dermot
Member of DD Central
Posts: 863 
Likes: 517
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Post by dermot on Mar 15, 2017 22:35:21 GMT
I took a couple thousand out several months back when things were particularly slow (and stashed it into some 3 month loan extensions elsewhere).
I've pretty much topped it back up to my initial £15K-ish target and it seems to be routinely sitting much closer to 96% though there are still the odd occasional dry patches.
It seems odd that my wife will get some new loans invested when I see an occasional drought for a couple of weeks; maybe BM will develop some (more) advanced tools that will flag any accounts that stall in the way that several people have seen.
All told, however, BM does seem to have improved quite a bit in terms of cash drag this year.
If/when the promised mechanism is introduced for monthly auto-withdrawal of interest, I'll probably increase my holding quite a bit further as I'm slowly drawing down from other platforms with falling returns - so long as cash drag remains reasonably low.
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Post by khampson on Mar 16, 2017 17:29:12 GMT
I agree with the above statement, BM could of easily of been careless just to get money out on loan, since last July I've had no default or missed payments.
Steve has always answered the question asked and I appreciate his honesty, he called we and has emailed me regularly.
I like it here and I trust BM to do the right thing, later this year I'm increasing my investment with BM
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edward
Member of DD Central
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Post by edward on Mar 16, 2017 18:16:13 GMT
Just to balance things a bit, I have also been a member since July,but have had 3 defaults which just about wipe out interest to date once fees are deducted. Hopefully monies will be recovered, but I have no idea how this is progressing, and in the meantime I guess at best I am suffering another form of cash drag.
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Post by Deleted on Mar 16, 2017 18:39:21 GMT
edward: That sounds quite worrying. I wonder if anyone else who's had funds invested since back then or before can comment on defaults so far. The BM default rate on the statistics page looks fine though. Perhaps you were unlucky?
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Post by Deleted on Mar 16, 2017 18:40:56 GMT
I am interested to ask the following about Bond Mason:
It seems that time to deployment is slower than 28 days, and there seem to be a lot of lenders waiting still (I'm one of them). What I find slightly strange is why Bond Mason would continue to be advertising for new lenders (e.g. Google Ads I've seen) when this is the case. I like Bond Mason so far and the idea of it a lot, but this concerns me a bit. Any ideas?
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edward
Member of DD Central
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Likes: 24
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Post by edward on Mar 16, 2017 21:32:32 GMT
edward: That sounds quite worrying. I wonder if anyone else who's had funds invested since back then or before can comment on defaults so far. The BM default rate on the statistics page looks fine though. Perhaps you were unlucky? Cue the violins? ...I was caught by some of the invoice discounting defaults which are commented on somewhere else on this forum, so do not think I am the only unlucky one. I believe Bond Mason have indicated they are planning on restricting their future usage. Ironically, I was initially quite pleased to see their purchase as a useful diversification.
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Post by eascogo on Mar 17, 2017 1:55:12 GMT
Just to balance things a bit, I have also been a member since July,but have had 3 defaults which just about wipe out interest to date once fees are deducted. Hopefully monies will be recovered, but I have no idea how this is progressing, and in the meantime I guess at best I am suffering another form of cash drag. . It looks like you were unlucky. Your setting is likely to be at 2%, this would account for 3 defaults wiping out your interest. But allow for likely future recoveries. I also invested one lump sum mid-July to test the waters. My setting is at 1% with no default to date. Return after 8 months is 6.8% even after a 5-week drag to full investment. Therefore, assuming no default, returns above 7% after 12 months can be expected. Currently 99.7% invested and 8.19% headline rate.
