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Post by wiseclerk on Jun 22, 2017 16:16:02 GMT
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mary
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Post by mary on Jun 22, 2017 16:25:39 GMT
Seems to me that the size of loans on offer on the SM is influenced by several factors...
1. Uncertainty due to political environment, last year we had that EU vote that led to lots of worries and the SM spiked to £4m as I recall, and we now have more political uncertainty after the election.
2. Repayments. These often recycle into the SM reducing its size. In fact last June/July 9 loans repaid £14m and the SM was soon reduced to zero. This month there has been a total of 1 repayment of just £400k!
3. New loans being released. As we know the volume of new loans has increased substantially as Lendy focuses on growth.
Therefore if Lendy can up the repayments to anywhere near the recent average, and resolve a few more of the defaults, I predict a prompt return to famine on the SM.
Obviously the longer this takes the more people may have given up and moved to other platforms!
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toffeeboy
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Post by toffeeboy on Jun 22, 2017 17:18:04 GMT
Seems to me that the size of loans on offer on the SM is influenced by several factors... 1. Uncertainty due to political environment, last year we had that EU vote that led to lots of worries and the SM spiked to £4m as I recall, and we now have more political uncertainty after the election. 2. Repayments. These often recycle into the SM reducing its size. In fact last June/July 9 loans repaid £14m and the SM was soon reduced to zero. This month there has been a total of 1 repayment of just £400k! 3. New loans being released. As we know the volume of new loans has increased substantially as Lendy focuses on growth. Therefore if Lendy can up the repayments to anywhere near the recent average, and resolve a few more of the defaults, I predict a prompt return to famine on the SM. Obviously the longer this takes the more people may have given up and moved to other platforms! Very true Mary, add to that several 12%+ loans on other sites that have been available which would add to the size of the SM as well as people move to take advantage of opportunities elsewhere in the P2P world.
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twoheads
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Programming
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Post by twoheads on Jun 22, 2017 17:41:36 GMT
A thought - rather than an explicit lender-selected discount (with all the issues that this creates in such a low-volume market), what if the accrued interest that a seller forfeits were instead credited to the buyer(s). Assuming this is visible (or at least fairly well-known), this would presumably create additional demand for loans that have had parts on sale for a long time, thereby reducing the difference between "short" and "long" queues (making "rare" loans easier to buy, as some buyers would avoid them because there's no accrued interest associated with the loan parts for sale, and "common" loans easier to sell within a reasonable amount of time, because some buyers will actively seek them in order to get additional interest "for free"). Nice idea... first time I've heard it. You buy a £1k loan part that's been on sale for a month and get a £10 bonus... sweet! [assuming 12% loan.]
It would certainly add liquidity to the SM but I cannot imagine Lendy forfeiting the benefit of the unpaid interest, especially when it amounts to £80k per month at present.
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guff
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Post by guff on Jun 22, 2017 21:01:29 GMT
A thought - rather than an explicit lender-selected discount (with all the issues that this creates in such a low-volume market), what if the accrued interest that a seller forfeits were instead credited to the buyer(s). Assuming this is visible (or at least fairly well-known), this would presumably create additional demand for loans that have had parts on sale for a long time, thereby reducing the difference between "short" and "long" queues (making "rare" loans easier to buy, as some buyers would avoid them because there's no accrued interest associated with the loan parts for sale, and "common" loans easier to sell within a reasonable amount of time, because some buyers will actively seek them in order to get additional interest "for free"). Nice idea... first time I've heard it. You buy a £1k loan part that's been on sale for a month and get a £10 bonus... sweet! [assuming 12% loan.]
It would certainly add liquidity to the SM but I cannot imagine Lendy forfeiting the benefit of the unpaid interest, especially when it amounts to £80k per month at present.
You could afford to employ a lot of marketing & communications experts with that.
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Post by Companion Cube on Jun 22, 2017 21:11:49 GMT
Seems to me that the size of loans on offer on the SM is influenced by several factors... 1. Uncertainty due to political environment, last year we had that EU vote that led to lots of worries and the SM spiked to £4m as I recall, and we now have more political uncertainty after the election. 2. Repayments. These often recycle into the SM reducing its size. In fact last June/July 9 loans repaid £14m and the SM was soon reduced to zero. This month there has been a total of 1 repayment of just £400k! 3. New loans being released. As we know the volume of new loans has increased substantially as Lendy focuses on growth. Therefore if Lendy can up the repayments to anywhere near the recent average, and resolve a few more of the defaults, I predict a prompt return to famine on the SM. Obviously the longer this takes the more people may have given up and moved to other platforms! Very true Mary, add to that several 12%+ loans on other sites that have been available which would add to the size of the SM as well as people move to take advantage of opportunities elsewhere in the P2P world. Although the paradox there is that if they were able to sell up and go elsewhere then maybe things weren't so bad.
