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Post by chrisuk on Sept 29, 2017 15:42:48 GMT
I have also lost faith in the platform. Too many defaults for my liking. I'm debating whether to wait until my loans mature and cash out, or try my luck selling on the SM. I fear I will have a long wait with either method!!
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Post by loftankerman on Sept 29, 2017 15:44:53 GMT
I was buying them yesterday. Selling them on today. I can't understand why you would do that, unless of course you just like playing the CAPTCHA game they let you have a go at. 
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Post by keyboardworrier on Sept 29, 2017 15:49:12 GMT
I've also started my exit from Lendy, I regretted getting involved with it quite early on, however it did have quite a lot going for it - massive diversification with little effort for one but it's not for me any more. I'll stick to MoneyThing and Collateral for these types of loans.
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Jeepers
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Post by Jeepers on Sept 29, 2017 16:00:22 GMT
So this week we’ve learned:
DFL1 - suspended looking like a loss
DFL2- Also suspended and looking like a loss
PBL 155- SAME!
But hey at least the directors are laughing as their profits soared to £2.6m. Let’s hope they use it to keep the PF topped up!
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Post by scrooge on Sept 29, 2017 16:02:57 GMT
I fortunately shifted the bulk of my loans over the Summer. I'm now left with a few DFLs which I think should come right - save Exeter - and too much in that Welsh Ponzi scheme.
I expect to see them go the way of FK early next year......
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yangmills
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Post by yangmills on Sept 29, 2017 16:50:37 GMT
I think this thread has become obsolete. We need a new thread titled "SS now a default monster ...". In 2015-16, SS was very proud of their growth in origination volumes. In 2017 they seem to be demonstrating a market-leading growth in defaults. You could almost conclude that one might inevitably lead to the other.
And I suspect many still believe that you don't need variable pricing for property loans. Par is always "fair value", right?
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hazellend
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Post by hazellend on Sept 29, 2017 16:58:57 GMT
I'm still adding when good loans become available. I am very wary of stupid valuations but I think Lendy may have learned their lesson.
I have been fortunate to be out of any defaulting loans.
I admit to a soft spot for certain borrowers that use the platform
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dovap
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Post by dovap on Sept 29, 2017 18:36:31 GMT
think I'd be more surprised by a decent number of defaults repaying anywhere near their 'value'
than I would be by the platform going kaput
they can keep their new loans tyvm
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Post by gent2012 on Sept 29, 2017 19:55:22 GMT
And Lendy's response - fail fast and swivel (actually pivot, but we all know what they meant) Yesterday I actually went backwards in the sales queue on a DFL and a PBL. How can that happen? I listed my modest investment in Exeter R**** some months ago and watched as the sale queue slowly dropped from £50 000 to a reasonable £6 000 - then Lendy decided to dump £40 000 of unsold loan on to the SM and the queue jumped back up to £46 000, unsurprisingly. I've now asked three times for the justification, but this has been somewhere between odd and non-existent - "Can you please advise how the sale queue for the two parts of my Exeter R**** C**** Development that I have put up for sale (ID 458134 and 497264) have each jumped by £40000 overnight? It's difficult enough to sell on the secondary market at present and annoying to lose the interest on each loan while waiting for a buyer. This has already led me to consider my future Lendy investments." Response 1 13/09/17
We are aware of this issue and it is currently under investigation. Please accept our apologies for any inconvenience.Response 2 21/09/17
If a new loan or tranche does not fully fund, the loan will appear above loans parts that have already been put up for sale by investors on the Available Loans (Secondary market) page.
Existing loan parts for sale on the secondary market will currently be put on hold in order to ensure the availability of new loans or additional development tranches are completely funded prior to existing sales occurring. Once the newly available loans are 100% filled, then the previous loan parts owned by investors that were currently for 'For sale' will then be eligible to be sold.
Investors may therefore appear to move backwards in the queue when these changes were applied to the platform on 1 September 2017.
Response 3 25/09/17
It is the implementation of the new policy to adhere to our regulatory responsibilities in not providing credit to cover shortfalls.
Once you have invested in a loan on the Platform, your invested capital becomes due and repayable to you only at the end of the loan term, unless you utilise the Secondary Market. Selling a loan part on the secondary market relies on another investor buying that loan part. Although loan parts can sale within days, we cannot guarantee timescales or delays.
