grahamg
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Post by grahamg on Jun 2, 2017 16:32:49 GMT
There wasn't much change in the SM on the last interest day - there was a bit of a churn, but quickly replaced by others adding to the list LY need more investors - they have reached saturation point, and the knock on effect is others looking to move money. I honestly think the lower rates have had an effect - yes the loans fill, but investors are realising that they are getting a raw deal, and possibly feel a bit cheated; other platforms carry more trust and, when the opportunities arise (and there are several out there), investors are more likely to move their money to these platforms It is my opinion that LY needs to offer loans at a fair rate that represents the risk. That doesn't mean all 12% (although, if you ask me, that was a very good selling point LY have now lost), but simply means not trying to fool investors with applying rates against size. Once again - yes, these loans fill - but there is a wider issue with trust that has far-reaching effects Just my 2 cents worth on the situation Well AC have £5.8m on the SM available mostly 7-8% loans so saturation, disinterest, dissatisfaction, and money wanting to leave there as well. even MT have a small SM list that's not going away. The P2P market seems to have saturated generally, little new money and existing investors finding it difficult to move money around. Hold to redemption for now! DFL025 still has £334000 0f unsold parts DFL012 has £168000 at 12% In that context trying to make out that 7-8% is a good deal is a platform disaster.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Jun 2, 2017 17:10:46 GMT
I will not invest in any new loans until L allow the SM to shrink drastically, before signing up any new ones especially the lower rate loans, that are looking more risky now with less reward. I hate FFF, but think the cycling from feast to famine made me feel far more confident with P2P than I feel at the moment.
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dan83
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Post by dan83 on Jun 2, 2017 17:12:49 GMT
I put £9000 worth of loan parts up for sale at 12:05 Wednesday night/Thursday morning, some sold straight away, most had gone by time I got up for work (6am) and now it's all gone apart from 2 loan parts totalling £700.
I wouldn't say the secondary market is that bad at the moment.
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mary
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Post by mary on Jun 2, 2017 17:30:55 GMT
There wasn't much change in the SM on the last interest day - there was a bit of a churn, but quickly replaced by others adding to the list DFL025 still has £334000 0f unsold parts DFL012 has £168000 at 12% In that context trying to make out that 7-8% is a good deal is a platform disaster. Agreed. It is clear that the larger loans are harder to shift as more investors are already at their limit for those loans.
However, as more new low rate loans flood in, I think the 12% ones will still move eventually, especially as most (all?) repayments will be of 12% loans.
May was a sparse month for repayments, but when they came the SM moved faster for the 12% loans.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Jun 2, 2017 17:54:41 GMT
DFL025 still has £334000 0f unsold parts DFL012 has £168000 at 12% In that context trying to make out that 7-8% is a good deal is a platform disaster. Agreed. It is clear that the larger loans are harder to shift as more investors are already at their limit for those loans.
However, as more new low rate loans flood in, I think the 12% ones will still move eventually, especially as most (all?) repayments will be of 12% loans.
May was a sparse month for repayments, but when they came the SM moved faster for the 12% loans.
All my loan parts are 12% with at least 120 days before default, and I have never had to wait more than a couple hours to sell parts, I put 5 parts up for sale on the 25/5 and 3 of them remain unsold Q lengths are still 52k 125k & 160k!!!! L need to throttle back new loans if they can't attract a LOT more new investors, or more people will become disillusioned which will make matters worse.
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Post by Deleted on Jun 2, 2017 19:51:49 GMT
The demand is there for semi-decent loans, they are moving.
The main problem is, there seems to be an absolutely monstrous overhang of supply atm. Some chunky repayments would be nice...
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Post by df on Jun 2, 2017 23:24:59 GMT
The demand is there for semi-decent loans, they are moving. The main problem is, there seems to be an absolutely monstrous overhang of supply atm. Some chunky repayments would be nice... It certainly doesn't help if supply exceeds demands. In this particular case it is escalating, which begs the question - will SS/Ly be still trading in 442 days time? I don't know what their plan is, but if they want to continue they should gain lender's confidence by focusing on repayments instead of flooding platform with new 7-10% loans.