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Post by df on Jun 23, 2017 0:38:03 GMT
Seems to me that the size of loans on offer on the SM is influenced by several factors... 1. Uncertainty due to political environment, last year we had that EU vote that led to lots of worries and the SM spiked to £4m as I recall, and we now have more political uncertainty after the election. 2. Repayments. These often recycle into the SM reducing its size. In fact last June/July 9 loans repaid £14m and the SM was soon reduced to zero. This month there has been a total of 1 repayment of just £400k! 3. New loans being released. As we know the volume of new loans has increased substantially as Lendy focuses on growth. Therefore if Lendy can up the repayments to anywhere near the recent average, and resolve a few more of the defaults, I predict a prompt return to famine on the SM. Obviously the longer this takes the more people may have given up and moved to other platforms! It is 19 defaults at £23,267,500 total capital at the minute. PBL 074 (£322k borrowed for divorce settlement) is just about to reach it first anniversary of failure to pay it back. I hope their divorce went well... Latest update: "Our agents are taking advice as to which auction this property is most suitable for, with a view to achieving the highest possible sale price. We have imposed an auction back-stop date of August to enable repayment to be made as soon as possible." - it takes SS/Ly a year for their agents to start taking advice on auctions. At this speed, I can't see 'return to famine' in foreseen future. Lendy's focusing on growth by introducing new 7%-to-lenders loans and releasing new tranches for existing projects (£813,860 of DFL012 on SM now - they couldn't fill it up) sounds more like a potential disaster.
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mary
Member of DD Central
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Post by mary on Jun 23, 2017 6:22:16 GMT
Seems to me that the size of loans on offer on the SM is influenced by several factors... 1. Uncertainty due to political environment, last year we had that EU vote that led to lots of worries and the SM spiked to £4m as I recall, and we now have more political uncertainty after the election. 2. Repayments. These often recycle into the SM reducing its size. In fact last June/July 9 loans repaid £14m and the SM was soon reduced to zero. This month there has been a total of 1 repayment of just £400k! 3. New loans being released. As we know the volume of new loans has increased substantially as Lendy focuses on growth. Therefore if Lendy can up the repayments to anywhere near the recent average, and resolve a few more of the defaults, I predict a prompt return to famine on the SM. Obviously the longer this takes the more people may have given up and moved to other platforms! It is 19 defaults at £23,267,500 total capital at the minute. PBL 074 (£322k borrowed for divorce settlement) is just about to reach it first anniversary of failure to pay it back. I hope their divorce went well... Latest update: "Our agents are taking advice as to which auction this property is most suitable for, with a view to achieving the highest possible sale price. We have imposed an auction back-stop date of August to enable repayment to be made as soon as possible." - it takes SS/Ly a year for their agents to start taking advice on auctions. At this speed, I can't see 'return to famine' in foreseen future. Lendy's focusing on growth by introducing new 7%-to-lenders loans and releasing new tranches for existing projects (£813,860 of DFL012 on SM now - they couldn't fill it up) sounds more like a potential disaster. I meant a famine on the prime SM, excluding the default tab. I can't see why anyone would ever buy these. If there was an incentive to buy a default loan such as a higher rate of interest, then maybe there would be a reason, although obviously that may never be achieved if recovery is less than full, and I would personally still avoid.
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sl75
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Post by sl75 on Jun 23, 2017 8:40:50 GMT
It would certainly add liquidity to the SM but I cannot imagine Lendy forfeiting the benefit of the unpaid interest, especially when it amounts to £80k per month at present. I'd guess it would improve the worst-case liquidity (for loans that are currently hard to shift), but for some loans that normally have decent liquidity in the current market, it may make the liquidity worse, as some potential buyers might start deciding "I won't buy anything without at least 1 week's accrued interest" or similar (depending on what's generally available for other loans). All academic when the market next swings back into a "famine" phase of course.
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Post by hobbitcz on Jun 23, 2017 10:33:57 GMT
New Weekly update really grand my gears! "Liquidity risk" my shiny robot a**. They can EASILY solve the situation, if they offer option to sell with discount on the principal making it much more attractive for the buyers - and making the whole platform much more attractive as well. They would not need "bring your friend" incentives. This is unacceptable, I can't think of any single P2P platform, where it is impossible to get your money back when you need them. Please complain to Lendy as much as you can and ask for the discount sell option. Hope they will realise what they did wrong.
