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Post by p2plender on Mar 28, 2017 23:54:29 GMT
Extreme care now required.
Since inception the sm has of course been very liquid. Each time it has become clogged, SS seem to have 'thinned' the pipeline.
Looking at things now, SS suddenly seem to need a constant pipeline - yet the sm says different.
The lowering of rates was the initial warning, the second warning, in my opinion, is the increase in the pipeline even when the sm has largely ground to a halt.
Escape routes are being blocked off, the warning signs are flashing more so than they have ever been.
All imo.
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freddy
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Post by freddy on Mar 29, 2017 0:45:31 GMT
With interest being paid at the end of the week, new loans being launched today along with others being paid back, I'm reserving judgement on how the SM is performing/acting up. Things could look very different this time next week.
Looking at some of the SM availability, it appears many investors have adopted a 'get out early or earlier than before strategy' which I'm assuming is due to the more transparent approach to defaults.
Its going to be an interesting few days.
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elliotn
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Post by elliotn on Mar 29, 2017 1:50:17 GMT
I'm not sure Lendy manage the Pipeline based on our selling needs but business funding requirements.
In earlier days when loans did not fill quickly enough lender incentives were offered. They could probably do that again if the pipeline does not clear.
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Post by p2plender on Mar 29, 2017 3:20:02 GMT
INPL has hidden a multitude of sins with SS.
Look how much of their loan book is in default.
Dare not mention the 'P' word but the business model looks more and more like it now.
Many of these loans should be 20%+
Popcorn time coming up..
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ablender
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Post by ablender on Mar 29, 2017 5:48:12 GMT
I have already mentioned in another thread that I noticed that SS is trying to flood the SM. Another way to call it is to create availability of loans. My interpretation is not one of doom. I think that SS wants to be prepared for new lenders. Think in terms of changes of name mentioned in another thread. Think in terms of removal of INPL due to FCA. etc....
How far do you think are we before SS gets full authorisation. When that happens, if and when SS releases an IFISA, it will need loans available for people who register in their new product to invest in.
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r1200gs
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Post by r1200gs on Mar 29, 2017 5:55:48 GMT
I was not joking when I said yesterday on the SM thread that I really REALLY did not want SS to be activating any of the pipeline loans until after Friday, followed by them activating the whole pipeline. This is indeed the scenario I most wanted to avoid. Partly my own fault for taking my eye off the ball in the last few weeks, but I can now see me being stuck in at least one loan all the way to default. Time to look again at my relationship with SS.
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elliotn
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Post by elliotn on Mar 29, 2017 6:11:32 GMT
We may be being forced into looking at SS less as a high interest rate, instant access account and more as an investment vehicle where investors do DD and then make investment choices they are prepared to hold until term.
Strap in and dial up your bargepoledar it could be a bumpy ride 😎.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 29, 2017 6:12:18 GMT
You shouldn't invest expecting the SM to bail you out. You should only invest funds you know you won't need for at least the term (and that you can afford to loose) and expect to hold to term (and is why DD is required on all investment)
Recent events have contributed to the illiquidity but it is nothing new; SS have had bouts of illiquidity in the past, and it will in the future
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bababill
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Post by bababill on Mar 29, 2017 6:15:31 GMT
You shouldn't invest expecting the SM to bail you out. Correct, that is what the provision fund is for.
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r1200gs
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Post by r1200gs on Mar 29, 2017 6:18:18 GMT
I have already mentioned in another thread that I noticed that SS is trying to flood the SM. Another way to call it is to create availability of loans. My interpretation is not one of doom. I think that SS wants to be prepared for new lenders. Think in terms of changes of name mentioned in another thread. Think in terms of removal of INPL due to FCA. etc.... How far do you think are we before SS gets full authorisation. When that happens, if and when SS releases an IFISA, it will need loans available for people who register in their new product to invest in. I get that, but my reaction to this batch being released just as I was hoping to see some movement on the SM is to look again at investing with SS. I'm not investing in anything at all now until it becomes clear where this is going, prefunding set to zero. I understand they need loans for people to invest in, but of course they also need investors. For the moment at least, they've lost what I suppose must be a fairly big hitter. The interest at the end of the month is not even going to cover the prefunding for this batch, let alone get the SM working. If they shove out another few million in loans next month, I think you might as well start making the assumption that investing is for the term of the loan with all the possible repercussions that brings with it. As said, some of these loans are simply not paying enough to take the risk of seeing them through to conclusion.
