|
|
Post by supernumerary on Jun 13, 2017 12:59:56 GMT
Interest lost to lenders selling, is the Provision Funds gain...  Maybe this is their cunning plan. Save money by flooding the SM and use it to bail out the defaulted loans. It is probably an added bonus to their stated plan and aim, of increasing their amount of lending. Another bonus IMHO, is that it would appear, that the more loans there are on the secondary market, attracts more lenders, at a greater rate onto Saving Stream. 
|
|
dan83
Posts: 243 
Likes: 84
|
Post by dan83 on Jun 13, 2017 13:27:53 GMT
I think discounting loan or putting a premium on them is a stupid idea. I think the fair way is they way we have now, 1st person to sell a loan goes to the front of the que. I have quite a bit myself for sale on the secondary market stuck in big que's, I'm prepared to keep them there as long as it take. So you're happy to have 'quite a bit....stuck in big que's (sic)...as long as it takes', but would not want the opportunity to reduce the time to sale by offering at a discount even if a 1% discount saved you two months queuing? Being pedantic but it is not '1st person to sell a loan goes to the front.....' but actually first person to put a loan up for sale goes to the front, if you can see the ramifications of the subtle difference between these two statements you might understand why discounts (not premiums) would make the 'market' work. Yes, I'm more then happy to sit and wait my turn. I knew the T&C's when I signed up, if I didn't like them I wouldn't of invested any money. I'm not one to start whining when the market changes and the current T&C's no longer meet YOUR requirements. My advice to anyone would be, if you don't like the way the secondary market works, don't use it. Or you could come on like and moan to try and get it changed to how you want it to be.
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Jun 13, 2017 13:39:21 GMT
I think discounting loan or putting a premium on them is a stupid idea. I think the fair way is they way we have now, 1st person to sell a loan goes to the front of the que. I have quite a bit myself for sale on the secondary market stuck in big que's, I'm prepared to keep them there as long as it take. Much prefer Ly SM to MT where the tranches are listed separately & it's little more than pot luck which one a buyer chooses.
|
|
dan83
Posts: 243
Likes: 84
|
Post by dan83 on Jun 13, 2017 13:47:29 GMT
I try to stay away from MT, I like the loans, cars and I may of seen some painting on there but I find the website poorly designed, it's not as easy as lendy to use and the loans are few and far between. They do get a few renewals, which is better then doing nothing when a loan comes to an end like lendy.
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Jun 13, 2017 15:11:35 GMT
MT pretty monstrous too, you'll have no prob getting a couple of mill away |
|
nick
Member of DD Central
Posts: 1,056
Likes: 825
|
Post by nick on Jun 13, 2017 15:50:36 GMT
Lately I've been advocating for the introduction of premiums and discounts. I'm mildly surprised that the idea seems not very popular among lenders. And no comments from Lendy. One of Lendy's attractions is its simplicity. Premiums/discounts attracts the flippers, complicates your tax position (capital gains), and buying at a premium leads to the very real possibility of making a capital loss (i.e. negative yield) if the loan repays early. The problem with a simple at par secondary market is it only really work when loan demand and supply are fairly balanced. As soon as there is an significant imbalance, liquidity fails (liquidity in the sense of gross volumes transacted rather than simply ease/speed of sale). I view the primary purpose of the SM is to provide liquidity, and to that end, anything that removes barriers and increases liquidity is welcome, even if it makes the market more complex.........
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jun 13, 2017 16:05:44 GMT
What Lendy need most, if they're to deliver on their ambitious growth targets, is a steadily growing base of lenders keen to invest and to keep on investing. The current heavy overhang of older loans listed for sale, combined with the loud chorus of complaint from lenders grown accustomed to famine, not feast, does nothing to attract new lenders nor encourage existing ones to maintain and grow their stakes. That's why I'm convinced that measures to boost SM liquidity, in particular the option to discount parts for those wishing to jump the queue, will not be long in coming.
Assetz added the option to sell at a discount a year or more ago and only rarely are parts available there below par. However, the simple knowledge that the option exists seems to be enough to prevent the "stampede for the exit" we're seeing here currently.
|
|
spyrogyra
Member of DD Central
Posts: 386
Likes: 148
|
Post by spyrogyra on Jun 13, 2017 16:52:10 GMT
... and those who do wish to avoid the complexity of an SM of discounts or premiums, may well carry on buying at the primary market or at 0% and hold till term
|
|
archie
Posts: 1,866
Likes: 1,861
|
Post by archie on Jun 13, 2017 16:59:20 GMT
... and those who do wish to avoid the complexity of an SM of discounts or premiums, may well carry on buying at the primary market or at 0% and hold till term Anyone selling at a discount queue jumps in front of anyone selling at par. Those selling at par lose out on both their queue place and the interest lost because they queue longer (*). Current system is fair to everyone. * Clarification : That's interest lost because you wait longer before being able to reinvest the capital.
