Saving Stream now an illiquid monster...

You all spend a considerable amount of time paying attention to and talking about something you dont agree with and try to ignore.

Yup, this is a new record high, excluding defaults this is a record and for total on market including defaults this is another record. I don't think that this is a record percentage though, as the total on the platform was lower in June 2016, but it is probably pretty close.

(I'm meaning from the figures I've seen, pre May 2016 I wasn't tracking data! )

Can someone please confirm how putting a sale on the SM works with regards to gaining/losing interest? There seem to be multiple explanations and none seem to stick out as the definitive answer. Is it the case that you place a part for sale and:

1) You lose interest from the moment you place it for sale, and regardless of what you do after.
Or
2) You lose the interest only at the end of the month if it doesn't sell (unless you cancel before that, in which case you then keep all the interest while it was still for sale during that calendar month)
Or
3) You lose interest each DAY it is for sale (unless you cancel before midnight each day) 

Could you please clarify which one of above is true or false?

Many thanks

Hi all, and another lively thread covering a number of related topics. I have been following , but sorry not had time this past week to comment. 

First, as per my previous correspondence, the Provision Fund is very much in place (and healthy) but please, please do not use it as a 'get out of jail free card.' It is there to provide a level of security, but it should not (must not) be used in place of doing your own homework and selecting the best investments that suit your risk profile. If you are unsure about your risk profile please see an independent financial adviser who will not only assess your appetite for risk, but will also help you understand your, arguably, more important, capacity for loss (CFL). This is a useful paper on CFL - www.fca.org.uk/firms/assessing-suitability

On the wider theme, I tend to agree with some of the comments that cooling dude (we've had our disagreements I know, but I often respect his analysis) has made over recent times.

Investing in property, either direct as a developer or as a landlord, by buying a property to let, by investing via a property investment fund, or vis P2P, can be either the smartest investment you can make, and a nice, regular income earner, or full of frustration, suited only for experienced investors. The truth, normally, as with so many things in life, is somewhere in the middle.

Investing in property is for the longer term. I would always encourage Lendy investors to hold to term (that is not advice but just how the platform is designed. But if in any doubt consult an IFA).  Yes we offer a dynamic secondary market, but as with all investment that carries a degree of illiquidity, like property, it can take time to sell if supply and demand becomes imbalanced. Major high street brands have introduced policies prohibiting investors from selling their assets, when illiquidity is high. 

Historically, loan parts with Lendy have sold very quickly, but as we have originated new loans (now worth close to £320m) to support the growth in investors to over 16,000, there have been times when the secondary market has experienced periods of illiquidity. That is normal. No different than BTL, being locked into commercial property funds when a major brand enforces a ‘no- sell’ policy, or P2P.

Property is less liquid than many other investment vehicles. It takes time to design, build, market, rent and sell it.  And even though property has proved the most resilient asset class over the past 100 years,  property prices and demand for property inc. rental values can – and do – go up and down. And this is where I agree with cooling dude - direct and indirect property investments are for the long term. Property investment is all about being patient. If you’re willing to wait, you can ride out a sluggish secondary market, and look to earn profits/income over time. If the risks are too high for you, please don't invest in the first place. Yes, 10% + annual returns are attractive, but not if you are extremely risk averse. 

Best guidance is don't be over-invested in property (or any asset class) as you might end up in trouble when housing markets slow. None of us know what will happen after the Election, or with Brexit. But as one of the main four investment assets, no good independent adviser would ever say that you shouldn’t have any exposure to property. A diversified portfolio is something I have managed for a long time, and in my view it is the best strategy when markets, sectors and economies are so unknown, particularly in light of Brexit.

I am not on this forum to say invest with Lendy (even though the job I was employed to do may make you think that). But I do think we have a very good track record of looking after our investors, and we are the fastest growing and one of the most profitable P2P platforms in the market today.

As I have said before, we value all of our investors, but if you prefer a different model to ours, you are of course very free to go elsewhere. But if you do think that there is a better place for your money, all I would ask is that you drop me a private message so that I can do what I can to keep you as a valued investor. Best wishes, Paul

Ps, this is a useful article, whether you invest in property via P2P platforms like Lendy or through funds or renting out - www.moneyadviceservice.org.uk/en/articles/investing-in-property
 

/mod hat off

Yeah cooling_dude, and no dig specifically at Lendy here, but I doubt there's a single P2P platform that can tick all of those boxes.  One reason being that P2P still lives in a regulatory grey zone.

I don't have it immediately to hand but over the last couple of years there have been a number of comments from Saving Stream aka Lendy along the lines of "the secondary market is not there for x, but for y....".  It would be interesting to contrast those statements with the current reality and to keep it in mind when considering what Lendy has to say now.

My position is similar to others, I still have funds with Lendy, but they have decreased over time, and also decreased in terms of the size of my overall P2P portfolio.  Lendy don't need to hire a bunch of rocket scientists to understand how to reverse that.