Grezza
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Post by Grezza on Feb 12, 2015 20:04:18 GMT
RS currently @ 6.1% 3yr, or 6.7% 5yr is more appetising!
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is
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Post by is on Feb 12, 2015 20:37:06 GMT
Time to resurrect an old favourite thread. 10818 starts it two week journey to collect £562500 at 7% interest-only with 0.5% cash back -24 month term. Anyone interested? The badly-configured autobidders as usual. No flipping interest since the cashback drop (and would have been a dog anyway due to size).
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fasty
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Post by fasty on Feb 12, 2015 20:44:55 GMT
Indeed; I'm finding it hard to get excited about 7% with only 0.5% splashback. The short bridging loan a while back at 12%+0.5% was a bit more like it. Nothing tempting me on Fumbling Circus at the moment. Perhaps a whole load of juicy loan requests will come tumbling out tomorrow afternoon.
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blender
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Post by blender on Feb 12, 2015 22:51:09 GMT
I got bored trying to see what they meant on the repayments - if it was truely amortising then maybe 7% doable because you could sell it on J Oh yes, they have screwed up on the repayments tab - chosen the one for commercial mortgages, amortised as if it were longer. It says 'interest only' everywhere else so did not bother with the repayment tab and amortisation. Will they start again now the question has been asked in Q&A - why bother? There are some manual bids, not all Autobids. Those parts will never shift on the SM - yours for two years at 7% once the cash back taken.
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2015 22:57:51 GMT
"...yours for two years at 7% once the cash back taken."
7% before fees!!! They'll have to do better than that.
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fasty
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Post by fasty on Feb 12, 2015 23:17:50 GMT
"...yours for two years at 7% once the cash back taken."
7% before fees!!! They'll have to do better than that.
I sold a piece of 6142 (property development at 7%) at par a mere couple of weeks ago... Although I suspect that I shall be stuck with quite a few pieces left by the time it's due for repayment. The older ones at 8.5% or 9.0% shift much faster though.
How about the request for £600k at 8% over 10days (10716)? Will it fill, since it is largely running concurrent with 10818, or will the Financially Clumsy piggy bank be raided?
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blender
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Post by blender on Feb 13, 2015 0:14:34 GMT
"...yours for two years at 7% once the cash back taken."
7% before fees!!! They'll have to do better than that.
I sold a piece of 6142 (property development at 7%) at par a mere couple of weeks ago... Although I suspect that I shall be stuck with quite a few pieces left by the time it's due for repayment. The older ones at 8.5% or 9.0% shift much faster though.
How about the request for £600k at 8% over 10days (10716)? Will it fill, since it is largely running concurrent with 10818, or will the Financially Clumsy piggy bank be raided?
Yes Grumps, 6% before tax. We usually talk gross rates with FC or we get confused. I should have said before fees and tax. About half as much as Savings Stream? Maybe they listed 10818 to make 10716 look good? They are much more cautious about that piggy bank, after the gung-ho start where they used it on a first tranche. They would not do that now with a limit of £1m. I can imagine the chat with the venture capitalists. 'You mean we invest all these millions in the business to make a return from facilitating a vast risk-free loan-book, and you not only lend it out at risk but have to keep loads of it liquid to cover contingent liabilities if the later tranches are not funded?' Doh!
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Post by Deleted on Feb 13, 2015 14:22:29 GMT
After working pretty hard at FC over the last 2 weeks and managed to win only two auctions at a price I would not cringe at, I've concluded that:-
1) The new property deals are for the birds, RS is paying better and with risk protection, so I'm out
2) The other deal %s are now so low as to no longer be worth the time required to bid on, so I'm out, if I wanted to earn minimum wage I could stack shelves.
3) Given the massive range of quality now being offered, including a company who offered 7 words to explain why they wanted £600k+, consultants who want more office space yet cannot spell, agricultural businesses who cannot fund their borrowings, people who want a van that just get lent the money at <8% etc and that using the auto system and setting it very high is not safe enough so I'm out.
