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Post by justplayin on Apr 8, 2018 11:40:22 GMT
I hear what you are saying but surely thats cake and eat it senario ? who are you planning to sell a default loan too, even at a discount, I suppose there might be someone who'd be interested ? but like I say its a gamble I can only assume you are happy to lose your whole 200k. The problem as I see it are people with little experience in investing (I'm not necessarily including yourself in this) putting their worldly goods in to P2P platforms and expecting everything to be fine and dandy, then when it starts to go a bit peer shaped (see what I did there  ) scream and shot like its someone elses fault ? The chances of something going astray with a P2P loan is far higher than with a regular loan through the banks, why do you think borrowers are here, they are too higher risk for a normal loan company to deal with. Even with some of the valuations which appear to end up being somewhat short of the mark when it comes to sell this also happens outside P2P, prices rise and fall just like shares and given the whole brexit debarcle its really not helped prices anywhere so its not surprised we are seeing some values being a bit short of the mark. Whos to say that in 24mths time if a default loan is sold you'll get everything back plus accrual plus bonus and a decent profit for Lendy to boot. Once in default its not a case that Lendy can send round the "Heavies" as much as I'm sure you and I would like them too, we have to wait for the recovery process to take place, downside is this IS a long slow process and in the main the only people that make money are the lawyers. My only gripe with Lendy is they appear to give the borrow or have been, a bit too much rope, too often we see in the updates that they have engaged the recovery process, a couple of months go by and suddenly the borrower comes up with some magic plan of refinance, this then goes through another couple of months of "investigation" or the likes only for the borrower to vanish again, back to the recovery process but by now we are at least another 6mths or more down the line. I'd like to see a better "you are in default" its ours now bye bye Mr Borrower you aint coming back again and less faffage. This "might" speed up the recovery process. The worry is many people with large amounts of cash and little experience get the wobbles and run away shouting how hard done by they have been by Lendy, which isnt really the case. Just my view. Hi thanks for your considered post. My main point is that by letting loans go on the the chance of default is greater as interest is
due and borrower can make 30% by defaulting. As to 2% discount for selling parts, this could apply to loans before the are due to mature and allow you to get out before any risk of default and free up the stagnant SM. A few of us have over £1000000 in each p2p and S&S . Shares down 5-10% in the last month. P2P no overall losses in 3 years (just lower returns). Chances of total loss of the £40 million plus in late loans are a likely as finding MH37O.
No probs, no point in getting all aerated about these things like some do, which in my view does kind of show their naivety in P2P. While as you say adding say a 2% discount "might" work it still relies on buyers willing to take the punt, where are these buyers, who in their right mind would buy a loan near end term which has the risk of defaulting, As I say thats a cake and eat it situation and relies folks wanting to buy end term high risk loans, ask yourself would you buy one ? Shares are shares and todate cannot fault them, last year my average return was 7.5% on them so I was happy with that and in general require less "management". I think really its the whole SM bit that messes P2P up and gives people a false hope of expecting P2P to work almost like a bank account which is the problem as I see it. If there was no SM and people just bought loans and stuck with them the whole P2P industry would be better for it. Instead we have this odd situation where its like owning shares. Must admit I'd not have the figures you talk about in P2P alone as its just far to risky, like everything in life it must be in moderation, well unless you're back up by several Mill and can afford the odd 100k to go west. I enjoy P2P but as my user name states I'm just play'in at it as the risk IMHO is too great.
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bg
Member of DD Central
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Post by bg on Apr 8, 2018 12:06:25 GMT
While as you say adding say a 2% discount "might" work it still relies on buyers willing to take the punt, where are these buyers, who in their right mind would buy a loan near end term which has the risk of defaulting, As I say thats a cake and eat it situation and relies folks wanting to buy end term high risk loans, ask yourself would you buy one ? Yes I would! Not necessarily at 2% but at the right price people would buy even defaulted loans. If the market was allowed to do its job, assess the risks/rewards and find its level then there would be buyers and sellers for every loan. The SM would be liquid again and people would have more confidence investing in the platform. Forcing the market to trade at par is illusionary. It sends the wrong signal to inexperienced investors who think that P2P is less risky than other forms of investment because there is no mark to market valuation of their investments....that doesn't mean a loan is not worth 30% than what you paid for it, it just means there is no true market. I hold some loans that I would happily sell at a 30% discount and there are other loans on the platform that I would potentially buy for a 2% discount. As it is I have been withdrawing from Lendy for months. P2P lending is no place for inexperienced investors, even more so on a platform that sends illusionary signals about the value of its loans (and allows people to invest at the wrong price).
