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Post by stevec2x on Feb 18, 2017 18:57:33 GMT
Ok, I've only been here a couple of months, but thought you old-timers might like to hear my view
I get the impression that lots of people on this forum have quite a lot of money invested, by which of course I mean more than me!
I also get the impression that those investors are thinking of moving to other platforms because you can't get big investments here any more
But if the platform was dominated by big investors, well that's not crowdfunding is it?
Personally, I have a relatively small investment, but I have lots of time on my hands, so my money is always fully invested in the SM, and that money has a big impact on my life
Opinions?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 18, 2017 19:05:56 GMT
Ok, I've only been here a couple of months, but thought you old-timers might like to hear my view I get the impression that lots of people on this forum have quite a lot of money invested, by which of course I mean more than me! I also get the impression that those investors are thinking of moving to other platforms because you can't get big investments here any more But if the platform was dominated by big investors, well that's not crowdfunding is it? Personally, I have a relatively small investment, but I have lots of time on my hands, so my money is always fully invested in the SM, and that money has a big impact on my life Opinions? You're wrong - I'm perfectly happy with the applied allocations, and personally, find it relatively easy (although, a tad frustrating) to make up any shortfall on the SM. Your argument may be correct for some of the Big Hitters, as once the % allocation was withdrawn, they do find it hard to invest their large pots; but for the average investor, the allocations are fine. There are 3 big problems I see with SS ATM... 1. The worst communications of all the platforms I invest with (they have been slightly better recently, but still bad) 2. Loan rates falling, but no apparent fall in the risk 3. Lack of transparency - No Surveyor reports, no contracts and dodgy looking updates The above 3 are the reasons I am moving my money
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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 18, 2017 19:28:32 GMT
Ok, I've only been here a couple of months, but thought you old-timers might like to hear my view I get the impression that lots of people on this forum have quite a lot of money invested, by which of course I mean more than me! I also get the impression that those investors are thinking of moving to other platforms because you can't get big investments here any more But if the platform was dominated by big investors, well that's not crowdfunding is it? Personally, I have a relatively small investment, but I have lots of time on my hands, so my money is always fully invested in the SM, and that money has a big impact on my life Opinions? I would also say you are probably wrong. I think that many investors are pulling out of SS or reducing holdings because they consider the risk/reward profile of the platform has changed Lower rates without lower risk, many would argue higher risk General lower quality loans Opaque, inconsistent and poor communication (slight improvement recently) A maturing loan book with a rising number of distressed loans and poor repayment visibility All of these points do slightly concur with your point that they cant get big enough sums invested, but thats big enough sums in a decent rate, decent quality, well diversified portfolio which for the reasons given above doesnt exist anymore in their opinion. The same reasons, all or some, can probably be applied to other platforms where investors have pulled out, like FC and AC MLIA for example.
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Post by Deleted on Feb 18, 2017 19:53:29 GMT
@cooling_dude - It has made me spill my tea when I see that the mighty CD is moving his money - is this all or some/which other platforms? Also why would you not invest in PBL162 for example and then sell after 6 months - with three months left, even with the new style SM from 1/3 one should have no difficulty selling. Or do you not consider this type of risk management practice to be good/am I missing the point? As ever interested in anything you have to say if you choose to respond ilmoro any views on the PBL162 example. Cheers |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 18, 2017 20:05:45 GMT
@cooling_dude - It has made me spill my tea when I see that the mighty CD is moving his money - is this all or some/which other platforms? Also why would you not invest in PBL162 for example and then sell after 6 months - with three months left, even with the new style SM from 1/3 one should have no difficulty selling. Or do you not consider this type of risk management practice to be good/am I missing the point? As ever interested in anything you have to say if you choose to respond ilmoro any views on the PBL162 example. Cheers I haven't gone yet! However, I am gradually reducing. Yes I am investing in PBL162  Time was I had 100% of my pot in SS, now that is down to 40%. That is 50% due to the above concerns, but also 50% due to a realisation that I needed to diversify to reduce my own risk. My SS strategy has now changed largely in anticipation of the rising overdue loans and lower rates, and I now expect to be largely or maybe completely out this time next year (unless the above issues are resolved) as I simply don't feel that the rates are worth the risk ( both the lower rate loans and the platform as a whole) Don't get me wrong, SS provided me with over a year worth of 12% interest and I was not affected by any bad loans. Previously their comms were top notch and compensated for their slightly suspect updates. They also listened to investors, something they don't do anymore. MT & FS are where I have moved most of my pot. Have just dipped my toes in ABL. COL & BC are 2 others I am keeping a close eye on.
