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Post by skint4achange on Mar 22, 2018 15:43:47 GMT
You should ALWAYS plan to be in a DFL until the very end. It is the only way that you can't be shocked. So, if you don't think you are going to want to hold it in the end, don't invest in it at all. Or, as in this case, a year or two AFTER the (planned, signed up for) 'very end' That's wwhat irks me .. the loan has been extended, the security changed (allegedly for the better, but I maybe liked having the freehold), and I didn't get a bid (and no extra interest rate on the new loan). Correct, the loan has been extended. And TBH it was probably the best option in the long run. The other option would have involved putting more pressure on a development to sell/refinance when that has been tried and at present proves to be unachievable.
At least in the way that this has been done now there is a chance that more people will have a chance of getting their money back from both this and the other DFL while at the same time getting a 12% pa pay out for the next 6 months.
The alternative would have been to have received an extra ~5% of your invested money back now and force the DFL to become a default which means no 12% for the next 6 months and a possible nightmare getting any money back from this in the long run.
I understand the frustration in "Kicking the can down the road" but I can also see why it was done in this case. Getting 6% of your money back over the next 6 months and then getting your money back after a default is still better than just getting your money back from a default (If it defaults). But at least we are giving the developer time to complete the sale and get 100% of our money back.
P.s. The figures are not necessarily correct, but the principle stays the same.
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Jeepers
Member of DD Central
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Post by Jeepers on Mar 22, 2018 16:27:50 GMT
Someone has just put £40k in the old tranche!!! Missing £800 cashback  |
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Post by picanto on Mar 22, 2018 20:23:39 GMT
Only £400k invested in tranche 20 even with 2% cashback offer and another £2.5 million required. How is this going to get filled?
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Post by df on Mar 22, 2018 20:44:21 GMT
Only £400k invested in tranche 20 even with 2% cashback offer and another £2.5 million required. How is this going to get filled? The previous trance 19 is not drawn yet. It could be that the borrower doesn't require cash immediately, the term is now over one year so may be they hope that it will gradually fill in?
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hazellend
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Post by hazellend on Mar 22, 2018 20:45:55 GMT
Only £400k invested in tranche 20 even with 2% cashback offer and another £2.5 million required. How is this going to get filled? Very slowly? The hay day of loans getting filled at launch are gone and this is the current new normal.
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dovap
Member of DD Central
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Post by dovap on Mar 22, 2018 20:48:38 GMT
easy - just keep flogging bits of 'DFL' 005
until this dreary field of sheds is done &
keep kicking the can
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xpubman1
Member of DD Central
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Post by xpubman1 on Mar 22, 2018 21:38:43 GMT
Well I am not sure I would park my John Deere in one of those sheds.
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tx
Member of DD Central
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Post by tx on Mar 22, 2018 21:59:14 GMT
Very slowly? The hay day of loans getting filled at launch are gone and this is the current new normal. I like your term “new normal” but it really means the liquidity that Ly had provided and enjoyed by many lenders are gone. The snowball effect is rolling fast, and self fulfilling too, lenders will invest less when they notice the past is no more. Like a contagion market event and subsequent flight to liquidity and the secondary market just keeps deteriorating. Would we ever see the level of liquidity ever comes back to Ly? Like the old days that secondary market is ... ... empty! Whatever loan parts come up would just be snapped up within ... ... seconds, almost feels like there is a bot behind the market.
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hazellend
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Post by hazellend on Mar 22, 2018 22:10:01 GMT
Discounting would help the secondary market and higher rates help the primary market.
If you look at ABLrate they seem to be the only high interest P2P able to fill new loans quickly and also have a very liquid secondary market.
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Jeepers
Member of DD Central
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Post by Jeepers on Mar 22, 2018 22:31:25 GMT
Discounting would help the secondary market and higher rates help the primary market. If you look at ABLrate they seem to be the only high interest P2P able to fill new loans quickly and also have a very liquid secondary market. Lendy don't want to get the SM moving, they want to fund new loans and pocket the interest of loans on the clogged SM from which they'll be netting around £3000 a day!
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hazellend
Member of DD Central
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Post by hazellend on Mar 22, 2018 22:34:29 GMT
Discounting would help the secondary market and higher rates help the primary market. If you look at ABLrate they seem to be the only high interest P2P able to fill new loans quickly and also have a very liquid secondary market. Lendy don't want to get the SM moving, they want to fund new loans and pocket the interest of loans on the clogged SM from which they'll be netting around £3000 a day! Good point.
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tx
Member of DD Central
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Post by tx on Mar 22, 2018 22:58:37 GMT
Lendy don't want to get the SM moving, they want to fund new loans and pocket the interest of loans on the clogged SM from which they'll be netting around £3000 a day! I always feel the practice of stoping paying interest when it is up for sale in secondary market is unfair and almost sinister. For sales doesn’t mean at all any of the loan aren’t funded! Lender bears the same amount of risk during up-for-sale period. But this unfair practice has been adopted by all(?) p2p platforms. Sometimes I wonder, why am I still investing with these market abusers. Maybe it is time to say enough is enough.
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jontyab
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Post by jontyab on Mar 22, 2018 23:03:54 GMT
Lendy don't want to get the SM moving, they want to fund new loans and pocket the interest of loans on the clogged SM from which they'll be netting around £3000 a day! I always feel the practice of stoping paying interest when it is up for sale in secondary market is unfair and almost sinister. For sales doesn’t mean at all any of the loan aren’t funded! Lender bears the same amount of risk during up-for-sale period. But this unfair practice has been adopted by all(?) p2p platforms. Sometimes I wonder, why am I still investing with these market abusers. Maybe it is time to say enough is enough. Several platforms accrue interest on selling parts. Assetz and Ablrate come to mind
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tx
Member of DD Central
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Post by tx on Mar 22, 2018 23:10:00 GMT
A stopped SM is cannibalising the primary market. That doesn’t make sense to me either.
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Post by charliebrown on Mar 22, 2018 23:46:36 GMT
Very slowly? The hay day of loans getting filled at launch are gone and this is the current new normal. I like your term “new normal” but it really means the liquidity that Ly had provided and enjoyed by many lenders are gone. The snowball effect is rolling fast, and self fulfilling too, lenders will invest less when they notice the past is no more. Like a contagion market event and subsequent flight to liquidity and the secondary market just keeps deteriorating. Would we ever see the level of liquidity ever comes back to Ly? Like the old days that secondary market is ... ... empty! Whatever loan parts come up would just be snapped up within ... ... seconds, almost feels like there is a bot behind the market. I think first and foremost we all need to pray that LY doesn’t collapse. If they need to cream off OUR interest from loans languishing on the SM to survive then I guess that’s better then them collapsing. The melting snowball effect is pretty much all LY’s own doing. They’ve destroyed lender confidence by their own arrogance and disdain for lenders. They’ve had an “easy come, easy go” attitude towards lenders. If LY can show some humility and put right all the wrongs then I feel the confidence will return. We need a campaign “making Lendy Great Again”.
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