at some point, a choice will be evaluated and outlined here the rationale. |
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spiral
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Post by spiral on May 31, 2014 8:50:30 GMT
I love coming up with ideas and the more complicated/geeky the better so here goes:
How about an option to set your own dynamic rate whereby you set a minimum and maximum lending speed.
So I start with a rate of 6.0% with a minimum lending speed set at 1 day and a maximum set at 5 days for example.
If my money goes out in less than my minimum time, the rate ticks up to 6.1% for any new or currently on market offers.
If it is still there after more than my maximum setting, the rate ticks down to 5.9% for all current and future offers.
The cycle then starts again.
You could then let the whole process operate without any manual intervention whatsoever.
Simples!
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