jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,808 
Likes: 3,242
|
Post by jonno on Apr 25, 2017 9:15:30 GMT
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. Yes, there are reality checks to come. Especially because the current raft of defaults are for loans under the new Ts & Cs where the lenders are lending directly to the borrowers and not to LfSS. I think that this gives LfSS an opportunity to be less enthusiastic about their repayment policy (which has been perfect so far). Now that LfSS is not the direct recipient of our funds, will they be as willing to dip in to the infamous PF to pay back loans that go West?
And why are so many of the 'DEF' loans in the West?
Well twoheads, They do say P2P is the "Wild West" of lending 
|
|
|
|
Post by p2plender on Apr 25, 2017 10:14:32 GMT
No coincidence that the sm has ground to a halt just as the default list has multiplied! I'm with the op here.
|
|
dp
Member of DD Central
Posts: 189
Likes: 84
|
Post by dp on Apr 25, 2017 11:33:08 GMT
PBL140 has just repaid. 3.5m repaid. SM will start to move again, another 1m due in Interest on Monday.
Will be interesting too see if anyone now wants to change comments from this thread.
|
|
|
|
Post by p2plender on Apr 25, 2017 13:11:28 GMT
Several months back the 'fully funded' sign would be up after 3.5 repayment so let's see. More than enough to take everything and more..
|
|
will
Member of DD Central
Posts: 98
Likes: 57
|
Post by will on Apr 25, 2017 13:43:47 GMT
Looks like someone (or several people) just bought up over £0.5m on the SM... so that's cleared it somewhat. I thought it was going to take a week to sell everything I was trying to get rid of!
edit: Just realised there's been a loan repayment... things are moving fast now.
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Apr 25, 2017 14:15:23 GMT
Things are moving but the action is noticeably more selective than it was in the past. Buyers aren't clicking buy in a mad rush sort of way. It appears there's more discretion being exercised by investors.
One problem is that the top of the board is cluttered up with low rate flotsam which pushes my 12% goodies further down the page. It would be better if people could sort the available loans page by % rate.
|
|
|
|
Post by lendinglawyer on Apr 25, 2017 15:12:40 GMT
Things are moving but the action is noticeably more selective than it was in the past. Buyers aren't clicking buy in a mad rush sort of way. It appears there's more discretion being exercised by investors. One problem is that the top of the board is cluttered up with low rate flotsam which pushes my 12% goodies further down the page. It would be better if people could sort the available loans page by % rate. You can do this with the browser add-ons available through this forum, but would clearly be better if it was a standard Lendy feature so that everyone could do it! The availability of all loans I hold has plummeted in the last few hours, all of which are strong 12% goodies (in my opinion) so I don't think people are buying purely based on rate if there are some 12%ers not shifting at the same rate. As was said above, investors are being more selective in their SM purchases, so unfortunately one man's "goodies" seem to be another man's "flotsam"...
|
|
copacetic
Member of DD Central
Posts: 306
Likes: 667
|
Post by copacetic on Apr 25, 2017 15:23:02 GMT
Regardless of whether the SM is moving or not at the moment I have a deeper concern that Lendy have a vested interest in keeping the SM illiquid. Investors don't earn interest on loan parts up for sale despite still owning the loan part and being liable for any losses. Presumably the interest Lendy saves in paying out goes straight onto their bottom line, so if there is £2m average for sale on the secondary market they earn up to an extra £20k a month.
If Lendy's and your own desire for a liquid SM are oppositely aligned then there could be trouble ahead!
|
|
|
|
Post by lendinglawyer on Apr 25, 2017 15:34:43 GMT
Regardless of whether the SM is moving or not at the moment I have a deeper concern that Lendy have a vested interest in keeping the SM illiquid. Investors don't earn interest on loan parts up for sale despite still owning the loan part and being liable for any losses. Presumably the interest Lendy saves in paying out goes straight onto their bottom line, so if there is £2m average for sale on the secondary market they earn up to an extra £20k a month. If Lendy's and your own desire for a liquid SM are oppositely aligned then there could be trouble ahead! That would be a pretty short-term approach from Lendy if that was their primary motivation. I am not saying they don't and can't benefit from the current structure, they do and can, but only to a point: if they actively seek to maintain an illiquid SM that will dent investor confidence (see the comments above!) and so probably lead to net outflows of money and therefore to it being harder for them to fill all of their loans despite aiming for lots more volume nowadays. Illiquid SM right now is a side effect of more primary business being written, not the other way around.
|
|
|
|
Post by dinnerlady on Apr 25, 2017 15:48:54 GMT
The interest forfeited by investors when they put loan parts up for sale should be put into the provisional fund.
|
|
dermot
Member of DD Central
Posts: 863
Likes: 517
|
Post by dermot on Apr 25, 2017 15:56:07 GMT
The interest forfeited by investors when they put loan parts up for sale should be put into the provisional fund. Quite a sensible idea, I think.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Apr 25, 2017 16:01:11 GMT
Lendy has already said that it goes directly into the PF. The trouble is that this is only maintained at 2% of the loan book so when a loan repays, they take money out of the PF so they are essentially pocketing those extra interest payments.
*PF always was at 2% but who knows now it's kept a secret ☹️
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Apr 25, 2017 16:01:32 GMT
Yes, agreed. A good idea by the spam fritter specialist.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Apr 25, 2017 16:34:22 GMT
Lendy has already said that it goes directly into the PF. The trouble is that this is only maintained at 2% of the loan book so when a loan repays, so does the PF so they are essentially pocketing those extra payments. *PF always was at 2% but who knows now it's kept a secret ☹️ If Lendy take the 2% of the loan valued being repaid out having put the same 2% in then the extra payments which are surely in addition to that would remain in the PF and help replenish it.
|
|
|
|
Post by p2plender on Apr 26, 2017 6:55:09 GMT
PBL140 has just repaid. 3.5m repaid. SM will start to move again, another 1m due in Interest on Monday.
Will be interesting too see if anyone now wants to change comments from this thread. No, far from it! SM hasn't moved much by the way given £3.5m came in. Sure sign cash is being taken off the platform in now decent amounts. Worth mentioning as well, 12% in a distant dream considering how much time you could have money sat idle in loans awaiting sales.
|
|
