Greenwood2
Member of DD Central
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Post by Greenwood2 on Mar 6, 2017 7:27:23 GMT
I don't mind which loans I'm invested in if BM has selected them that's good enough for me. And I understand why they wouldn't want to say which loans on which platforms they have selected because lenders could just go there directly, or make bad decisions based on their interpretation of BMs choices, etc.
I don't mind cash drag or how it's handled as long as the actual rate of return is 7% +/- a bit.
I would like smaller bite sizes, particularly as I have had a couple of defaults with larger exposure than I would have had if I had been able to select my preferred bite size. I think a 0.5% bite size is in the pipeline, I would like a selectable value in £xx(xx) but the 0.5% will be a step in the right direction.
The only thing I'm slightly concerned about is the discrepancy between the headline rate (minus fees), the target rate, and the actual rate I'm seeing. I'm trusting BM are getting on top of that.
As said above I also think BM are one of the most responsive and trustworthy platforms, long may it continue.
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groon
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Post by groon on Mar 6, 2017 8:43:20 GMT
The only thing I'm slightly concerned about is the discrepancy between the headline rate (minus fees), the target rate, and the actual rate I'm seeing. I'm trusting BM are getting on top of that. I share that concern, but I too have confidence that BM will deliver. And we know they're listening. Albeit on the basis of just 6 weeks' experience of using BM, I agree with that too.
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adrianc
Member of DD Central
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Post by adrianc on Mar 6, 2017 9:18:11 GMT
I really fail to see what the problem with BM's model is, unless you're actively looking for something to blow up and label a "problem".
BM are very up-front about what they do - which, yes, is identify and resell other people's loans. Those loans are available direct. BM's value-add is their DD. They charge 1% for that value-add...
Giving that away by naming the platforms and loans they've identified as being suitable for their "perspex box" (or even giving sufficient clue to enable them to be identifiable) would be commercial suicide. Why on earth would they do that?
It's really very simple... If you don't think that the BM DD is worth 1%, then DIY. Goferit. Good luck to you.
(As for the short-term irrelevant XIRR... After just two months, and a cash-draggy start, my account is a snidge under 4%. I'm very happy, and my position will be increasing.)
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fogey
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Post by fogey on Mar 7, 2017 17:56:52 GMT
The new format for the detailed loan listing makes it a little easier to see what is going on as you don't have to trawl though the list to see if there are any dreaded red default flags buried within it. They are now there as a selectable tab at the top of the long list, together with crystallised loss information. I hope this is not a sign of impending new data for everyone. 
Also some of the interest rates are now given to four decimal places ! This is most unusual for BM as virtually everything else is always rounded out in one or more ways. But how likely is it that two or more part loans have the same four decimal place interest rate ? Are these really from different loans (as needed to dilute the total investment risk )? It's essential to know this of course, otherwise you will be hit really hard if that loan goes down the tube.
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Post by stevefindlay on Mar 8, 2017 9:39:22 GMT
"The new format for the detailed loan listing makes it a little easier to see what is going on" - thank you
"Also some of the interest rates are now given to four decimal places ! This is most unusual for BM as virtually everything else is always rounded out in one or more ways." - we take the data directly from the underlying platform in each case. Some of these are fixed price Invoice Discount finance (indeed, I suspect all of the loans to 4dp are Invoice Discount) - which are typically expressed as a discount rate which is then converted into the equivalent Interest Rate.
"But how likely is it that two or more part loans have the same four decimal place interest rate ?" - actually quite common, as they fall within the same pricing bucket and the underlying platform then sets a fixed price for each grade.
"Are these really from different loans (as needed to dilute the total investment risk )?" - yes
"It's essential to know this of course, otherwise you will be hit really hard if that loan goes down the tube." - of course.
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adrianc
Member of DD Central
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Post by adrianc on Mar 8, 2017 12:00:01 GMT
I hadn't noticed the 4 decimal places before... Just looking down my list (93 loan parts), there's 14 4DP parts, all invoice. The most common rate is 7 x 6.1678%. But when you look at those, they're not all the same. 1 x 2mo, 4 x 3mo, 2 x 4mo. All invoice. All 100% LTV. The other recurring rate is 10.0339% - 3 x 2mo, 1 x 3mo, all invoice, but all different 75-90% LTVs. There's another 8 at 3dp - 7 of which are the same rate (11.351%) invoice, but with differing terms and LTVs. The other 3dp part isn't invoice, but property dev (6.504%). So, no, I don't think it's at all suggestive that several identical "high-accuracy" %ages imply multiple parts in the same loan. Oh, and stevefindlay - can I have some more like the 22.4197% 70% LTV invoice finance, please? Thank you! |
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Mar 9, 2017 13:19:48 GMT
Also nice to have completed loans sorted from live.
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haytor
New Member
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Post by haytor on Mar 31, 2017 19:19:44 GMT
I am a forum newbie so please excuse but I felt I needed to add , so I joined  In my first few weeks, I too shared the concerns that have been aired here, but ....... 1) stevefindlay was very responsive to me , we even fell out a little ... lol , we got over it and he answered all my questions - not the same with all p2p 2) With drag and fees I have achieved 5.8% more or less in my first year. 3) Info and website continues to improve 4) stevefindlay provides great comment on this forum. I was a sceptic and now I am happy - investing is about patience and growth is about improvement and BM have given both... Thank you. |
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