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rocky1
Member of DD Central
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Post by rocky1 on Apr 15, 2018 9:39:35 GMT
with the current situation of everything grinding to a halt could lendy think about using their large profits to invest back into their company.could lendy take a 15/20% of all live loans old and new by investing through one of their sister companies as kuflink do.this would would really get the ball rolling again with funds being returned to every investor in all loans who would then hopefully reinvest with a lot more confidence knowing that the company also held a stake and would no doubt be a lot more professional in their whole attitude when bringing loans to the platform.there might be some other way around this but i am sorry to say that i cannot see lendy lasting much longer and the way the latest updates sounded they are backing themselves further into the corner.there is not more most investors can do now as like me are probably at their limits with interest declining month after month and tied into never ending tranches/renewals/ etensions/def/etc.it just feels frustrating how this company operate and seem to tell us it is our fault for not funding loans fast enough for the borrowers.i can see a lot of funding really slowing down now and new investors are not coming in as quickly as lendy was hoping for.anyway its just a thought/idea.
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Post by p2plender on Apr 15, 2018 12:45:15 GMT
Have you been at the cooking sherry??
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Post by GSV3MIaC on Apr 15, 2018 13:10:03 GMT
I don't know about that, but they've definitely misplaced the shift key, and carriage return, again. 8<.
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Post by skint4achange on Apr 15, 2018 13:25:48 GMT
I don't know about that, but they've definitely misplaced the shift key, and carriage return, again. 8<. Someone's showing their age!
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Post by eascogo on Apr 15, 2018 16:33:20 GMT
I don't know about that, but they've definitely misplaced the shift key, and carriage return, again. 8<. Someone's showing their age! Ageism is not welcome on this forum. Btw alzheimer can develop early. I already struggle to remember my mobile number and I'm only in my middle 70s. 
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Post by skint4achange on Apr 15, 2018 16:36:05 GMT
Someone's showing their age! Ageism is not welcome on this forum. Btw alzheimer can develop early. I already struggle to remember my mobile number and I'm only in my middle 70s. In your 70's with a mobile?? Your number is probably 0000 0000001. 
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Post by eascogo on Apr 15, 2018 16:49:13 GMT
Ageism is not welcome on this forum. Btw alzheimer can develop early. I already struggle to remember my mobile number and I'm only in my middle 70s. In your 70's with a mobile?? Your number is probably 0000 0000001. How did you guess?
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Post by GSV3MIaC on Apr 15, 2018 19:40:45 GMT
I don't know about that, but they've definitely misplaced the shift key, and carriage return, again. 8<. Someone's showing their age! Probably, especially when I tell you it was Octal 10 on 5 track teleprinter punch tape (IIRC!).
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MONEY
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Post by MONEY on May 25, 2018 20:07:55 GMT
Highlighted text added yesterday, 24th May 2018:-  |
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GeorgeT
Member of DD Central
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Post by GeorgeT on May 25, 2018 22:26:07 GMT
Highlighted text added yesterday, 24th May 2018:- Good spot. I would suggest that the addition of that wording yesterday is significant in that it indicates they are thinking about employing the provision fund again after not doing so in respect of several recent loans that have failed to return full capital and interest. A city in Devon springs to mind.
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Post by loftankerman on May 26, 2018 10:31:42 GMT
I can’t say that I have much enthusiasm for the provision fund. It may help to sucker in a few prospective lenders who might find it enough to diminish their concerns about risk. Is it really much more than a marketing ploy, funded by an anticipated increase in lender uptake it hopes to generate?
The optional nature of its being brought into use makes it appear an arbitrary benefit in spite of allegedly first being pored over by committees and wizards. One would hope however that it would be used as reparation for the greater messes they get the lenders into. Obviously they can’t do it for all of them. Regrettably I imagine that anyone with an eye on the bottom line at Lendy might be more concerned to swing it into action with much flag waving when the cost of doing so is minimal.
In my imperfect World I’d rather the concept of ‘provision’ related to a less costly provision, not of funds, but of a part time team of gentlemen with good presentation skills who would sell the benefits of project management and paying up on time to errant borrowers. I mean, just how many horse’s heads do you have to find in your bed?
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) scream and shot like its someone elses fault ? 