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Post by p2plender on Jun 3, 2017 1:05:03 GMT
The demand is there for semi-decent loans, they are moving. The main problem is, there seems to be an absolutely monstrous overhang of supply atm. Some chunky repayments would be nice... It certainly doesn't help if supply exceeds demands. In this particular case it is escalating, which begs the question - will SS/Ly be still trading in 442 days time? I don't know what their plan is, but if they want to continue they should gain lender's confidence by focusing on repayments instead of flooding platform with new 7-10% loans. And that's the concern. Why are Lendy not listening to their investors and simply flooding the pipeline? Perhaps flood the pipeline once the repayment line is being flooded..
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elliotn
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Post by elliotn on Jun 3, 2017 3:48:47 GMT
It certainly doesn't help if supply exceeds demands. In this particular case it is escalating, which begs the question - will SS/Ly be still trading in 442 days time? I don't know what their plan is, but if they want to continue they should gain lender's confidence by focusing on repayments instead of flooding platform with new 7-10% loans. And that's the concern. Why are Lendy not listening to their investors and simply flooding the pipeline? Perhaps flood the pipeline once the repayment line is being flooded.. Possibly they feel the need to generate the fee income necessary to address the other end of the book.
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GeorgeT
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Post by GeorgeT on Jun 3, 2017 11:38:20 GMT
A very big repayment is needed next week or else 2 or 3 smaller repayments.
Confidence and love for the platform is slipping away like water from a bucket with a hole in the bottom.
As I have said before everything can turn with the blink of an eye in these situations but it is getting critical now because some investors are starting to talk with their feet.
We need to see repayment monies coming back to the platform next week. We need to see a suspension of the pipeline for one week to allow the effect to filter through. And then we need to see a return of new, high quality loans at 12% to rebuild some of the trust that has been lost this year and last.
If I can sum it all up with a metaphor, I would say the music hasn't stopped but we've got a 45 rpm single going round at 33. Lendy need to flick the switch to the correct speed so the music starts sounding like it should.
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Liz
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Post by Liz on Jun 3, 2017 12:33:44 GMT
As has been said a thousand times, be prepared to hold to term. And that term could be two years from now.
As for the not flooding the pipeline, with 30 odd thirsty DFL's in progress needing £30/£40million (who knows how much), then the flooding will continue for a long time to come. L needs lots of new loans because it has lots of mouths to feed, not to mention the need to replenish the PF.
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archie
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Post by archie on Jun 3, 2017 12:44:22 GMT
As has been said a thousand times, be prepared to hold to term. And that term could be two years from now. As for the not flooding the pipeline, with 30 odd thirsty DFL's in progress needing £30/£40million (who knows how much), then the flooding will continue for a long time to come. L needs lots of new loans because it has lots of mouths to feed, not to mention the need to replenish the PF.FCA don't like provision funds so it seems likely this will disappear eventually.
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dermot
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Post by dermot on Jun 3, 2017 13:00:31 GMT
So long as the provision fund isn't used to generate a false sense of security, I don't have too much of a problem with them - it is when the marketers / advertising copy people start running away at the mouth that trouble starts ... I'd prefer it if the FCA came down harder on the use of crappy valuations, then PFs wouldn't be quite such an issue anyway. Are those unhappy with PFs in general happy with the practice of platforms taking, say, 3 months interest up front to cover the occasional late / missed payment?
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Liz
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Post by Liz on Jun 3, 2017 13:13:59 GMT
As has been said a thousand times, be prepared to hold to term. And that term could be two years from now. As for the not flooding the pipeline, with 30 odd thirsty DFL's in progress needing £30/£40million (who knows how much), then the flooding will continue for a long time to come. L needs lots of new loans because it has lots of mouths to feed, not to mention the need to replenish the PF.FCA don't like provision funds so it seems likely this will disappear eventually. I'm surprised the PF didn't go about 6 months ago. SBL, using L reserves to fund interest is another surprise.
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GeorgeT
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Post by GeorgeT on Jun 3, 2017 13:47:06 GMT
I support the scrapping of the PF. I agree with the FCA's position on this. When I was a naive newbie and saw the words 'Provision Fund' it made me more likely to invest. That is/was wrong and I agree misleading.
What disappoints me a little is that LY were apparently paying 2% into the PF. Now that has stopped there is no evidence they are being a little more generous to investors to compensate for loss of that fund and that marketing angle.
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