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Post by dan1 on Dec 10, 2017 22:11:23 GMT
... - Borrower Reference
It is getting very difficult to monitor cumulative exposure to a single borrower across multiple loans, whether that be multiple toy train loans or 8 tranches of a single development in Surrey. Adding a unique borrower reference would not compromise anonymity, and would permit investors to monitor their cumulative exposure.
... From the My Investments section you can download current and historic investment summaries for each loan in PDF format. Included in these summaries is a Borrower code, which I expected to be able to use to identify unique borrowers but unless I'm mistaken they're all the same. Is this actually the lender code? fundingsecure ?
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r00lish67
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Post by r00lish67 on Feb 26, 2018 8:15:35 GMT
Hi fundingsecure , It seems that someone/some people are getting the frights, as I've noticed that there are 28 loans at the maximum 1% discount on the SM. That's not particularly concerning in itself, but given that you're likely due to release an awful lot of renewals soon given the backlog as well as, I'm sure, further new loans (which will further depress the market) can we revisit the maximum discount level question? I'd suggest that this is in your interest, as I believe a significant proportion of your investor base use FS firmly with the aftermarket in mind, and if we end up in a situation where any loan with less than circa 130 days remaining is unsellable at any price, then I think demand is going to be dampened further. Pre-ISA days, I don't recall any discounts greater than 2% hanging around for any meaningful amount of time. Would allowing discounts of up to 2% (and the same 0.1% intervals between -1 and -2) be something you could consider? |
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adrian77
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Post by adrian77 on Feb 26, 2018 8:28:30 GMT
Agree - if I had loans such as Whitehaven I would be happy to sell them for 20% discount!
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r00lish67
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Post by r00lish67 on Feb 26, 2018 9:37:51 GMT
Agree - if I had loans such as Whitehaven I would be happy to sell them for 20% discount! Well, that's a bit of a different and more controversial kettle of fish, which dan1 raised here p2pindependentforum.com/thread/11746/secondary-market-open-overdue-loansI'm only proposing one step back towards how it used to be, just for loans >30 days. The 1% cap was only introduced due to people trying to game their ISA's I believe. I don't know how much science there was in selecting 1%. I hope a higher number would still be reasonable measures. On the face of it, it's a minor change, but I do honestly believe that a free market SM is one of the key reasons that Assetz, FS, and Ablrate don't currently have as significant of an issue as Lendy, Coll and MT do currently in filling new loans.
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spyrogyra
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Post by spyrogyra on Feb 26, 2018 12:25:28 GMT
That reminds me last year I advocated for the introduction of premiums/discounts at Lendy, just before the SM got clogged. I wish now we are not reaching that point with FS. So many ppl are buying with the thought of selling "after a few months", that if/when such a moment comes it will be a disaster.
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aj
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Post by aj on Feb 26, 2018 13:28:26 GMT
That reminds me last year I advocated for the introduction of premiums/discounts at Lendy, just before the SM got clogged. I wish now we are not reaching that point with FS. So many ppl are buying with the thought of selling "after a few months", that if/when such a moment comes it will be a disaster. Loan flipping doesn't do a platform any good. There are lots of live loans on FS that shouldn't ever have filled, if these are now impossible to shift I have little sympathy with the original buyers if flipping was their intention. These junk loans actually harm the better quality loans on FS, as staff will be busy managing the junk, and their eventual failures will make it harder for the better loans to be funded.
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Liz
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Post by Liz on Feb 26, 2018 16:33:13 GMT
Let's see what happens at the start of ISA season, wrt the discounts.
FS need to pay higher rates or find better quality loans, because there is very little I would buy on the SM even @2% discount.
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spyrogyra
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Post by spyrogyra on Feb 26, 2018 23:23:08 GMT
Half of the flipping is caused by the low-quality loans offered by the platform that shouldn't be offered at all. Why were they offered? Because of greed. Why were they bought? Becuase of similar greed and gamble. Those that have bought but at some point have realised it's totally rotten tomatoes are selling at a discount to others, braver gamblers - most of them in full knowledge of the current situation. Now the question is should the permissible % of the discounts/premiums be 2% instead of 1%. Why not, if the platform can get away with no updates for months after repayment dates, if the valuations can be so drastically unreal, etc, then why not, not a big deal! Just a bit more exciting gambling for some folks.