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Jun 13, 2017 17:36:55 GMT
... and those who do wish to avoid the complexity of an SM of discounts or premiums, may well carry on buying at the primary market or at 0% and hold till term Anyone selling at a discount queue jumps in front of anyone selling at par. Those selling at par lose out on both their queue place and the interest lost because they queue longer (*). Current system is fair to everyone. * Clarification : That's interest lost because you wait longer before being able to reinvest the capital. 'Fair' in the same sort of way that the pricing of everyday goods in Venezuela currently is - the prices are great, and you can have all the salt you want, but no potatoes. Edit: I imagine that should probably be tortillas, or rice perhaps, before i'm whipped with the pedant stick. Edit2: Investing in Lendy is a first world problem, with which not even trying to sell some of PBL081 can really be compared to the situation in Venezuela.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jun 13, 2017 18:02:51 GMT
... and those who do wish to avoid the complexity of an SM of discounts or premiums, may well carry on buying at the primary market or at 0% and hold till term Anyone selling at a discount queue jumps in front of anyone selling at par. Those selling at par lose out on both their queue place and the interest lost because they queue longer (*). Current system is fair to everyone. * Clarification : That's interest lost because you wait longer before being able to reinvest the capital. Which is why any discount steps must be significant. Assetz have a minimum discount of 1% (i.e. 1 month's interest on a 12% loan) and 1% steps thereafter. That way, someone wishing to sell ahead of others takes a minimum 1% hit and the buyer receives a worthwhile incentive. Discounted parts rarely hang around so there is little impact on others trying to sell at par.
|
|
skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
|
Post by skippyonspeed on Jun 13, 2017 18:13:52 GMT
Anyone selling at a discount queue jumps in front of anyone selling at par. Those selling at par lose out on both their queue place and the interest lost because they queue longer (*). Current system is fair to everyone. * Clarification : That's interest lost because you wait longer before being able to reinvest the capital. Which is why any discount steps must be significant. Assetz have a minimum discount of 1% (i.e. 1 month's interest on a 12% loan) and 1% steps thereafter. That way, someone wishing to sell ahead of others takes a minimum 1% hit and the buyer receives a worthwhile incentive. Discounted parts rarely hang around so there is little impact on others trying to sell at par. I believe it is 0.5% steps
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jun 13, 2017 18:36:33 GMT
Which is why any discount steps must be significant. Assetz have a minimum discount of 1% (i.e. 1 month's interest on a 12% loan) and 1% steps thereafter. That way, someone wishing to sell ahead of others takes a minimum 1% hit and the buyer receives a worthwhile incentive. Discounted parts rarely hang around so there is little impact on others trying to sell at par. I believe it is 0.5% steps I think you're right. There's rarely anything offered beyond 1% discount anyway.
|
|
|
|
Post by reeknralf on Jun 13, 2017 18:52:03 GMT
... and those who do wish to avoid the complexity of an SM of discounts or premiums, may well carry on buying at the primary market or at 0% and hold till term Anyone selling at a discount queue jumps in front of anyone selling at par. Those selling at par lose out on both their queue place and the interest lost because they queue longer (*). Current system is fair to everyone. * Clarification : That's interest lost because you wait longer before being able to reinvest the capital. So if we both want to sell identical cars, and you advertise yours cheaper than me this is unfair? ISTM you just want to sell loan parts for more than the market deems them to be worth. You should come to France. I'm always befuddled by sellers at the market who prefer to take home hundreds of kilos of unsold melons rather than lower the price.
|
|
p2p2p
Member of DD Central
Posts: 123
Likes: 114
|
Post by p2p2p on Jun 13, 2017 19:21:44 GMT
When I see a loan part offered at a 1% discount, I smell rotten fish. But then I also do if the %age on sale is too great too. It would be handy if LL quoted the sale queue as a % of the loan, as some other sites do, and then I'd reassured that only 5% wanted a new home.
I don't like discounts/premiums as I don't want to be a trader, I want to sell if for what I paid for it.
|
|