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treeman
Member of DD Central
Posts: 1,026
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Post by treeman on Mar 17, 2017 11:15:31 GMT
Just to balance things a bit, I have also been a member since July,but have had 3 defaults which just about wipe out interest to date once fees are deducted. Hopefully monies will be recovered, but I have no idea how this is progressing, and in the meantime I guess at best I am suffering another form of cash drag. . It looks like you were unlucky. Your setting is likely to be at 2%, this would account for 3 defaults wiping out your interest. But allow for likely future recoveries. I also invested one lump sum mid-July to test the waters. My setting is at 1% with no default to date. Return after 8 months is 6.8% even after a 5-week drag to full investment. Therefore, assuming no default, returns above 7% after 12 months can be expected. Currently 99.7% invested and 8.19% headline rate. My one Invoice Discounting default hit quite early whilst I was on my initial investment 2% setting, so if no recovery will dent the return quite heavily ........... Lesson learnt, 1% since then, I'll give it a full year to assess properly - remaining well invested, though my 'headline' rate has dropped slowly over the last month or so.
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sb
Posts: 166
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Post by sb on Mar 17, 2017 15:25:20 GMT
edward . It looks like you were unlucky. Your setting is likely to be at 2%, this would account for 3 defaults wiping out your interest. But allow for likely future recoveries. I also invested one lump sum mid-July to test the waters. My setting is at 1% with no default to date. Return after 8 months is 6.8% even after a 5-week drag to full investment. Therefore, assuming no default, returns above 7% after 12 months can be expected. Currently 99.7% invested and 8.19% headline rate. My one Invoice Discounting default hit quite early whilst I was on my initial investment 2% setting, so if no recovery will dent the return quite heavily ........... Lesson learnt, 1% since then, I'll give it a full year to assess properly - remaining well invested, though my 'headline' rate has dropped slowly over the last month or so. Changing from 2% to 1% won't change much. Around 10-15% invoice discounting loans will default over one year period. Assuming half of your portfolio are ID loans you should expect 5-8% of your portfolio to default. In your case that is 6% (3/50). Good news is the recovery rate for ID loans seems to be 70-80%, so if you are not unlucky you should lose 1-2% (on average).
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Post by stevefindlay on Mar 17, 2017 20:30:56 GMT
I am interested to ask the following about Bond Mason: It seems that time to deployment is slower than 28 days, and there seem to be a lot of lenders waiting still (I'm one of them). What I find slightly strange is why Bond Mason would continue to be advertising for new lenders (e.g. Google Ads I've seen) when this is the case. I like Bond Mason so far and the idea of it a lot, but this concerns me a bit. Any ideas? Our challenge relates to the volume of new loans (not the value) : i.e. finding 50-100+ loans each month - the challenge is the same pretty much regardless if we have 1 new client or 250 new clients. It doesn't matter if we then need to take £50k,£100k or £200k in each loan - which is driven by the amount of new funds (hence why we still seek more clients).
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Post by Deleted on Mar 18, 2017 9:29:11 GMT
I am interested to ask the following about Bond Mason: It seems that time to deployment is slower than 28 days, and there seem to be a lot of lenders waiting still (I'm one of them). What I find slightly strange is why Bond Mason would continue to be advertising for new lenders (e.g. Google Ads I've seen) when this is the case. I like Bond Mason so far and the idea of it a lot, but this concerns me a bit. Any ideas? Our challenge relates to the volume of new loans (not the value) : i.e. finding 50-100+ loans each month - the challenge is the same pretty much regardless if we have 1 new client or 250 new clients. It doesn't matter if we then need to take £50k,£100k or £200k in each loan - which is driven by the amount of new funds (hence why we still seek more clients). Thanks for the reply, that makes sense.
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TheDriver
Member of DD Central
Slightly bonkers
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Post by TheDriver on Apr 17, 2017 4:43:44 GMT
4 weeks in total to get to 100%, looking at the current pipeline and given you are 2 weeks in. Thank you for info. I will then continue my test of Bondmason. I hope my slow deployment is a result of a technical glitch. Otherwise 4 weeks deployment would require the stream of new loans to jump from 5 per week to 20 per week. Not a very realistic scenario. Hi sb; How did it work out? I'm 3 weeks in and just 40% deployed, so wondered if a little optimism is likely to be justified - or is it more likely to just (cash) drag on?
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