I shall gently move my P2P money away to smaller P2P portals who are not hurrying down the institution line, this whole account is beginning to look like "sub-prime mortgage" to me and we all know what happened after that.
I shall come back every so often to see if the quality gets any better.
Hugs
Bobo
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Post by GSV3MIaC on Feb 13, 2015 20:10:20 GMT
Only 7 (?) new regular auctions today, so I guess they are playing the usual 'tilt the table to get the ball to fall into the property auctions pocket(s)' .. or maybe the pipeline is just empty again (down from the 100, or was it 120+ auctions to 65 or so now).
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fasty
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Post by fasty on Feb 13, 2015 21:13:17 GMT
Only 7 (?) new regular auctions today, so I guess they are playing the usual 'tilt the table to get the ball to fall into the property auctions pocket(s)' .. or maybe the pipeline is just empty again (down from the 100, or was it 120+ auctions to 65 or so now). I was wondering that too. When this has happened before, it often seems to end with a flood of new loan requests released over a very few days, resulting in a surge in the rate, mild excitement invariably spoiled by the consequential poor take-up from borrowers. I'm not quite sure how it would be properly described in financial terms - as an engineer it looks like a classic under-damped feedback control system! I'm sure there's opportunity to smooth out the rate fluctuations by more judicious release of loan requests - although perhaps FC don't really care? In the meanwhile, I'll take advantage of the lull in rates to get shot of some of my dodgiest loan parts to some poor sucker using autobid pass on the benefit of some of my less choice loan parts.
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wysiati
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Post by wysiati on Feb 14, 2015 3:31:55 GMT
Only 7 (?) new regular auctions today, so I guess they are playing the usual 'tilt the table to get the ball to fall into the property auctions pocket(s)' .. or maybe the pipeline is just empty again (down from the 100, or was it 120+ auctions to 65 or so now). At least 26 listings today - it's just that most of them were allocated (purely at random you understand) to the whole loans market. This other stuff - large funding gaps in property loan listings etc - is mere coincidence. Fallacious Claptrap.
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blender
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Post by blender on Feb 14, 2015 8:21:52 GMT
The percentage of loans going to the Whole loans is set by FC and it's only the choice of loans within that percentage which is made randomly.
I like to think of a large continuously-variable lever which has 100% Whole Loans at one end and 100% Partial Loans at the other, which can be repositioned by FC as it feels is necessary to match loan supply to lender cash supply. Then you can think of that lever adjusting the on/off time (mark-space ratio) of two alternating jets of air in opposition across an orifice, out of which pops ping pong balls representing the loans as they are agreed. Whichever jet of air is on at the time of emergence determines whether the ping pong ball goes to the whole loan or partial loan side.
Perhaps each morning a market manager instructs an operative to set the lever to a particular percentage, and on Fridays it is found expedient to have the lever rather close to the 100% Whole Loans position.
There is nothing in that which is inconsistent with what we have been told by Finely Controlled. Of course they may sometimes get a message '502 Bad gateway, ball stuck in orifice' - but they can handle that.
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Post by GSV3MIaC on Feb 14, 2015 8:29:38 GMT
<deleted>
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blender
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Post by blender on Feb 14, 2015 8:57:38 GMT
Whoops you are right GSV, below. Have deleted this post - sort of.
And to think I used to be able to solve differential equations with analogue computers. Shame on me.
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Post by GSV3MIaC on Feb 14, 2015 12:24:45 GMT
Actually it was scribble .. I hadn't had my coffee 8>. .. fewer partial loans puts the interest rate DOWN (as autobid eats them up, along with desperate manual bidders), which (eventually) causes the whole loan rate to go down too, and the institutions to stop buying .. then the rate goes back up (too many partial loans for the lenders to comfortably/stupidly fund) and the whole loan guys want to buy again .. basically, as the OP said, it is under/undamped feedback and will bounce off both end stops at some rate determined by how much lag there is in the 'calculate the whole loan rate' system. Looks to me like the cycle time is 2-3 weeks.
Now if FC set the whole loan rate as MBR, or even MBR +1%, they could manually tweak it to get some sort of balance (maybe they do, but that's not what was claimed)
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