|
|
Post by GSV3MIaC on Jun 27, 2014 18:44:04 GMT
I'd just like to chip in that I, too, find the current bail-out system inferior to the competition. Yes, if rates have risen from my initial investment, I expect to take a hit (and if they have fallen, maybe I could make a profit, except the borrower can always repay the loan at any time, IIRC). And possibly nobody really want to buy a 4.3 year loan. But I suspect people would (they sure used to on ZOPA, and they do on FC) .. if the rate was right. You shouldn't go in to 5 years intending to bail out, but if you nee to, and there is a willing buyer, it ought be easier/cheaper than it currently is.
|
|
mikeb
Posts: 1,052 
Likes: 463
|
Post by mikeb on Jun 28, 2014 20:35:35 GMT
Blimey! Funds are looking low, aren't they? Except in the 1 year market, which is odd... Not good for confidence. Could someone from RS comment? 69k available on the 5 year market, rates nudging 6.5% now! Monday morning, everyone will dive in with their topping up ... right?
|
|
|
|
Post by westonkevRS on Jun 28, 2014 20:46:48 GMT
I will be, and I'm the CRO! 6.4% for a "fund" with a FE Trustnet rating of 1 is a pretty good safe investment to me. But I'm biased.....
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Jun 29, 2014 2:57:29 GMT
Which of the various Trustnet ratings is 1? Assuming it's the risk score all that does is compare the volatility to the FTSE 100 index. This type of product will inevitably have very low volatility so that's unsurprising. A very poor way to measure the risks of this sort of product, which tend to lay more with people and legal classes that could affect a lot of loans in a black swan situation. One consumer lending nightmare is bad annual statements and the need to repay interest.
As CRO have you considered encouraging lenders to look over a blinded sample of contracts, statements and such to try to increase confidence that they don't have any unpleasant surprises? Pros miss things sometimes and it's good to get more eyes that have a strong personal loss exposure to look things over.
|
|
|
|
Post by westonkevRS on Jul 10, 2014 18:58:22 GMT
Which of the various Trustnet ratings is 1? Assuming it's the risk score all that does is compare the volatility to the FTSE 100 index. This type of product will inevitably have very low volatility so that's unsurprising. A very poor way to measure the risks of this sort of product, which tend to lay more with people and legal classes that could affect a lot of loans in a black swan situation. One consumer lending nightmare is bad annual statements and the need to repay interest. Agreed on the point regarding the score is volatility, not risk per se. Still nice to have a first and more FT coverage: m.ft.com/cms/s/0/6db91c9a-0843-11e4-9380-00144feab7de.html
|
|
