ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 23, 2018 10:11:00 GMT
There's always currency risk of course, but my strategy is to just leave it there for when I go back for good.
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Post by GSV3MIaC on Aug 23, 2018 11:41:37 GMT
Yes, but it's also possible the Aus$ appreciation could gain you more than the 9% interest does .. place your bets.
I expect you could hedge it back to £, if you were punting in a large enough way.
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Post by wiseclerk on Aug 23, 2018 12:46:47 GMT
I opened an account in the past days too.
Here is the detailed description how I did that as a non-resident
This is not about using 'loopholes', I told them straightforward that I am a German resident when I opened the account.
Isn't it possible that currency fluctuations (e.g. Australian dollar vs Sterling) could more than wipe out the extra interest (9% RS Aus vs 6% RS UK) ? Yes, very much.
But I gave Ratesetter UK rate only as a reference as Ratesetter UK does not allow me and other non residents to invest. I would (and do) have currency risk on UK platforms too as EUR is my home currency
And I am in for the long run, meaning I can choose when exactly I want to convert (part) back. So no rush.
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Post by p2plender on Aug 24, 2018 0:53:38 GMT
This is not a good idea unless the pound gets very high against the AUS dollar. It presently is historically very low. This is more about a currency gamble than a possible 9% return. With the Oz banking using 3 day settlement (drives me mad), it of course also knocks returns down than the headline rate. Not a bad idea if you're thinking of emigrating though. Interestingly RS UK is now achieving over 6% and comfortably, thus I think you're opening yourself up to a not very good currency gamble for maybe a 1-2% better return rate. Not sure how this presents itself to Euro denominated investors, as I don't ever follow the Euro/AUS price.
Have any OZ investors looked at any other Aus P2P platforms btw? I know Thincats are here, one other platform I looked at requires minimum investment of $2 mill. P2P thin on the ground in Oz as of now. No FC as of yet.
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Post by wiseclerk on Aug 24, 2018 7:27:47 GMT
From a Euro perspective - the EUR is near an 5 year high compared to the AUD (see chart in my article). Obviously that does not say anything about future FX rates.
And yes - transfering in is slowwwww. But a couple days delay won't make a dent in the yield when the investment is for 5 years.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 24, 2018 10:51:02 GMT
"any other Aus P2P platforms btw?"
I've mentioned them before - MarketLend. I've been invested for years and very happy, and this is NOT investment advice.
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arby
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Post by arby on Aug 24, 2018 11:58:10 GMT
I didn't think that Aus Ratesetter had any link to this Ratesetter besides a copy of the name? I may well be wrong though? If there isn't a link then maybe this should be made clearer (maybe even move this thread moved out of the Ratesetter forum?)
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Post by wiseclerk on Aug 27, 2018 11:11:38 GMT
Ratesetter AUS rate for 5 year market spiked at 9.5% today. Seems like I had good (lucky) timing when transfering my funds in and deploying them.
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cb25
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Post by cb25 on Aug 27, 2018 15:57:32 GMT
I didn't think that Aus Ratesetter had any link to this Ratesetter besides a copy of the name? I may well be wrong though? If there isn't a link then maybe this should be made clearer (maybe even move this thread moved out of the Ratesetter forum?) Seems to be a link - membership of the RateSetter group.
"RateSetter in Australia is an independent company, managed and majority-owned locally, although we benefit from being part of the RateSetter group.
The RateSetter group was founded in the United Kingdom in late 2009 by Rhydian Lewis and Peter Behrens. It has since grown to be one of the leading peer-to-peer lenders globally, having facilitated more than 520,000 loans totalling over $4.0 billion in value. It has allowed its investors to earn over £100 million in interest and equally has allowed its borrowers to save millions.
RateSetter was established in Australia in 2012, led by our CEO Daniel Foggo, and officially launched to the public in November 2014. Importantly, RateSetter launched as the first peer-to-peer lender licensed to provide services to all Australians, not just wholesale and sophisticated investors."
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Post by samford71 on Aug 27, 2018 16:49:09 GMT
Isn't it possible that currency fluctuations (e.g. Australian dollar vs Sterling) could more than wipe out the extra interest (9% RS Aus vs 6% RS UK) ? Yes, GBP/AUD volatility averages around 12%/annum over the last decade (12m trailing low 7%, high 25%). So lending through RS AUD, as a GBP-based investor, is essentially currency speculation. The carry differential of around 3.0-3.5% on 5y cannot compensate you for the additional risk. To currency hedge the position using GBP/AUD 12-month fx forwards costs 250 GBP/AUD pips (or 1.42%/annum); you sell GBP/AUD spot at 1.755 to buy it 12-month forward 1.780. Effectively, this reduces the yield differential to around 1.5-2.0% on 5y. I've been lending on RS AUD since Dec 14 since my family has dual-citizenship. It's part of broader portfolio including a superannuation, property and shares in Australia. I like RS AUD but it's not a free lunch. Depo and loan rates in Australia are higher so lending rates are higher but this carries risks. The PF coverage is not as strong as it looks and the loan book has yet to fully season. Basically, RS AUD is very much RS UK, only 5 years ago, but without any sellout option. As a result I stick solely to the 3-year rate. This is effectively 18-month rate (given amortization) in effective duration terms and yet trades typically 300bp over the 1-year (which is has a 12-month effective duration). That's simply silly. The 5-year rate (effective duration 30 months) offers far less value at just 100-150bp over 3-year but with an extra 12-month of effective duration.
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Post by GSV3MIaC on Aug 27, 2018 19:53:47 GMT
So perhaps the Aus 3 year will get vanished, like the UK 3 year did? 3 year was my preferred market here, and when it vanished I was not far behind.
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Post by p2plender on Sept 25, 2018 12:07:22 GMT
Time to vote!
Had a quick look. Seems they want more of a percentage of lender's returns and also proposing a secondary market with costs.
Thoughts fellow AUS RSetters?
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Post by wiseclerk on Sept 25, 2018 13:08:55 GMT
Had a quick look. Seems they want more of a percentage of lender's returns and Is that the essence of the wording in "Changes to interest margin fee"?
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Post by wiseclerk on Oct 4, 2018 15:03:46 GMT
Latest matched 5 year rate is 19.9% (no typo)!!
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travolta
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Post by travolta on Oct 4, 2018 15:20:28 GMT
Latest matched 5 year rate is 19.9% (no typo)!! Any chance of Poms getting in on this , say, using TransferWise? I had a nice relationship with Mintos and Latvia a year or so ago.... but I guess that's EU ….
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