|
|
Post by onion12 on Mar 29, 2017 16:07:37 GMT
But presumably you still pay tax on the p2p interest? there are some things you just can't escape in life and tax is one of them but you can limit the damage
|
|
dzo
Member of DD Central
Posts: 158 
Likes: 150
|
Post by dzo on Mar 29, 2017 16:24:43 GMT
I do, yes. Lots of investors and their funds have moved on to pastures new since lower rates were announced. I know loads of forumites have said that - is there a way of comparing 'number of investors before' and 'after'? My suspicion is that some of have left, and many have joined, and I wonder if any forumite would admit to leaving and coming back having failed to get funds away on the likes of MT? Jack P I'm surprised by people who say they're moving to MT - 12% loans are even rarer there than they are on SS.
|
|
toffeeboy
Member of DD Central
Posts: 538
Likes: 385
|
Post by toffeeboy on Mar 29, 2017 16:34:48 GMT
Am I reading this correctly but the only people concerned are those who expect to be able to bin **** loans off on mugs whenever it suits them despite good loans also being available to said mugs? If that's the case, I know who the real mugs are... To add, if you have not been disposing of loans to less discerning punters, what does that make you? I would suggest, at the least, it suggests you have not been making very good use of SS. I can handle a loan taking a little longer to sell than I hoped it would, it had to happen eventually and should it become the norm, I'll adapt. Not wishing to get into a debate about who is a mug and who isn't, because I know full well I am (maybe not on P2P but in many other aspects of life), but it does need pointing out that as everyone has got their money back with all of the interest so far the mug is one who sells out early assuming they don't find another 12%+ loan to invest in, obviously this will change as soon as the first default loan doesn't return all of the capital and interest accrued.
Personally I am of the persuasion to only invest in loans that I am happy that the asset will cover the loan should the borrower default not to invest in everything and sell before the loan gets to a certain age but that is all down to personal choice.
|
|
|
|
Post by lendinglawyer on Mar 29, 2017 16:48:17 GMT
I got sick of MT pretty quickly. Volume is weak and when something
does come it is <12%. To me SS still represents the best balance so long as you invest only in the right loans after DD etc. and actively manage your portfolio. Hence I can't see myself pulling out or back materially any time soon. But if I didn't have the time and (I hope!) knowledge necessary I wouldn't touch it with a barge pole.
|
|
jcb208
Member of DD Central
Posts: 838
Likes: 638
|
Post by jcb208 on Mar 29, 2017 19:55:01 GMT
Savingstream did state in a recent article that they were going to try and treble lending this year,At this rate it will be very hard to liquidate older and lower rate loans at all
|
|
|
|
Post by GSV3MIaC on Mar 29, 2017 20:13:15 GMT
/mod hat off
But this is so NOT a surprise .. with sales only at par there are only two stable states of the SM - flooded and empty (the later with a big money queue waiting to enter). T'was always going to be that way, although the new 'three (or 4, counting DEF) grades of loan' may help slightly (an 'at par IA loan' is going to hang around longer than an at par IOA loan .. both moderated by the perceived risk vs rate values). SS can get new loans away by fiddling with the rate, cashback, or pipeline vs repayment balance, but not much they can do to help you sell an undesirable 7% SBL loan part, apart from clearing out every better option.
As someone said long time back, the SS SM was always an illiquid monster, since 'liquid' implies ability to both buy, and sell, on demand. With SS you have only ever been able to do one at once.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Mar 29, 2017 21:28:39 GMT
I must say it is frustrating to get to the front of the queue on a loan and then for sales to dry up.
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Mar 29, 2017 21:35:19 GMT
Bit early to judge and let's bear in mind that we are due an interest run on Saturday. Most investors (not me, but most I think) look to reinvest their interest so a £million or so could easily get wiped off the SM by next Monday.
This week we are seeing a relative glut of new loans which always has the effect of stalling the SM. I wasn't in any of today's but tomorrow we expect 2 new 12%ers to go live and I'm into both of those.
Meanwhile I have quite a lot stuck in sales queues on the SM but I'm expecting the interest run will have a laxative effect and start thing moving a bit.
I was reducing down towards exit from SS but lack of opportunities elsewhere has caused me to delay my exit. However I'm not wishing to up my stake on the platform (though may have to, temporarily, in order to pay for tomorrow's new loans.
My fear is the SS plan to grow their business massively. There's only so much funds about from SS investors and I do see a reduction in liqudity in the longer term.
For those who lack confidence in their loans and borrowers, it might prove a reality check. For 2/3 years it's been possible to buy into any old dross with confidence of being able to sell out before term end. That may be changing.
