WHY I AM LEAVING LENDY

Well, I have been trying to sell loans on FS recently and the discount is totally irrelevant.  Numerous loans are not available for sale in an unredeemed state.  Many others are within one month of finish date and again NOT available for sale.  I am moving in the opposite direction to you.  I see too many heading for default at FS and not a penny of interest has been paid on those.  At least with SS you can generally sell most things (even though there will be difficult periods like the present) and get out of what looks like a possible tricky loan.  With FS there seems no way to predict what will have trouble redeeming, and when clues do arise it is too late to sell because a block will have been put on it.
I feel that next weeks interest payment and hopefully one or two repayments will clean out most of the SM and free up your money to invest in the FS property loans which seem to pop up one or two each day.

Never one to follow the herd, I'm taking advantage of super liquidity on the FS SM at present (I've sold many thousands of pounds worth of 32-47 remaining day loans today alone at less than the 20% tax liability) and am transfering the funds to LfSS and into loans I'm underweight in without the usual FFF bun fight. My redemption funds from Pickering and Huddersfield will likely flow back to FS as the loans I'm targetting will be snapped up very quickly once the redemptions occur (and/or 1st May interest arrives).

There was over £48,000 of DFL009 available earlier today - its all gone now (I took a 4 figure chunk out it, a few moments later someone took a £10k bite)

Don't panic guys. I would recommend holding your horses until the middle of next week after the interest run and hopefully a repayment or two. The tide turns very quickly here on Ly.

I am stuck in 12 sale queues that have barely moved in the last few days but I am not panicking. This is a time to be British and not throw in the towel.

Yes it is true I have decided to reduce my exposure on this platform and I am in the process of doing that and I will be only holding very high class, select loans from now on once I have managed to clear my decks of dross. My dross being loans with two months plus to go at 12% that never used to be dross. But this week they are dross. Next week they could be gold dust again.

Surely the very point of p2p is that you are in complete control over who you lend to and how much. If your strategy is just to loan on anything then you may not get the best possible outcome. I am personally reducing my lending on lendy, but my strategy is to only fund what in my opinion are the best loans. I have 1 left, and it is dfl20, it has a long time to run yet. I think I will hold for a year unless I see something in the platform to concern me.

I do think there are a few reality checks to come with the defaulted loans.

I'm not the prophet of doom but I am a realist. I will eat my hat if quite significant capital losses have not been suffered on this platform by the end of 2017.

However that should not worry the users of this forum who are all more savvy than the average investor and that is why they read this forum on a regular basis and contribute expert opinion and advice.

Unfortunately I feel it is the mugs and less knowledgeable and well-informed who will bear the Brunt of the losses. And unfortunately I also feel that some of those people may be those who are less able to afford to lose some of their money.

It is important to remember that the loan rates quoted to investors are headline rates before losses. Losses are inevitable and therefore the real rate of return should be expected to be lower than the rates quoted. The sensible investor will realise this if he or she is in it for the long term and they will have factored that into their equations and perhaps be content with a real return of 8% as opposed to the quoted 11 or 12%.

It is quite painful when you burn your fingers on the oven but in a way it is an important and salutary lesson that results in the sensible person going out and buying a pair of oven gloves and therefore being more aware of the risks in the future and acting accordingly and in an improved and better informed manner.

We moan when there are not enough loans and moan when there are too many loans...... just wait a few months.