Zopa to allow investors to sell late loans

Simples. Projected return on Z+, 6.1%. Your portfolio of loans is making 6.3%? Zopa flog you a few duds to bring you down to target. Your portfolio is making 5.9%? Zopa flog you a few high performers to bring you up target.

So fewer people get lucky. And fewer people get unlucky? Just my thoughts and may be wrong.

Agreed, I don't think the FCA would stand for Zopa determining who to park dud loans with.

I'm not sure that I want any loans that are anything other than good ones when I receive them so I'm not sure what I feel about allowing the sale of duff loans. I always subscribed to the notion that if I have a dud then its my dud and unless I buy at a severely discounted rate as a debt collector would then I don't want anything to do with another persons loans.

Unless of course it can be explained better how it may be beneficial to me. Also whats to stop the people who have run down their book by selling off everything they have they can and are left waiting for the defaults to either complete or fail. Surely the first thing they will do is hit the sell button.

Now one way I might be happier - I think! - is if the sale of the defaulted loan writes off the current outstanding debt so far in the sale by removing it from the current lender. Having said that it may be that the borrower like some of mine - haven't paid anything for months sometimes even years.

Having thought about this as I write, I can't believe this will get past the FCA, will it?

Also I've just counted 45 defaults in Classic that are difficult to quantify as they have been paid. They were for approx £550 ( I invested at higher 1% rates as the safeguard was a protection - of sorts) taking my known preSG defaults as after 3 years of sg are about 50% paid up. then that means when the SG is removed I may have a lot higher default rate than currently. I think it will still be okay but many of the pre-sg ones were chosen by me and not auto selected by zopa so not sure how the current auto system is performing overall relative to the old way of selction. 

Did I mistake the target as being the headline starting target not the resulting rate. 

I'm struggling with the fact that until any given loan is finished its not possible to determine if the target will be met or achieved. I'm interested in the falling rates that we have had over the last year or two is going to make it tough for zopa to achieve this. I understand that the rates are spread over the life cycle of the loans but surely in a falling market any defaults that reduce the returns to lower than the rates are going to struggle to find loans that will cover the losses if the market continues to fall.

I know my thoughts are probably rather simplistic and I am happy to be enlightened further.

Z+ has only been going 15 months!!!

I would have thought return calculations would be invalid until we get to the first 4 or 5 years.

Zopa has been lending on a similar profile to institutions only for far longer, so should be able to accurately predict returns (armageddon aside).

Now why didnt i think of reading thàt 🤔, i am happy with that one, there are many that have failed dd at the outset and then been msrked as past arrears, i think