The need to pick carefully, do your own DD and avoid sub 12% loans with sub 100 day terms may become a new necessity for those who want to maintain near instant access to their cash.
|
|
averageguy
Member of DD Central
Posts: 1,188
Likes: 895
|
Post by averageguy on Mar 29, 2017 22:01:41 GMT
I got sick of MT pretty quickly. Volume is weak and when something does come it is <12%. To me SS still represents the best balance so long as you invest only in the right loans after DD etc. and actively manage your portfolio. Hence I can't see myself pulling out or back materially any time soon. But if I didn't have the time and (I hope!) knowledge necessary I wouldn't touch it with a barge pole. Very little on MONEYTHING is less than 12% ...a few are 10 or 11 and certainly not less
|
|
|
|
Post by lendinglawyer on Mar 30, 2017 1:17:47 GMT
I got sick of MT pretty quickly. Volume is weak and when something does come it is <12%. To me SS still represents the best balance so long as you invest only in the right loans after DD etc. and actively manage your portfolio. Hence I can't see myself pulling out or back materially any time soon. But if I didn't have the time and (I hope!) knowledge necessary I wouldn't touch it with a barge pole. Very little on MONEYTHING is less than 12% ...a few are 10 or 11 and certainly not less Of the recent loans 12% is diminishing. Going the way of SS, perhaps unsurprisingly given they are presumably direct competitors. Ok no 7% abominations (yet) but with such a low volume of new business it's barely worth the effort.
|
|
dzo
Member of DD Central
Posts: 158
Likes: 150
|
Post by dzo on Mar 30, 2017 7:14:55 GMT
I got sick of MT pretty quickly. Volume is weak and when something does come it is <12%. To me SS still represents the best balance so long as you invest only in the right loans after DD etc. and actively manage your portfolio. Hence I can't see myself pulling out or back materially any time soon. But if I didn't have the time and (I hope!) knowledge necessary I wouldn't touch it with a barge pole. Very little on MONEYTHING is less than 12% ...a few are 10 or 11 and certainly not less I joined MT three months ago and there hasn't been a new loan at 12% yet.
|
|
|
|
Post by jackpease on Mar 30, 2017 7:35:05 GMT
>>>>7% abominations
But the current preston 7% is not up for sale and creating illiquidity... and i reckon the new pipeline one will be snapped up and not adding to illiquidity... Which suggests that SS is wise to launch these 'cleaner risk' smaller loans.
The market is king and the market clearly has an appetite for them. MT may be choosing to 'please' investors by sticking to 12% but as a result is a pointless pleasure.
I continue to enjoy the excitement of SS and the platform user stats would suggest others do too!
Jack P
|
|
dermot
Member of DD Central
Posts: 863
Likes: 517
|
Post by dermot on Mar 30, 2017 7:40:44 GMT
The odd few bits I've put up for sale (to free up some cash for bills due in a few weeks time) are selling OK and moving up the queue, if a bit slower than usual. I started a week or two earlier than I would normally have done, given the current glut, but no particular problem.
As others have mentioned, the weekend interest run will probably soak up a bit more, though the new loans may limit that.
I've always seen my SS investments as something I would *probably* be able to cash in - if needed - within 30 days, rather than as some sort of instant access bank account. Good liquidity is always reassuring, however.
I wonder if some of the current glut on the SM could have been avoided if the new faster deposit mechanism had been available *before* INPL on SM was withdrawn?
I like MT too, but the closing of a lot of vehicle loans is going to leave a *lot* of cash sloshing around there come the last day of July ...
As some wise bloke probably said, diversity is key ...
|
|
|
|
Post by lendinglawyer on Mar 30, 2017 8:12:10 GMT
>>>>7% abominations But the current preston 7% is not up for sale and creating illiquidity... and i reckon the new pipeline one will be snapped up and not adding to illiquidity... Which suggests that SS is wise to launch these 'cleaner risk' smaller loans. The market is king and the market clearly has an appetite for them. MT may be choosing to 'please' investors by sticking to 12% but as a result is a pointless pleasure. I continue to enjoy the excitement of SS and the platform user stats would suggest others do too! Jack P I'm glad you put cleaner risk in ' '! I can't really see any evidence of that given LTV is still 70% (at least for the pipeline one)...
|
|
|
|
Post by jackpease on Mar 30, 2017 9:39:45 GMT
I'm glad you put cleaner risk in ' '! I can't really see any evidence of that given LTV is still 70% (at least for the pipeline one)... there's ltv and ltv! imho a single house at 70% loan to value is vastly different to yet another linked-developer student block at 70% ltv The former can be sold quickly and cleanly, The latter can't - and worse - is subject to all sorts of unquantifiable risks eg university closures/changes of student funding policy. The existing 7%'er does not appear to be clogging up the secondary market whereas some of the 11%'s are. Jack P
|
|
