kaya
Member of DD Central
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Post by kaya on Apr 11, 2017 14:46:13 GMT
Select up to 3 answers that best describe your approach to p2p lending.
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Greenwood2
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Post by Greenwood2 on Apr 11, 2017 15:31:20 GMT
Also have a bargepole list of things not to invest in, maybe comes under intuition, but also (bitter) experience.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 11, 2017 15:47:41 GMT
One thing for sure, with the rapidly decreasing trustworthiness of the information provided by one or more Platforms the DD is becoming such a chore that I believe many are considering, or already have, turned to Managed Funds or an ETF/Tracker.
I honestly believe that with one or more Platforms there is vital information being deliberately withheld from us, and you obviously can't do business with shyster firm/s like that.
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Post by Butch Cassidy on Apr 11, 2017 15:51:00 GMT
It rather depends on the attractiveness of the proposition; I can discard 90%+ of those on platforms such as FC & AC within a few seconds as the rate doesn't match the risk, conversely I can usually invest within a few seconds into pawn items on platforms such as MT & Col as they are easy to understand & I have taken the view that I trust the valuation & deal structure that the platforms provide. Naturally I tend to do more DD the greater the amount I am thinking of committing to the investment, so platforms such as Abl, SS, Rebs or LC where opportunities that I want are relatively few & far between will get much more of my time, commensurate with a higher level of each investment.
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kulerucket
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Post by kulerucket on Apr 11, 2017 19:39:24 GMT
I don't think I really fit any of the categories. My strategy is to spread everything as thinly as I can across platforms, countries, types of loans and duration, then thin out again within a platform and put very little to any individual loan (maximum ~0.5% of total P2P investments) . With this strategy I can't possibly do much DD on each loan beyond high level stuff like how easily I think something will sell and the LTV. Really what I do is hand over trust to the platform and let the performance speak. If any platform performs badly then overall I don't take much of a hit and just move funds elsewhere.
So I would have to answer "hardly any", but I can't say that I don't have a clue because if my strategy were different I would be looking into every detail and doing as much DD as I could.
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kaya
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Post by kaya on Apr 12, 2017 9:52:48 GMT
I guess perhaps ''none of the above'' should be standard on every poll - and of course on every political poll card!
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Liz
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Post by Liz on Apr 12, 2017 14:25:26 GMT
With so many loans to evaluate it is almost impossible to follow option 1. Some of the best-researched loans have led to my biggest losses, where security have been worthless. I accept loans will default, so I try and make sure the loans I invest in have good security. I would rather take low LTV @10%, than a high LTV @ 13%(ceteris paribus)
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 12, 2017 19:00:12 GMT
I agree with kulerucket that diversification is likely to be more effective than cherry picking based on DD. I use DD mainly to eliminate loans rather than selecting them. |
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Post by kyle1873 on Apr 13, 2017 0:35:56 GMT
I agree with kulerucket that diversification is likely to be more effective than cherry picking based on DD. I use DD mainly to eliminate loans rather than selecting them. This is the way i feel as well.
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