greatmarko
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Post by greatmarko on May 12, 2017 14:43:52 GMT
Finally a new loan is live on the Platform - the first this year! (even though we're now 5 months in to 2017). It went straight to "live" and never appeared in the 'Coming Soon' pipeline. It's a 3-year 12% PA debenture. No security. ...have to say, I'm a little underwhelmed  |
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dzo
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Post by dzo on May 12, 2017 15:41:13 GMT
Interest doesn't begin to accrue until the 1st June 2017. They pay 70% of it every six months and hold back 30% to be repaid with the capital.
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dzo
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Post by dzo on May 12, 2017 16:08:42 GMT
Am I just being stupid, or is the return calculator wrong? It seems to be counting the rolled up interest twice.
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ben
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Post by ben on May 12, 2017 16:15:56 GMT
Not looked at it yet but there must be some security surely, otherwise it would make some of Lendys more dodgy loans look attractive.
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dzo
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Post by dzo on May 12, 2017 16:28:54 GMT
Not looked at it yet but there must be some security surely, otherwise it would make some of Lendys more dodgy loans look attractive. I won't pretend to be an expert on business loans, but my understanding is that they're typically unsecured. Presumably we rank behind secured lenders but ahead of shareholders if the company is wound up.
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dzo
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Post by dzo on May 12, 2017 16:31:37 GMT
They have another offer opening for BHs. I just took 900 - I like the platform and the detail that they provide, I like the alternative energy bias, but I use them more for a bit of interest (not just the 12%) and diversification. I was very confused until I noticed the lower case s!
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IFISAcava
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Post by IFISAcava on May 12, 2017 16:33:36 GMT
Interest doesn't begin to accrue until the 1st June 2017. They pay 70% of it every six months and hold back 30% to be repaid with the capital. That is always the case at Abu - cash drag versus missing out. The last one at 12% went quite fast but accelerated towards the end, disappearing before my eyes as I was about to top up. you do at least get 2% on uninvested cash within the ISA until end of July 2017 though
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Post by justdabbling on May 12, 2017 16:43:42 GMT
I have taken some too within the ISA. I recently sold an Abundance investment I had held for 8 months at an 11% premium, and I do like the platform.
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gnasher
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Post by gnasher on May 12, 2017 19:33:18 GMT
Now I am confused! I thought all p2p interest was paid gross now as we all have a £1000 (or £500 for higher rate tax payers) tax free allowance for interest. 
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scc
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Post by scc on May 13, 2017 3:48:35 GMT
Unsure about this one myself. One of the things I've liked about most of Abundance's debentures is the repayment of capital alongside interest allowing you to reinvest both earlier. In this case, you don't get all of your interest and none of your capital until the end. I don't like the holding back of tax either - because of the additional admin involved.
I do think the company wanting the loan has correctly identified some of the problems as I remember looking at it myself and thinking it was too complex to understand for the average person, too few installers and too difficult to apply for. I'm not sure I'm quite so bullish as they are about being able to build on the existing brand equity, but would be happy to be proved wrong as I can definitely see room for this kind of service.
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dzo
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Post by dzo on May 13, 2017 12:24:46 GMT
They've fixed the repayment calculator now.
The loan is already 15% full. I'm considering buying some more to sell on the SM as the premiums seem good on Abundance. Does anyone here have experience of selling on the SM, and is it as complicated as they make it sound?
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dzo
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Post by dzo on May 13, 2017 14:45:44 GMT
I sold my last investment - it was actually quite easy. They send you email offers which you can ignore or respond to. I responded to one which was not far from my target saying add X and it's yours - he immediately agreed and then we both emailed Abu. Remember that the premiums will include accrued interest, and of course with this one both the interest to be paid and the rolled into growth bit of interest. The exchange was the bit I was worried about, but that doesn't sound too bad. I'm guessing premiums go up as a repayment nears?
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scc
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Post by scc on May 13, 2017 18:00:10 GMT
They've fixed the repayment calculator now. The loan is already 15% full. I'm considering buying some more to sell on the SM as the premiums seem good on Abundance. Does anyone here have experience of selling on the SM, and is it as complicated as they make it sound? Selling is easy, but I would be wary of buying just to sell on the secondary market. I have bought some debentures on the secondary market for under their original price in the past. When there's been stock market turmoil for example, I've seen people dumping debentures or withdrawing offers. If this disappears fast, then yes it might indicate extra demand that could be fulfilled at a premium or it could indicate a bit of a bubble. In my view, however, people seem to use the secondary market to diversify, but I don't know how they justify some of those high values.
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greatmarko
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Post by greatmarko on May 15, 2017 10:51:12 GMT
I sold my last investment - it was actually quite easy. They send you email offers which you can ignore or respond to. I responded to one which was not far from my target saying add X and it's yours - he immediately agreed and then we both emailed Abu.... The exchange was the bit I was worried about... This is what concerns me - there are massive Data Protection issues here surely?! i.e. the platform provide you with other investor's email addresses, and divulge your email address to other investors! They really need to bring the secondary market "on platform" so that trades can take place without having to disclose investor's contact details!! Would be interesting to see what the ICO's take is on the way that secondary market trades are conducted through Abundance?
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greatmarko
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Post by greatmarko on May 15, 2017 18:20:50 GMT
To be fair, it is clear that the contact is made using email via their site. So no one is forcing anyone to use the secondary market. I do agree that an on platform SM would be much better. IIRC the buyers don't get the seller's email unless the seller replies. I'm not in disagreement over whether it's clear or not - I know it's made clear on their site, and I know that no one is "forced" to use the secondary market - that's not my point - my point was that for those investors like me who want to sell on the secondary market but who don't want our email addresses made available to other investors, we're essentially precluded from using Abundance's secondary market. I'm not aware of any other platform that forces investors wanting to sell their loan parts on a secondary market to have to engage in direct off-platform personal email correspondence with other investors. I really hope abundance will take note and work to address this so that we can all use the secondary market without divulging our personal information to other investors.
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