mikes1531
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Post by mikes1531 on Mar 8, 2017 0:52:18 GMT
I just hope I can exit gradually over that period without losses. If you're really worried about that... exit now, and quit while you're ahead!
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GeorgeT
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Post by GeorgeT on Mar 8, 2017 1:06:33 GMT
I just hope I can exit gradually over that period without losses. If you're really worried about that... exit now, and quit while you're ahead! It's tempting Mike, but the allure of maybe being able to get 12% for another 3 or 4 months is a big temptation - as well as a risk. I'm not in any negative day loans and the liquidity of the SM makews it possible for me to ensure that doesn't arise (at present). I know it's a risk though and the SM could turn on its head in a matter of days due to 1 or 2 big events.
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am
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Post by am on Mar 8, 2017 1:30:32 GMT
PBL20 never cost them anything only potential profits, as for the new loan not one I will be investing in either. I think the accrued interest came out of SS pockets. The excess capital came from the PF, but I never really got my head around how the PF works in relation to SS P/L account. In any case, it would have made a dent, but only a small one. Lendy will also have had to write off their equity investment, though one expects that this was done some time ago, such as not later than when the loan was defaulted. Do we know that the capital shortfall was funded from the PF? I would have thought that as an old T&C loan the capital shortfall should have been funded from Lendy's own resources.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 8, 2017 1:38:42 GMT
I think the accrued interest came out of SS pockets. The excess capital came from the PF, but I never really got my head around how the PF works in relation to SS P/L account. In any case, it would have made a dent, but only a small one. Lendy will also have had to write off their equity investment, though one expects that this was done some time ago, such as not later than when the loan was defaulted. Do we know that the capital shortfall was funded from the PF? I would have thought that as an old T&C loan the capital shortfall should have been funded from Lendy's own resources. The PF it's use to cover shortfalls on old T&C loans was questioned, but that mainly come about due to a misinterpretation of an old post by SS (A post I have incorrectly quoted when discussing this subject) However, the PF existed long before the new T&Cs and SSSH Ltd came about, and was actually active when PBL020 went live. The e-mail sent to investors confirmed that the PF has been used for the capital... The e-mail does not clarify if the PF was used to cover the interest (it is assumed that it was not).
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am
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Post by am on Mar 8, 2017 1:41:20 GMT
risk return fails on this one.... could be the first in a long long time that does fully fund... if it does then agree with many that may be the start of much lower returns on saving stream in general. Moneything usually 11%+ throughout so may have to shift more funds there.... 7% no thanks.. People have pointed out that there are comparable loans on other platforms at comparable rates. FC would be 9% or 10%, but probably a lower borrower rate. BTL mortgages are down to 6.5% at AC, and a 6.5% bridge at a higher LTV was reported from LendInvest. There are points related to this loan that I would like to understand before participating, but do we have any objective reason to think that this is underpriced, or are we just extrapolating from the generality of SS loans?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 8, 2017 1:51:17 GMT
risk return fails on this one.... could be the first in a long long time that does fully fund... if it does then agree with many that may be the start of much lower returns on saving stream in general. Moneything usually 11%+ throughout so may have to shift more funds there.... 7% no thanks.. People have pointed out that there are comparable loans on other platforms at comparable rates. FC would be 9% or 10%, but probably a lower borrower rate. BTL mortgages are down to 6.5% at AC, and a 6.5% bridge at a higher LTV was reported from LendInvest. There are points related to this loan that I would like to understand before participating, but do we have any objective reason to think that this is underpriced, or are we just extrapolating from the generality of SS loans? Well, it is still a bridging loan which are inherently risky and usually see a premium. The LendInvest bridging example seems to be an exception to the rule as opposed to the norm (although, give it a couple of months...) A couple of notes... > A look at the local area shows that it is possibly overpriced a tad > There is, as mentioned in the VR, 2 large housing estates being erected at either side of the building As noted by others, it is not the worst looking 7%. By virtue of if size, I think it has landed in about the right bracket. Personally, it is slightly out of my bracket for investing, but if your portfolio includes 7% loans, I don't think it is the worst looking option out thier.
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Steerpike
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Post by Steerpike on Mar 8, 2017 8:16:45 GMT
Of course FC headline rates do not take account of the FC monthly fee or the FC selling cost, sell after 4 months on FC at par and you have a similar rate to LI and the notorious 7% loan on SS.
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agent69
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Post by agent69 on Mar 8, 2017 10:36:18 GMT
. I fear the heavy SS advertising has attracted a lot of uninformed building society 'savers' who are still being blinded by 7% or 8% when they compare it to what their High Street bank is offering Don't knock it. These are the same people who will be queuing up to buy your rancid old 12% dog t*urds on the SM.
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twoheads
Member of DD Central
Programming
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Post by twoheads on Mar 8, 2017 16:00:00 GMT
Go live has been delayed (apparently more DD needed, according to SS e-mail).
Perhaps nobody's prefunded it!
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Tunny
Sometimes it is the people no one imagines anything of who do the things that no one can imagine
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Post by Tunny on Mar 9, 2017 10:48:24 GMT
So more DD....would it be a first if following more DD the rate was hiked to attract more pre-funding if there has been bug*er all so far?
SS reason being "discovery" of higher risk. The reality being SS cant attract investors at 7%
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twoheads
Member of DD Central
Programming
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Post by twoheads on Mar 15, 2017 13:49:17 GMT
Drawn down earlier today.
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Post by ladywhitenap on Mar 16, 2017 14:47:33 GMT
Now dropped to 784 investors and £9 up for grabs at 2.45pm Oh dear no funds in my account so will just have to let this one pass me by.  LW |
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 16, 2017 18:17:28 GMT
I look at my personal SS loanbook and I'm stuffed with 12% loans and a couple of 11%s. But the remaining terms are reducing down to my bail out dates and there's nothing new coming through that looks decent enough for me to invest in. My only conclusion when I look at my remaining loan terms is that the size of my investment in SS will steadily decrease over the coming months to the point where I will be out altogether in about 6 months time, and mostly out in 4 months time. I just hope I can exit gradually over that period without losses. If I do, I will look back on SS with fondness and be thankful for my double digit returns. But nothing lasts forever. I fear the heavy SS advertising has attracted a lot of uninformed building society 'savers' who are still being blinded by 7% or 8% when they compare it to what their High Street bank is offering - but who may come a cropper. Sadly some of those people seeking a decent return on their life savings may be the people who can least afford to lose any of their money and I wonder if we may end up seeing Iceland type protesters demanding state compensation and claiming mis-selling - even though they were stupid and naive and should have read the small print. At least I understand the risks and if I end up losing any of my capital I will take it on the chin and accept I knew what I was getting into. I won't be losing my house, my car and I will still have sufficient wealth to maintain my lifestyle. I fear some others may feel greater pain. Maybe not their fault if certain VERY important facts are inexplicably omitted from Valuation "Reports"?
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 16, 2017 18:22:05 GMT
Go live has been delayed (apparently more DD needed, according to SS e-mail).
Perhaps nobody's prefunded it! Ha Ha, more DD needed, so SS runs a Spelling Checker before going Live! 
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Post by df on Feb 2, 2018 15:41:34 GMT
Repaid.
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