Even though we communicated the change was effective from 1st September, our development team finalised these changes shortly thereafter.
I'm not sure any of the responses actually answered my question - maybe, that's the idea....
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Post by GSV3MIaC on Sept 29, 2017 20:43:21 GMT
Since they're stubbornly resisting discounting, for obvious reasons, maybe they'll let lenders offer cashback the same way that they can? 8>.
Despite Cowes (aka a load of old bull) it seems they are not managing to attract new lenders fast enough to keep up the the bottomless DFL demand-pit (and making it possible for existing lenders to bail out is well down the priority list).
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Post by charliebrown on Sept 30, 2017 0:56:51 GMT
Since they're stubbornly resisting discounting, for obvious reasons, maybe they'll let lenders offer cashback the same way that they can? 8>. Despite Cowes (aka a load of old bull) it seems they are not managing to attract new lenders fast enough to keep up the the bottomless DFL demand-pit (and making it possible for existing lenders to bail out is well down the priority list). When I came to Lendy or Saving Stream as it was then called there were some decent looking loans and only one default, the Garden Centre. The SM was red hot and you could trade in and out of loans easily. It was paradise. Fast forward to Lendy’s current position and it looks like a total meltdown. It’s a disaster zone. Lendy must have the highest amount of bad debt of any platform. I just looked at BondMason stats page and their bad debt is 1.3% which in theory should represent an industry average. As has been discussed, Lendy is 25%+ bad debt and growing all the time. Can the platform survive this? Let’s say British Airways lost 1 of every 4 suitcases that were checked in, would people still fly with them.
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mikes1531
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Post by mikes1531 on Sept 30, 2017 2:57:25 GMT
As has been discussed, Lendy is 25%+ bad debt and growing all the time. Can the platform survive this? Is it time to dig into the history books and read about what happened at Yes Secure? (I think that's the relevant platform.)
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mikes1531
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Post by mikes1531 on Sept 30, 2017 3:02:20 GMT
I too have lost faith..... Have sold everything that will sell except a couple of bits of DFL's which have huge queues - I have more faith in these as projects than a lot of other loans. I also hold some Exeter but fortunately only in the low 00's  I'm in a similar position, except that I haven't bothered to sell out of the loans that I could exit quickly because they represent such a small part of my total portfolio. My biggest concern with the DFLs that appear to be sound projects is... what happens if Lendy can't fund future tranches whenever they're needed? Would they be penalised for such a failure? And how easily can developers arrange alternative finance that allows them to carry on with their projects?
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Post by charliebrown on Sept 30, 2017 7:32:58 GMT
As has been discussed, Lendy is 25%+ bad debt and growing all the time. Can the platform survive this? Is it time to dig into the history books and read about what happened at Yes Secure? (I think that's the relevant platform.) I have just read up about what happened at Yes Secure. Their bad debt had reached 17.8% and they decided to close their platform. Depending on how you measure it, Lendy is above that bad debt ratio. In theory as long as sentiment stays strong the platform can survive bad debts, but in practice Lendy’s poor performance coupled with the poor attitude shown to investors then I’d expect repercussions. There’s already a lot of people on this forum who are winding down their Lendy investment. Worrying times.
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greeb
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Post by greeb on Sept 30, 2017 7:50:20 GMT
CAVEAT EMPTOR and growing pains. I built up a large for me portfolio in the good old days and sold down to zero a couple of months ago taking sm liquidity opportunities when I could. Now have rebuilt with loans I am confident with to a sensible platform risk cap. Lendy has had a massive job on its hands to build a recovery team with the almost inevitable scale of defaults given their growth rate. Their underwriting and valuation standards are much improved. The information has been there for all to see. I was out of Somerset office within hours of the news about the country rogue surfacing. it is disappointing and frustrating if you are stuck in default loans but the earlier situation where it was an instant access 12% saving account was unhealthy and sucked in those who should not be investing here. Recoveries will take a while and dent returns but the basic premise of asset based lending remains sound.I may be wrong but I don't see any capital losses in prospect that seriously threaten the platform or a sensibly diversified portfolio.there is a lot of extend and pretend going on elsewhere. Pick the right loans by doing sensible due diligence, keep an eye on things every day and stop burying The secondary market in an avalanche of wailing because you didn't do this in the first place.
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