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Post by lendinglawyer on Jun 23, 2017 10:39:17 GMT
New Weekly update really grand my gears! "Liquidity risk" my shiny robot a**. They can EASILY solve the situation, if they offer option to sell with discount on the principal making it much more attractive for the buyers - and making the whole platform much more attractive as well. They would not need "bring your friend" incentives. This is unacceptable, I can't think of any single P2P platform, where it is impossible to get your money back when you need them. Please complain to Lendy as much as you can and ask for the discount sell option. Hope they will realise what they did wrong. I can't think of a single platform where it is guaranteed to be possible. Which ones are you thinking of?
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mary
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Post by mary on Jun 23, 2017 11:14:08 GMT
New Weekly update really grand my gears! "Liquidity risk" my shiny robot a**. They can EASILY solve the situation, if they offer option to sell with discount on the principal making it much more attractive for the buyers - and making the whole platform much more attractive as well. They would not need "bring your friend" incentives. This is unacceptable, I can't think of any single P2P platform, where it is impossible to get your money back when you need them. Please complain to Lendy as much as you can and ask for the discount sell option. Hope they will realise what they did wrong. If you invested, then you agreed the T&Cs and saw the risks. I tried AC GBB Account, it even sounds like a bank account, however it took me 3 months to get 99.9% of my money out when I tried, there were two issues liquidity and defaults that made it take so long. RS has a sell out option, but it is still dependent on liquidity, And the charges are high. If you want certainty stick to NS&I.
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Post by petebutt43 on Jun 23, 2017 13:36:29 GMT
New Weekly update really grand my gears! "Liquidity risk" my shiny robot a**. They can EASILY solve the situation, if they offer option to sell with discount on the principal making it much more attractive for the buyers - and making the whole platform much more attractive as well. They would not need "bring your friend" incentives. This is unacceptable, I can't think of any single P2P platform, where it is impossible to get your money back when you need them. Please complain to Lendy as much as you can and ask for the discount sell option. Hope they will realise what they did wrong. If you invested, then you agreed the T&Cs and saw the risks. I tried AC GBB Account, it even sounds like a bank account, however it took me 3 months to get 99.9% of my money out when I tried, there were two issues liquidity and defaults that made it take so long. RS has a sell out option, but it is still dependent on liquidity, And the charges are high. If you want certainty stick to NS&I. Well done Mary. At last someone has laid this animal to rest. After 28 pages of drivel.
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elliotn
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Post by elliotn on Jun 23, 2017 14:36:42 GMT
New Weekly update really grand my gears! "Liquidity risk" my shiny robot a**. They can EASILY solve the situation, if they offer option to sell with discount on the principal making it much more attractive for the buyers - and making the whole platform much more attractive as well. They would not need "bring your friend" incentives. This is unacceptable, I can't think of any single P2P platform, where it is impossible to get your money back when you need them. Please complain to Lendy as much as you can and ask for the discount sell option. Hope they will realise what they did wrong. If you invested, then you agreed the T&Cs and saw the risks. I tried AC GBB Account, it even sounds like a bank account, however it took me 3 months to get 99.9% of my money out when I tried, there were two issues liquidity and defaults that made it take so long. RS has a sell out option, but it is still dependent on liquidity, And the charges are high. If you want certainty stick to NS&I. AC QAA may have been quicker. I've always withdrawn within a second. But even this 'quick access account' is layered in lending lawyerly language that means you could be tied up in multi-year loans so 3 months was pretty good going!
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GeorgeT
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Post by GeorgeT on Jun 23, 2017 15:53:51 GMT
I withdraw from the 30 day AC a/c after 30 days, and my QAA withdrawals have also been instant. I did try to get some money into the Green a/c once but it just sat there uninvested for several days and I gave up.
Liquidity is relative. We grew accustomed to SS/LY being like an instant access account when it was never designed to be, nor was it ever going to remain that way as the business grew. In fact, for most (not all - Castle being one example) loans , liquidity still compares quite favourably with some low interest building society a/cs. I've had to wait around 2 months to completely sell out of a few loans recently (DFL002 being one). But to put that into context, I have LPOA over my elderly mother's financial affairs and she has savings in several bank and building accounts, some of which she had tied up for 1/2/3 year terms to get a tiny bit more interest - and is getting 1.5% or 2% max interest for not having access for months/years, unless she accepts a penalty.
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