rxdav
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Post by rxdav on Mar 25, 2017 23:34:23 GMT
The problem is that this sector is becoming increasingly competitive, MT either need to accept lower quality loans, slash rates for the best deals or shrink its loan book. I do wonder when the time will come for the more astute forum members to exit this sector. |Rates on some platforms look like falling to 9%, 7-8% after ISA fees and that is before defaults. A trigger could be a crash in rates due to an influx of ISA money or a crash in stock markets, sucking funds away from p2p. (my bold) I went to sleep last night pondering this question, and the conclusion I came to is the exit will beckon for me when it becomes impossible to do detailed due dilligence on individual loans. Without being able to do my own risk assessment on a loan, it would be impossible for me to continue, and yet given the problem of needing to avoid the provision of misleading communication regarding financial promotions I think its highly likely that platforms will increasingly fully anonomise the loans to prevent lender due dilligence from uncovering any misleading information (the less detail provided, the less there is to subsequently be deemed as misleading). In the meantime I suspect I'll end up investing more per loan in fewer loans.
mrclondon, Having read your brief synopsis I can only conclude that you now actively foresee a 'line in the sand' with regard to P2P that you will not cross - and one which I suspect may prevail sooner rather than later? Are we now witnessing the first dawn of the actual demise of P2P - ironically, just as the first formal IFISA's are born? Time of course will be the ultimate arbiter of such speculation - but there does seem to be an embryonic cohort of (maybe?) doomsayers who perceive such a scenario?
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Post by mrclondon on Mar 26, 2017 2:08:14 GMT
mrclondon, Having read your brief synopsis I can only conclude that you now actively foresee a 'line in the sand' with regard to P2P that you will not cross - and one which I suspect may prevail sooner rather than later? Are we now witnessing the first dawn of the actual demise of P2P - ironically, just as the first formal IFISA's are born? Time of course will be the ultimate arbiter of such speculation - but there does seem to be an embryonic cohort of (maybe?) doomsayers who perceive such a scenario?
Doomsayer is definitely too strong, as the changes I suspect that will indeed come sooner rather than later will be for the greater good of investors as a whole (but not necessarily for forum members I accept). I have never believed that the concept of selecting individual loans is appropriate for retail investors, you have only to compare the level of financial disclosure required of companies admitted to AIM with the level of disclosure required by companies seeking p2p loans to realise that the underlying data to perform appropriate risk analysis on p2p loans is in many cases totally inadequate. This is particularly the case for loans to SME's with the security based on balance sheet strength, as far too many lenders at TC (and to a lesser extent AC) have discovered to their cost. This is compounded by (with the notable exception of AC) the failure to provide follow up financial disclosure through out the life of the loan. I like to kid myself that I can avoid some of the worst loans, and that as a consequence the average yield across my loan book will significantly beat the 7% pa long run average that a common sense analysis of what historical p2p data* that exists suggests. (* particularly FC and TC ) I suspect this applies to many forum members. Certainly most of the serious p2p loan write offs that I've had I can rationally analyse and learn from, and realise that with hindsight that I had accepted risks beyond the level I should have been comfortable with. Analysing written off TC loans is particularly educational as the recovery rates are generally minuscule despite being so called secure loans. But somehow I doubt any enhanced return really justifies the effort needed, and what I and indeed most people reading this are involved in is in reality little different to the guy in the local bookies with his copy of Racing Post pretending he knows one end of a horse from the other. (And just as in the horse racing world there are potential hidden pitfalls to trap the uninitiated) Despite the FCA's apparent concerns over provision funds and pooled investments in the p2p sector, I see that as the way forward and a much more realistic approach for retail investors. Indeed if the FC investment trust was UK only and had no US exposure, I think that is where my ISA allowance would be this year. samford71 's recent post on the Bond Mason board mentioning OEICs is also thought provoking in this regard. I think the point Liz was making in the post I quoted was that with rates dropping in p2p at what point does switching to other investment classes become perceived as the better strategy. My, perhaps oblique, response was intended to convey that whilst I feel I can beat the market average (by doing my own loan by loan risk analysis) I'm likely to stay involved with p2p, but once its down to a FC style investment trust or a AC GBBA account (both which should return c. 7% pa currently perhaps dropping to 5% over the next n years) I'm more likely to look elsewhere, and would definately be looking elsewhere if the FCA discourages the development of pooled p2p investments.
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archie
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Post by archie on Mar 26, 2017 7:44:39 GMT
If this loan is under the new terms it can't have drawn down yet. Website states it has. Given the loan maturity date is 22nd March 2019, the probability is it drew down on Wednesday (22nd) shortly before the loan was launched for preview on the platform. MT aren't allowed to pre-fund the loan under the new rules.
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Post by GSV3MIaC on Mar 26, 2017 8:34:23 GMT
But the new rules may not have applied on 22/March (the new T&Cs applied from sometime on 23rd or 24th IIRC)
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archie
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Post by archie on Mar 26, 2017 8:45:37 GMT
But the new rules may not have applied on 22/March (the new T&Cs applied from sometime on 23rd or 24th IIRC) The new rules apply to Putney according to the email.
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mason
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Post by mason on Mar 26, 2017 12:38:02 GMT
But the new rules may not have applied on 22/March (the new T&Cs applied from sometime on 23rd or 24th IIRC) The new rules apply to Putney according to the email. Indeed, as of 24th, i.e. after drawdown. I don't think they could have reversed the drawdown after it had already occurred.
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treeman
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Post by treeman on Mar 26, 2017 15:02:12 GMT
Someone's keen ! - £43k slice @ 16:00:51
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 26, 2017 15:04:35 GMT
Someone's keen ! - £43k slice @ 16:00:51 Yeah, meanwhile the rest of us are making do with £25 nibbles of the AE renewal ... to each their own
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Post by sannytwist on Mar 26, 2017 15:34:32 GMT
Alot of people on MT have alot of spare cash lying about lol, 43k LOL
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ben
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Post by ben on Mar 26, 2017 15:48:03 GMT
Alot of people on MT have alot of spare cash lying about lol, 43k LOL You know what it is like when you look behind the sofa, always find a bit of lose change.
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elsee
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Retired:D
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Post by elsee on Mar 26, 2017 15:51:32 GMT
ilmoro Currently plenty of AE that isn't a renewal
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 26, 2017 16:49:58 GMT
ilmoro Currently plenty of AE that isn't a renewal thanks got plenty of normal AE, actually reducing where possible as these loans will end as opposed to stocking loan which will continue
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elsee
Member of DD Central
Retired:D
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Post by elsee on Mar 26, 2017 18:10:11 GMT
ilmoro Currently plenty of AE that isn't a renewal thanks got plenty of normal AE, actually reducing where possible as these loans will end as opposed to stocking loan which will continue That obviously disappeared so quickly that I didn't even know it had existed.
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averageguy
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Post by averageguy on Mar 31, 2017 19:36:28 GMT
Morning, Acknowledged. We have sent these points on to the valuer for comment. I would just like to say (and whilst lenders have to make up their own minds), there are a number of things supporting the valuation, including the price paid for the property (in excess of the valuation), the receipt of an offer to buy it substantially in excess of the valuation, and the fact that the development team view it as conservative and are committing over £500,000 of their own money in backing their judgement. Kind regards, Ed Have I missed the Valuers comments....a week has passed
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Post by spareafewcoppersguv on Apr 1, 2017 7:28:35 GMT
Flagging MoneyThing to ensure they spot this prompt.....
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