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Post by Paul64 on Apr 5, 2017 13:43:27 GMT
Hi, £9m figure is correct, as is the 5% of the live loan book figure. But the information on the provision fund has not moved and is exactly where it always was, under the How It Works and FAQ sections. I can see that the selling at discount idea would have some appeal, so we will investigate further.
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SteveT
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Post by SteveT on Apr 5, 2017 13:48:47 GMT
Hi, £9m figure is correct, as is the 5% of the live loan book figure. But the information on the provision fund has not moved and is exactly where it always was, under the How It Works and FAQ sections. I can see that the selling at discount idea would have some appeal, so we will investigate further. , only SOME of the information is "where it always was". The actual £ amount held by the Provision Fund used to be displayed there too, but no longer is (it was removed when the first pay-out was made from the PF, disguising the size of that payment and also the time needed for the PF to be replenished)
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elliotn
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Post by elliotn on Apr 5, 2017 14:01:06 GMT
Hi, £9m figure is correct, as is the 5% of the live loan book figure. But the information on the provision fund has not moved and is exactly where it always was, under the How It Works and FAQ sections. I can see that the selling at discount idea would have some appeal, so we will investigate further. Paul, thank you for the reply. I can see refs to the PF and how it works but no dynamic data as to the current levels which I believe was previously in place (and may have been removed after being used to make whole pbl020 with a statement it woulld be replenished through natural cashflows on the SS site?). This should presumably move at 2% according to loans going live and being redeemed. Typically platforms provide this as live data and show historical levels/use as part of their risk statement and analysis to investors. Ly have also previously stated that these funds whilst being discretionary were segregated and accounted for separately. Again a re-confirmation on the new site would provide comfort to current and prospective users appraising risk for the platform. And thank you again for your replies the past couple of days  . Edit - part x'd with SteveT
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Post by Paul64 on Apr 5, 2017 14:17:31 GMT
Hi, I have responded via DM to a couple of forum members. However, as a general comment the description of the PF has been rewritten/updated, as we update all of our policies from time to time. The fund is still discretionary, but it is still in place in the event of shortfall. Nothing has changed. And the policy's location has not moved. On a wider point the entire website has been rewritten/refreshed. We have also provided much more information on how to use our service, and included many more helpful links to various documents like our default policy and the provision fund in our new Help Centre. Information is now much easier to find than it ever was, and policies like our Provision Fund can be very easily found under FAQs. lendy.co.uk/how-it-works#provision-fundsupport.lendy.co.uk/hc/en-us/articles/115002029365--How-does-your-lending-work- |
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ben
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Post by ben on Apr 5, 2017 14:18:32 GMT
Might as well put my unpopular two pennies in.
5% of the loan nbook being in default does not worry me, with the type of borrowers and the risk of these type of loans, I am suprised that the amount in default is not a higher percentage of the loan book. Lendy has a few very good loans but unfortuntly it has more poor loans, as my ever reducing balance shows.
What does worry me about Lendy is that the communication is hit and miss and they seem to make things up as they go along. That they appear to have a belief that all that matters is the value of the asset (with in reality is not important but probably not the most important), and that they have very poor risk managment skills, which for this type of operation is worrying.
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adrianc
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Post by adrianc on Apr 5, 2017 14:18:57 GMT
I feel sad for them. Speaking for myself I am starting to get concerned by my own growing commitment. Now that there are 13 defaults I have £13 at high risk. I have £12.99. I can't believe you've taken such a high risk... 13p here... Actually, that's not quite true. A lot more. 1p in each of 12 of them. Personally, I'm quite HAPPY to see them. Happier than I was when they were just the living dead. Happier now that we know the score with Lendy paying the interest, and interest accruing. Of that £9m, £2.8m is in PBL81 - and that's not really dead, just on hold with some very specific circumstances. I'm happy to still have money in that one.
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Post by Paul64 on Apr 5, 2017 14:26:46 GMT
Hi, I have answered this so many times via DM to members. The new description is here. lendy.co.uk/how-it-works#provision-fund. "The Fund will aim to have a minimum balance of 2% of the total live loan amount at any time. Every time a new loan is made a proportion of the fee charged to the borrower is paid into the Provision Fund (the amount is dependent on the loan size). If the Provision Fund is used to cover a shortfall in asset disposal, then it may take time to top the Provision Fund back up from company cashflow." |
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elliotn
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Post by elliotn on Apr 5, 2017 14:31:04 GMT
Paul, have a look at some other websites and how they provide breakdowns of PFs for investor appraisal and then compare it to Ly's note saying 2% to be topped up with cashflow. We have asked many times simply what is the current balance. This will allow us to assess its availability and how much still needs to be topped up against a rapidly growing 9M gross default book.
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arbster
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Post by arbster on Apr 5, 2017 14:40:42 GMT
Paul, have a look at some other websites and how they provide breakdowns of PFs for investor appraisal and then compare it to Ly's note saying 2% to be topped up with cashflow. We have asked many times simply what is the current balance. This will allow us to assess its availability and how much still needs to be topped up against a rapidly growing 9M gross default book. Quite so. A provision fund that is empty simply isn't a provision fund at all - one might argue that it's misrepresentation to imply that it's 2% when could be orders of magnitude less. Many would say that people shouldn't rely on the Provision Fund, but so long as Lendy claim to have one I would like to ensure I have factored it appropriately into my overall risk assessment when investing/remaining invested with Lendy.