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r00lish67
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Post by r00lish67 on Feb 28, 2018 10:32:54 GMT
It seems there's already some very literal Collateral damage being done to the FS SM. I think I said the other day that there was 28 or so loans at the full discount, and now there's 59 -more than 25% of the loans available on the SM. On the plus side, it is making the SM more 'real' - in that loans which were always poor value are trading at max discount, whilst good loans still attract premiums or aren't available at all. I'm sure fundingsecure will act to reassure their investors based upon whatever unfortunate tale arises from Collateral (yes, I am invested there too). I'm hoping that part of that response is to include an appreciation that their SM is key to investor confidence, and recognise that a thought out way to allow the market to continue to operate and adjust to the changing market conditions properly is required. Imposing caps has worked fine for the last 8 months or so, but if it wasn't before, it's definitely a different landscape now. |
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Post by mike1963 on Mar 8, 2018 16:30:49 GMT
It seems there's already some very literal Collateral damage being done to the FS SM. I think I said the other day that there was 28 or so loans at the full discount, and now there's 59 -more than 25% of the loans available on the SM. On the plus side, it is making the SM more 'real' - in that loans which were always poor value are trading at max discount, whilst good loans still attract premiums or aren't available at all. I'm sure fundingsecure will act to reassure their investors based upon whatever unfortunate tale arises from Collateral (yes, I am invested there too). I'm hoping that part of that response is to include an appreciation that their SM is key to investor confidence, and recognise that a thought out way to allow the market to continue to operate and adjust to the changing market conditions properly is required. Imposing caps has worked fine for the last 8 months or so, but if it wasn't before, it's definitely a different landscape now. I have to agree with r00lish67 's comment "SM is key to investor confidence". Currently, on FS there are now 92 Loans/Tranches on offer at full discount of 1%. On MT where the SM only trades at Par, the market is clogged and half-filled development tranches are threatening to derail whole projects. Yet, ABL's SM clears much more easily as it is not constrained by the 1% limit on Discount/Premium. A motivated Seller can set a price at a level low enough to find a willing Buyer. Today there are 41 loans on the SM and none are currently offered at a discount, implying a level of confidence in the quality of those loans on offer. For investors to remain confident in Platforms and take part in their loan offerings, they have to be able to transfer risk at the right price, as long as the rules are transparent and everyone grasps the principle "Caveat Emptor". All Platforms should free up their SMs and let the money flow freely to where it truly wants to be.
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Post by mike1963 on Mar 12, 2018 12:39:09 GMT
Currently, on FS there are now 92 128 Loans/Tranches on offer on the SM at full discount of 1%...fyi
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number5
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Post by number5 on Mar 12, 2018 20:54:37 GMT
Currently, on FS there are now 92 128 Loans/Tranches on offer on the SM at full discount of 1%...fyi Anyone have any good theories as to what is going on here??!!
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 12, 2018 21:52:48 GMT
Currently, on FS there are now 92 128 Loans/Tranches on offer on the SM at full discount of 1%...fyi Anyone have any good theories as to what is going on here??!! I suspect AC have poached some IFISA money. Since xmas there have been too many loans not renewing on time. Collateral has got lenders worried. A 1% discount is not very much on a loan that is 4 or 5 months old. In fact, for a 20% tax payer selling a 12% interest loan at 1% discount after 5 months, is the same as selling at par after tax. FS really need to allow discounts of 2%.
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number5
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Post by number5 on Mar 12, 2018 21:56:57 GMT
Anyone have any good theories as to what is going on here??!! I suspect AC have poached some IFISA money. Since xmas there have been too many loans not renewing on time. Collateral has got lenders worried. A 1% discount is not very much on a loan that is 4 or 5 months old. In fact, for a 20% tax payer selling a 12% interest loan at 1% discount after 5 months, is the same as selling at par after tax. FS really need to allow discounts of 2%. I agree...deffo need an increase in the discount you can apply. Hoping this slump ends quite quickly!!
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Post by mike1963 on Mar 12, 2018 22:18:22 GMT
Anyone have any good theories as to what is going on here??!! I suspect AC have poached some IFISA money. Since xmas there have been too many loans not renewing on time. Collateral has got lenders worried. A 1% discount is not very much on a loan that is 4 or 5 months old. In fact, for a 20% tax payer selling a 12% interest loan at 1% discount after 5 months, is the same as selling at par after tax. FS really need to allow discounts of 2%. I think... Collateral Administration + Too many Overdue Loans + Too many Large Development Loans + Ambitious RICs Valuations + Poor Auction Results (Castle,Turbines etc.) + SM Limits ... have all contributed to many P2P investors sitting on their hands because they can't get their money out. This has led to selling whatever Loans they can. Consequently, more projects will fail to fund. AC can see this, hence their 1% bonus. Unless overdue loans repay, rates go up to attract more money and/or the Secondary market is allowed to find a true market price, this will continue for some time.
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