Post by bigfoot12 on Apr 15, 2017 10:43:05 GMT
How much do you think the more or less instant access(1-2 working days or better) spread of P2P products should be over FSCS or Gilts? It would be interesting to see any comments if full FSA permission makes a difference. I'm assuming secured lending, (or at least a very well provisioned protection fund).
For me the liquidity risk is about 1% (maybe more) and at least 3% (for high quality residential low LTV, much more for high LTV or commercial) for the credit risk. I selected 4-6%, so obviously I don't lend on any platform at that rate because it doesn't really exist. (I have occasionally allowed QAA on AC to hold money as it rolls into the next loan.)
Edit: My Terminology
Edit: Liquidity risk is the risk that I won't get my money back in the short time I expected, because there are more people asking for their money back than available funds or new investors.
Edit: Credit risk is the risk of default, including late payments because assets have to be realised.
For me the liquidity risk is about 1% (maybe more) and at least 3% (for high quality residential low LTV, much more for high LTV or commercial) for the credit risk. I selected 4-6%, so obviously I don't lend on any platform at that rate because it doesn't really exist. (I have occasionally allowed QAA on AC to hold money as it rolls into the next loan.)
Edit: My Terminology
Edit: Liquidity risk is the risk that I won't get my money back in the short time I expected, because there are more people asking for their money back than available funds or new investors.
Edit: Credit risk is the risk of default, including late payments because assets have to be realised.
