GeorgeT
Member of DD Central
Posts: 1,322 
Likes: 1,576
|
Post by GeorgeT on Oct 13, 2017 16:09:47 GMT
I had suspicion something might be up yesterday, before today's update, because suddenly quite a lot of these appeared on the SM. Why I asked myself. Luckily I was not tempted to invest more as I am down sizing in LY. It seems possible that somebody had some advance, inside knowledge. Nope. As alluded to by ilmoro , the updates emailed today, were posted on the loans' respective page at 11:31am yesterday. Well that explains the sudden selling / availability in these loans that I saw yesterday. But my strategy has earned me an extra day's interest over those who sold out yesterday  I'm out of 178 and 179 now and I'm down to a 4 figure sum in LY so I'm thinking I may as well exit altogether and concentrate on my other platforms. I've had a good run here. £22k interest & cashback earned over nearly 4 years; all tax free in my case. I'll be left with about £1.8k total tied up in 1 default and 2 suspended loans. My remaining loans are all virtual instant access 12%ers so I might leave after midnight on Sunday night, content in the knowledge that I will have left the table with 10%+ overall, regardless of the outcome of my sticky 3.
|
|
gustapher
Member of DD Central
Posts: 144
Likes: 267
|
Post by gustapher on Oct 13, 2017 16:12:06 GMT
I had suspicion something might be up yesterday, before today's update, because suddenly quite a lot of these appeared on the SM. Why I asked myself. Luckily I was not tempted to invest more as I am down sizing in LY. It seems possible that somebody had some advance, inside knowledge. Nope. As alluded to by ilmoro , the updates emailed today, were posted on the loans' respective page at 11:31am yesterday. That's interesting - are they updated at a certain time consistently or are you just continually checking?
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Oct 13, 2017 16:48:51 GMT
I think that any very significant update should be emailed to all investors in the subject loan and not quietly added to the website where some may see it and others may not.
I consider the latest updates on these loans to be very significant and I quote "The borrower's failure to pay mandated income is a technical Event of Default ...........<snip> ...... failing which we shall proceed with legal action to enforce the security."
I suppose it also raises the question of when is a loan in default not a loan in default. A "technical event of default" but not an actual default. It's all getting too confusing for me on this platform....... defaulted, suspended, non-performing, technically defaulted ..........
I think we need an LY dictionary.
|
|
coda
Posts: 21
Likes: 23
|
Post by coda on Oct 13, 2017 17:00:27 GMT
In the normal banking world, "technical event of default" is a breach of contract happening for technical reasons (typical example is disruption of payment systems or borrower being able to do something on time for a good practical reasons). In this case it looks like to me just a plain event of default. A borrower not making a payment or constituting a pre-agreed collateral is a very serious credit event not a simple technical breach.
There are very easy ways for lenders to ensure that they capture rental incomes if that is the commercial agreement (assignment notified to the tenants, instructions to the account bank where the payments are made etc). It looks like that Lendy solely relies on the goodwill of the borrower which is very naïve.
|
|
dovap
Member of DD Central
Posts: 467
Likes: 410
|
Post by dovap on Oct 13, 2017 17:07:15 GMT
odd that the 'default'
hasn't in any way
changed the risk profile -
leading to the now prolific
in line with its regulatory requirements suspension.
ho hum
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Oct 13, 2017 17:22:13 GMT
Updates show the borrower was late with rent payments before but made payment later. Hopefully Lendy's red letter will produce a similar result.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 13, 2017 19:17:50 GMT
Those updates certainly have spooked PBL178/179 investors. As I write this, 12-14% of these loans are available on the SM. That's rather unprecedented for loans that are at 12% and with 215 days remaining. I'm not sure why PBL177 hasn't been similarly affected, but it's smaller and it looks like whenever more parts are offered for sale most are snapped up, presumably because investors haven't read, or haven't absorbed the potential implications of, the recent update.
I'm a bit puzzled by the previous update...
If the loan still has 215 days before maturity, why should Lendy be pressing for evidence of a refi now?
|
|
|
|
Post by supernumerary on Oct 13, 2017 19:39:51 GMT
If the loan still has 215 days before maturity, why should Lendy be pressing for evidence of a refi now? Strange and stranger, as the plot thickens... 
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 13, 2017 20:28:04 GMT
... the plot thickens... Should that be "sickens"? 
|
|
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 Oct 14, 2017 0:23:33 GMT
I think the time stamp that new2p2p is referring to is the time they are put on the system but I dont think they actually appear until Friday. I saw them on site before they were sent out in the email at which point there was zero queue on all of them.
With regards defaults ... loans will have covenants attached of things that borrowers have to do ... I suspect a technical default is one where a borrower has breached the covenants but not in a way that requires a loan to be defaulted and recoveries initiated because it doesnt effect either the value of the security or the redemption of the loan. On AC loans often breach covenants by failing to provide accounts on time, breaching debt covenants or even failing to make a capital reduction. AC will reserve its rights formally but often allow the loan to continue if they are happy that the overall loan isnt compromised and the borrower is communicative/engaging. If the risk profile hasnt changed materially then the loan will remain tradeable.
|
|
webwizard
Member of DD Central
Posts: 157
Likes: 145
|
Post by webwizard on Oct 20, 2017 9:07:16 GMT
I had suspicion something might be up yesterday, before today's update, because suddenly quite a lot of these appeared on the SM. Why I asked myself. Luckily I was not tempted to invest more as I am down sizing in LY. It seems possible that somebody had some advance, inside knowledge. I note that there was an article about Lendy providing bonds at www.p2pfinancenews.co.uk/2017/04/05/lendy-debut-bond/Does anyone know if this is related to the dumping of loans on the SM before the updates are released or is this just coincidence?
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Nov 1, 2017 21:45:11 GMT
Considering the latest update:
"Whilst the borrower company brought the mandated rental income up to date following the loan default event it did not pay all accrued default interest. However, following negotiations with the borrower's solicitor, it has been agreed that all accrued default interest will be brought up to date in early November 2017 and that the borrower company will commence work to exit the loan in its entirety before the due date".
Taking into account the following:
"During the last six months of the 12 month loan period, the loan interest will actually be paid by the borrower, rather than rolled up into the loan".
And in light of the latest trend of suspending loans due to "changes in risk profiles", I now believe that these three loans are candidates of being suspended before the end of November. I therefore have sold my stakes.
|
|
|
|
Post by doonio on Jan 6, 2018 20:54:35 GMT
Nothing was suspended yet and new update was released for both PBL178 & PBL179.
I am thinking to leave this boat when it is still some time, or am I only one who has bad feeling from this loan?
|
|
|
|
Post by skint4achange on Jan 6, 2018 21:07:15 GMT
I got out of all of these loans after reading up on this individual. Not renowned for having the best business model going!
|
|
|
|
Post by brightspark on Mar 24, 2018 9:24:51 GMT
You did well! Anyone else fed up with this endless procrastination. Anyone else lobbied Lendy to extract a digit and do something other than waffle.
The whole p to p industry with one or two exceptions seems totally spineless when it comes to enforcement action. Lendy is the third platform that I am abandoning because it won't enforce terms agreed with borrowers. These same borrowers are not widows and orphans being forced from their cottages. They are hard headed businessmen who need to be threatened with ruin to bring them into line.
|
|