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ablender
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Post by ablender on Feb 18, 2017 20:50:54 GMT
BC - Is that BridgeCrowd?
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Jeepers
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Post by Jeepers on Feb 18, 2017 21:05:39 GMT
I'm also slowly going. Don't get me wrong, it's been a great journey and I'm quite happy to hold my loans (all at 12%) until they reach their term. However, as the market has become more competitive and established, the interest rates are reducing which is the main reason I'm going.
IMO loans are getting riskier whilst the rates are getting lower. It's not that they are a lower rates because of lower risk, it's simply market forces and supply and demand.
I'm seeing lower risk loans on FS at 13/14% compared with the 8% offerings on SS.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 18, 2017 21:09:10 GMT
BC - Is that BridgeCrowd? Yep
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dzo
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Post by dzo on Feb 18, 2017 21:11:00 GMT
It's not that they are a lower rates because of lower risk, it's simply market forces and supply and demand. In theory that should be the same thing. It goes to show that people don't know what they're investing in.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 18, 2017 21:19:24 GMT
I'm also slowly going. Don't get me wrong, it's been a great journey and I'm quite happy to hold my loans (all at 12%) until they reach their term. However, as the market has become more competitive and established, the interest rates are reducing which is the main reason I'm going. IMO loans are getting riskier whilst the rates are getting lower. It's not that they are a lower rates because of lower risk, it's simply market forces and supply and demand. I'm seeing lower risk loans on FS at 13/14% compared with the 8% offerings on SS. I understand the concept of supply and demand, but I (personly) take dim view of SS profiteering on the back of other people's money. If the platform was struggling to make a profit, then I would understand, but on the face of it, SS look like a healthy business. I think too many investors are not aware of the risks, and are happy to invest and forget. IMO SS are exploiting these investors.
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tony
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Post by tony on Feb 18, 2017 22:05:42 GMT
As a small investor, with a total of £20k invested in seven platforms, I am aiming at funding a maximum of £200 in any given loan. At present my maximum loan is £3600 in a, perhaps toxic. SS loan but as and when my loans pay back I try to reinvest in smaller loans. I have neither the skill, time or interest to carry out my own DD but am sometimes guided by more experienced posters on this forum. This strategy does mean that I have to keep tabs on a multitude of small loans but I am hoping that any losses will be minimal by adopting this method. So far the interest from my modest P2P investments has paid for my (modest!) annual holiday over the past three years which suits me fine.
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Jeepers
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Post by Jeepers on Feb 18, 2017 22:17:48 GMT
SS may be throwing some 8% loans in the mix to stop the gaming. I used to have my prefunding set for every loan coming on the platform. Now I just prefund loans I like which offer 12%... in other words, I'm not prefunding anything st the moment and my loans are winding down.
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ablender
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Post by ablender on Feb 18, 2017 22:28:28 GMT
SS may be throwing some 8% loans in the mix to stop the gaming. I cannot understand how this would work. Can you please elaborate?
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GeorgeT
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Post by GeorgeT on Feb 18, 2017 22:52:00 GMT
The simplicity of this platform is outstanding and the payment of monthly interest is as reliable as clockwork.
I commend SS on those positives and I believe they are a big reason why many investors are still with them despite their many shortcomings.
However I am steadily reducing my Investments on this platform and moving money onto another platform as and when I can because my confidence in this platform is reducing because I see problems appearing and the rates being offered on new loans are lower yet there appears to be no reduction in risk to compensate for that reduction.
My opinion is that the best days of SS from an investors perspective are in the past and the future road is looking a bit more potholed and rocky.
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Jeepers
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Post by Jeepers on Feb 18, 2017 23:03:21 GMT
SS may be throwing some 8% loans in the mix to stop the gaming. I cannot understand how this would work. Can you please elaborate? My whole portfolio is 12%, it would be pointless prefunding an 8% loan, earning free interest for a couple of days as I'd then have to sell one of my 12% loans in a day or two to clear the negative balance.
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