Saving Stream now an illiquid monster...

I've been with SS since they started in late 2013. They did start off with boat loans but I think this simply wasn't scalable to the sort of volumes that would generate decent profits. So like many a P2P platform they moved into the higher risk end of bridging. From the founding director's resumes it's never been clear to me that that either of them had huge experience with lending on any asset class, including property. One of them has an IT background. The other does have more of a finance background. I assumed he founded SS after his role as an investment director at Portland Financial Management was lost (I think the company collapsed amid regulatory probes and debts after being associated with the Axiom Legal Financing fund fraud). 

With regard to defaults on SS, I have already stated my view than any loan that goes over it's contractual period is in default. That is the definition of default. However, given SS take typically an extra 0.5%/month on each loan, above what is paid out to lenders, we can be reasonably happy that there is further coverage for a term 50% greater than the formal term of the loan. The question is then how many loans are accelerated on (i.e formal recovery action is initiated). My experience (15 years of higher risk bridge lending as a private investor in a syndicate, not as a professional) is that around 10% of loans went to formal recovery. So 20% would be very poor especially since my 10% number includes the 2007/09 period.  

Sorry yangmills , I don't quite understand how Lendy, by charging half a percentage point extra, is able to generate 50% 'further coverage'.

Perhaps you mean (as is probably the case) that Lendy charge borrowers 18% when the investors are paid 12%. Then I could understand the 50% you speak of.

However, the margin difference (plus a few other borrower fees) has to pay for the entire Lendy operation including wages, bonuses, pay-outs to cover defaults, advertising, sponsorship and everything else. Therefore: even charging 18% and paying 12% is unlikely to generate 'further coverage' of 50%.

If I am missing something and there is as much as 50% extra then I will be very pleased!

I have just been an idiot and misread 0.5% per month as per year!

Okay... some of my arguments are correct so that the 6% per year cannot materialise as 50% 'further coverage'.

Please accept apologies and my 'dumb score' for today is very high!

In my (poor) defence... the wine I have been drinking is particularly good.

I have been away for a while and so I thought I would increase my lending with Lendy! I took one look at the SM and decided against it!! What's happened??? I go away for a few weeks and everything falls to pieces!!! Lendy really need a few loans to repay very soon. I sincerely hope they haven't overstretched themselves by offering more loans than there are investors!! Or maybe they need to improve their DD. After doing a bit of investigation myself some of the borrowers look decidedly dodgy, and I'm rather surprised that Lendy would even consider giving them our money!! I know Lendy can default the loan but too much of that could dent investor confidence. It would certainly dent my confidence! Hello 'Moneything'. Here I come!!

Agreed.

Up until a few months ago, the loans I wasn't touching were few and far between.
Now? The ones I will touch are few and far between. My loan spreadsheet is turning more and more amber (Sell soon), with more and more orange (Next in line to go). Green (buy) is few and far between.



Again, agreed. It's a vicious circle of loss of confidence. Even previously rocking-horse loans are lingering. I'm a little less optimistic about repayments, though. Last month's interest didn't do much, nor did the over £6m in loans repaid during May... The updates promise to bring ever more loans towards closure, yet relatively few ever seem to get there.

Defaults now at £20,327,500 (12.32%) and another £2,940,000 imminent.