stevio
Member of DD Central
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Post by stevio on Jul 5, 2017 21:12:54 GMT
Hello gurus, I would like to invest more on AC, but still learning how to choose loans. i am rather cautious with loans on AC, as it seemed to have more defaults (least in my eyes). I occasionally went through defaulted loans and try to see what signs i could see from it, so as to learn from previous defaults. any words of wisdoms to pass to this newbie me? thanks. More defaults than what? Other P2P sites? Which sites are you comparing to? Your not allowed to mention the level of AC "defaults" 😉 things can get quite defensive round here if you go down that road... They do have a much mature loan book than others, so this level of late repayment is normal I know what you mean though, it deterred me too from investing, despite others determined to prove otherwise However they receive very good reviews on recoveries and as mentioned, they seem to be selling a higher quality loan book but for reduced rates If I wasn't a rate tart, I would (and have done numerous times) reconsider them
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Post by elephantrosie on Jul 5, 2017 21:31:35 GMT
stevio- thanks for advising me to be cautious.
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shimself
Member of DD Central
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Post by shimself on Jul 5, 2017 22:11:09 GMT
thanks. if borrowers havent made payment for monthssss, how do lenders get their interests? They don't Um well, you probably will are more likely to get your money if you are invested in the GBBA or GEIA accounts, because they don't distribute all the interest earned and hold some of the surplus back to cover failed loans. Which is fine as long as only a few loans fail.
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Post by lynnanthony on Jul 6, 2017 7:12:37 GMT
More defaults than what? Other P2P sites? Which sites are you comparing to? Your not allowed to mention the level of AC "defaults" 😉 things can get quite defensive round here if you go down that road... They do have a much mature loan book than others, so this level of late repayment is normal I know what you mean though, it deterred me too from investing, despite others determined to prove otherwise However they receive very good reviews on recoveries and as mentioned, they seem to be selling a higher quality loan book but for reduced rates If I wasn't a rate tart, I would (and have done numerous times) reconsider them Defensive? Not me. I simply would like to know which sites have lower defaults, when compared like for like. I am not challenging that there aren't any, I'm asking which ones you or anyone else think are lower so that I can go and have a look and maybe invest there. (MT is one so far; I'm already there. Collateral? Yes but not yet mature enough to draw conclusions. Where else?)
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Post by GSV3MIaC on Jul 6, 2017 12:08:10 GMT
ABLRate, maybe.
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angrysaveruk
Member of DD Central
Say No To T.D.S
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Post by angrysaveruk on Jul 6, 2017 12:25:35 GMT
The defaults might appear fairly high (about 6%) but it is important to remember that the loans are secured on assets. When the loan goes into default the lost interest, principle owed and recovery expenses (legal costs etc) is offset against the value of the asset which should be enough to cover this. Although we dont benefit from this in the P2P environment lenders will sometimes make a loan secured on an asset hoping the borrower defaults so they can take ownership of it at a reduced price. In the world of secured lending defaults are only bad if the asset it has been secured on has been misvalued or goes missing  |
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Post by df on Jul 6, 2017 22:34:31 GMT
I couldn't find any statistics on ABL default rate, but I know there is at least one in the process of recovery.
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n
Member of DD Central
Yet another Nick
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Post by n on Jul 7, 2017 7:54:06 GMT
I couldn't find any statistics on ABL default rate, but I know there is at least one in the process of recovery. There haven't been any others.
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