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SteveT
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Post by SteveT on Apr 5, 2017 14:46:18 GMT
Hi, I have answered this so many times via DM to members. The new description is here. lendy.co.uk/how-it-works#provision-fund. "The Fund will aim to have a minimum balance of 2% of the total live loan amount at any time. Every time a new loan is made a proportion of the fee charged to the borrower is paid into the Provision Fund (the amount is dependent on the loan size). If the Provision Fund is used to cover a shortfall in asset disposal, then it may take time to top the Provision Fund back up from company cashflow." I used to be a Marketing Director too, so I'm well versed in the skill of "Answering the question I wish you'd asked me, not the one you did", but that only works so far. If the current level of the Provision Fund (presumably still depleted well below the 2% "aim") is now deemed "commercially confidential" by Lendy then you'd be better off simply saying so!
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Post by lendinglawyer on Apr 5, 2017 15:01:58 GMT
Hi, I have answered this so many times via DM to members. The new description is here. lendy.co.uk/how-it-works#provision-fund. "The Fund will aim to have a minimum balance of 2% of the total live loan amount at any time. Every time a new loan is made a proportion of the fee charged to the borrower is paid into the Provision Fund (the amount is dependent on the loan size). If the Provision Fund is used to cover a shortfall in asset disposal, then it may take time to top the Provision Fund back up from company cashflow." I used to be a Marketing Director too, so I'm well versed in the skill of "Answering the question I wish you'd asked me, not the one you did", but that only works so far. If the current level of the Provision Fund (presumably still depleted well below the 2% "aim") is now deemed "commercially confidential" by Lendy then you'd be better off simply saying so! I suspect you might be able to find out by accessing the prospectus for the upcoming bond issue, when it is available. If the bond proceeds are going to be used (presumably by an issuer SPV) to buy loan exposures which theoretically benefit from the PF and use the yields from those exposures to service the bonds (which I think based on what I have seen so far is what is intended), the amount in it (as well as the 2% "aim") would, I expect, be material information for investors to have access to...
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toffeeboy
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Post by toffeeboy on Apr 5, 2017 15:08:10 GMT
I used to be a Marketing Director too, so I'm well versed in the skill of "Answering the question I wish you'd asked me, not the one you did", but that only works so far. If the current level of the Provision Fund (presumably still depleted well below the 2% "aim") is now deemed "commercially confidential" by Lendy then you'd be better off simply saying so! I suspect you might be able to find out by accessing the prospectus for the upcoming bond issue, when it is available. If the bond proceeds are going to be used (presumably by an issuer SPV) to buy loan exposures which theoretically benefit from the PF and use the yields from those exposures to service the bonds (which I think based on what I have seen so far is what is intended), the amount in it (as well as the 2% "aim") would, I expect, be material information for investors to have access to... I'd disagree that it will be revealed in the brochure, the excess interest to be received over the 7% being offered to the purchaser will cover any losses rather than relying on the provision fund so in essence will form a PF of it's own so I doubt there will be any mention of the PF in the brochure.
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Post by lendinglawyer on Apr 5, 2017 15:14:25 GMT
I suspect you might be able to find out by accessing the prospectus for the upcoming bond issue, when it is available. If the bond proceeds are going to be used (presumably by an issuer SPV) to buy loan exposures which theoretically benefit from the PF and use the yields from those exposures to service the bonds (which I think based on what I have seen so far is what is intended), the amount in it (as well as the 2% "aim") would, I expect, be material information for investors to have access to... I'd disagree that it will be revealed in the brochure, the excess interest to be received over the 7% being offered to the purchaser will cover any losses rather than relying on the provision fund so in essence will form a PF of it's own so I doubt there will be any mention of the PF in the brochure. That's potentially a fair point - depends how many of the different layers of risk mitigation they want to layer in! In any event, I am very interested to read the bond disclosure as I think it could be far more revealing (at least in parts) than anything currently offered to investors.
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toffeeboy
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Post by toffeeboy on Apr 5, 2017 15:36:54 GMT
Paul64 I have also PM'd you after you sent a message. However, thought I may as well place a message here just in case you missed it You have told me that "it is changing all the time, which is why it wouldn't be accurate to include it". My question is specific to the amount... as of today (or whenever you choose to reply) - it isn't changing hour by hour; can you let us know how much is in the PF, please? I do think it is important to include an amount on the website (as you used to - it doesn't have to be a live amount, maybe updated weekly? Can't be too hard to keep it up to date, I am not sure how it can be changing all the time. Surely there are only two things that change the provision fund, either a new loan is generated in which case the PF increases by 2% of the loan or a loan repays in which case the PF is used to pay off the any short fall or Lendy reclaims the 2% it put into the provision fund for that loan.
I can't see why the PF would change at any point except for new loans and finished loans and it isn't like either of those events happens constantly.
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ablender
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Post by ablender on Apr 5, 2017 16:18:12 GMT
Paul64 I have also PM'd you after you sent a message. However, thought I may as well place a message here just in case you missed it You have told me that "it is changing all the time, which is why it wouldn't be accurate to include it". My question is specific to the amount... as of today (or whenever you choose to reply) - it isn't changing hour by hour; can you let us know how much is in the PF, please? I do think it is important to include an amount on the website (as you used to - it doesn't have to be a live amount, maybe updated weekly? Taking a point from what CD is quoting you as saying. All the data on your website is "changing all the time". This does not stop you from displaying the loans available for sale and other information. Why is it stopping you from displaying the value of the PF? Make it dynamic. PS I am still waiting for an answer re the reduction of my balance. The email replies from George do not hold water.
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