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r1200gs
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Post by r1200gs on Mar 29, 2017 6:20:46 GMT
You shouldn't invest expecting the SM to bail you out. You should only invest funds you know you won't need for at least the term (and that you can afford to loose) and expect to hold to term (and is why DD is required on all investment) Recent events have contributed to the illiquidity but it is nothing new; SS have had bouts of illiquidity in the past, and it will in the future I don't remember seeing it like this, Dude. But then perhaps I'm just more acutely aware because it's effecting me this time?
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Post by onion12 on Mar 29, 2017 6:43:10 GMT
Don't forget there will be many people that are moving money out to put into there flex cash isa that would be helping to block the sm
i must admit I am part of that crowd of people
maybe anyone that thought they would leave it till Sunday needs to go to plan B
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Post by jackpease on Mar 29, 2017 6:43:55 GMT
It seems to me that we are seeing a balance and an entirely rational secondary market - after years of unsustainable liquidity.
Those that fear ever-reducing interest rates should welcome this - SS must see that there is a bottom limit.
Lenders must now see that they have to take responsibility for what they put their money into - a system where people were blindly investing in negative loans was clearly perverse. Defaults are just a feature of P2P lending rather than a failing.
But all that said I reckon the secondary market will clear as in the end, proposed redesign apart, SS still offers a fantastically simple, clear marketplace for higher interest, higher risk loans
JackP
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bg
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Post by bg on Mar 29, 2017 6:44:55 GMT
I have already mentioned in another thread that I noticed that SS is trying to flood the SM. Another way to call it is to create availability of loans. My interpretation is not one of doom. I think that SS wants to be prepared for new lenders. Think in terms of changes of name mentioned in another thread. Think in terms of removal of INPL due to FCA. etc.... How far do you think are we before SS gets full authorisation. When that happens, if and when SS releases an IFISA, it will need loans available for people who register in their new product to invest in. I get that, but my reaction to this batch being released just as I was hoping to see some movement on the SM is to look again at investing with SS. I'm not investing in anything at all now until it becomes clear where this is going, prefunding set to zero. I understand they need loans for people to invest in, but of course they also need investors. For the moment at least, they've lost what I suppose must be a fairly big hitter. The interest at the end of the month is not even going to cover the prefunding for this batch, let alone get the SM working. If they shove out another few million in loans next month, I think you might as well start making the assumption that investing is for the term of the loan with all the possible repercussions that brings with it. As said, some of these loans are simply not paying enough to take the risk of seeing them through to conclusion. I don't see the problem here. Net loans of £740k is peanuts in the scheme of things If 143 actually repays (big if) then the SM will be completely empty.
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r1200gs
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Post by r1200gs on Mar 29, 2017 6:54:10 GMT
I get that, but my reaction to this batch being released just as I was hoping to see some movement on the SM is to look again at investing with SS. I'm not investing in anything at all now until it becomes clear where this is going, prefunding set to zero. I understand they need loans for people to invest in, but of course they also need investors. For the moment at least, they've lost what I suppose must be a fairly big hitter. The interest at the end of the month is not even going to cover the prefunding for this batch, let alone get the SM working. If they shove out another few million in loans next month, I think you might as well start making the assumption that investing is for the term of the loan with all the possible repercussions that brings with it. As said, some of these loans are simply not paying enough to take the risk of seeing them through to conclusion. I don't see the problem here. Net loans of £740k is peanuts in the scheme of things If 143 actually repays (big if) then the SM will be completely empty. I hope you are right, you may well be. As I said to Dude, it may well be that I see things differently here because it's the first time I have allowed myself to be stuck with an iffy loan in a sales queue that's not moving. I'm on the side lines for now.
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