skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Jul 10, 2017 17:03:29 GMT
I got as far as "Further to the notice....." then I must have dozed off......and then got a rude awakening with a picture of a building that looked like the builder had hacked a bit off his measuring stick in error and forgot to allow for it, stood back at the end and thought that'll do, nobody will notice......in between reminded me of what W C Fields said "If you can't dazzle them with brilliance, baffle them with bullsh*t".......I agree with CD they should go back to their USP with ONE interest rate ie 12%
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p2p2p
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Post by p2p2p on Jul 10, 2017 17:15:15 GMT
I'm not convinced by the cashback scheme. As soon as a new tranche is announced, why wouldn't I put up my existing holding for sale (it won't sell of course, with a better deal pending) and bid for the same amount in the pipeline. If I get it I pocket the cashback, and make a profit if my sale goes through in a month or so.
It might artificially clear the pipeline and avoid LL being in the awkward FSA position of underwriting a live loan, but won't change the overall sum invested on the site, and leave the SM even fuller. Its funding from the foregone interest pot on sales seems rather dubious to me.
Currently the "buy-it-now" option for earlier tranches seems more attractive for a new investor than waiting for a new tranche to launch, cashback will reverse that, and just delay committing new funds to the site.
Ideally I just want to set a desired holding for every loan, and if I didn't get it on initial launch, I'd get it whenever some went on sale (perhaps with a once a day sweep, to allow the fast-finger people to get priority). Then new tranches could be slipped into the SM with less fanfare, and my needing to remember for 10 successive tranches that I'd bought enough via tranches 1&2
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username
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Post by username on Jul 10, 2017 17:31:38 GMT
On DFL001 I have some loan parts which are paying more than others as they are older than the original term - presumably this is a bug?
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dzo
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Post by dzo on Jul 10, 2017 17:43:51 GMT
I'm not convinced by the cashback scheme. As soon as a new tranche is announced, why wouldn't I put up my existing holding for sale (it won't sell of course, with a better deal pending) and bid for the same amount in the pipeline. If I get it I pocket the cashback, and make a profit if my sale goes through in a month or so. Then you'd lose a month's interest while selling and you'd be no better off. It would just tie up more capital for no benefit. Lendy's priority is obviously to make sure new tranches get funded. Old tranches being hard to sell on the SM is a far lesser problem.
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dzo
Member of DD Central
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Post by dzo on Jul 10, 2017 17:48:17 GMT
new bonus column has disappeared! I was getting paranoid that I was the only person who couldn't find it!
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stevio
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Post by stevio on Jul 10, 2017 17:55:11 GMT
These updates are all for Lendy's benefit
They are starting to struggle to fund new tranches of DFLs, so add some CB
People are exiting, chuck a bonus in to try to get them to stay
Lendy aren't now sure they will recover the interest they have been paying on delayed loans, quitely take that away
Loans quality is falling, change the pre funding to focus people on the rate rather than the detail
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twoheads
Member of DD Central
Programming
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Post by twoheads on Jul 10, 2017 18:28:20 GMT
Nobody really thinks that the cashback is 1/12 of their investment do they? Obviously a typo and meant to be 1/12 of the annual interest. I think you're right... I too read this thinking that an immediate 8.33% pay-out would be more then generous - they don't really mean that do they?
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twoheads
Member of DD Central
Programming
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Post by twoheads on Jul 10, 2017 18:32:31 GMT
The bonus scheme may well cause some movement on long over term loans; either with buyers making purchases or sellers delisting. If the security looks really good, the chance of buying/holding loan parts which may repay with a few per cent bonus in a matter of weeks will be tempting to many. There is certainly more than one candidate. However, a couple of questions spring to mind ( Paul64, savingstream, Lendy Support) the first is a trivial one but the second more important in my opinion: 1. Does the bonus accrue only monthly or does it accrue daily? (i.e. if a loan is only 20 days overdue is the bonus zero or do you get 20 days of bonus at half the headline rate?) 2. If an overdue loan is granted an extension, will the bonus reduced accordingly? Personally I would expect a reduced bonus but I ask this for two reasons: (a) An investor holding to (e.g.) four months over term may be looking forward to a 2% bonus and then an extension is granted and the bonus (or part of it) annoyingly disappears. (b) The cynic could say that to reduce the bonus bill, Lendy may be tempted to grant extensions for over term loans which are likely to repay imminently. Discuss... |
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dzo
Member of DD Central
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Post by dzo on Jul 10, 2017 18:32:51 GMT
These updates are all for Lendy's benefit They are starting to struggle to fund new tranches of DFLs, so add some CB People are exiting, chuck a bonus in to try to get them to stay Lendy aren't now sure they will recover the interest they have been paying on delayed loans, quitely take that away Loans quality is falling, change the pre funding to focus people on the rate rather than the detail I think the end of SBL has more to do with the FCA than a Lendy money grab.
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stevio
Member of DD Central
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Post by stevio on Jul 10, 2017 18:43:11 GMT
These updates are all for Lendy's benefit They are starting to struggle to fund new tranches of DFLs, so add some CB People are exiting, chuck a bonus in to try to get them to stay Lendy aren't now sure they will recover the interest they have been paying on delayed loans, quitely take that away Loans quality is falling, change the pre funding to focus people on the rate rather than the detail I think the end of SBL has more to do with the FCA than a Lendy money grab. Me too in all honesty, but also conveniently gives Lendy excuse to further change their policy on overdue loans to the detriment of the Lender
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Post by dan1 on Jul 10, 2017 19:03:27 GMT
It's good to see that Lendy recognised changes were needed to keep the platform on track. Admitting you have a problem is often the hardest step. However, I doubt they'll have the desired impact - I just don't think they are that drastic to tempt lenders back to the platform and let's face it what Lendy require is more of our money lent on their platform.
I think back to what were the attractions of Lendy and top of the list was simplicity, it was the nearest thing you'd get to a (very?) high risk savings account. Now, with these latest changes I understand how the platform operates less than the likes of FC, ABL and FS - all with variable rate pricing. As a lender who has recently left the platform will I be coming back? No.
Overall though I think this is a positive step in the right direction so on that basis well done Lendy.
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Post by GSV3MIaC on Jul 10, 2017 19:43:45 GMT
Minus 200 brownie points for releasing the new columns showing 'bonus' data without previously explaining it .. and minus another 200 for vanishing them again with no explanation of that either (vanishing it for repaid loans makes sense ... I guess). Live testing .. have they suddenly acquired the Fumbling Computers tech team?!
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dzo
Member of DD Central
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Post by dzo on Jul 10, 2017 19:56:38 GMT
I'm glad Lendy have a testing environment. Now they just need a separate production environment.
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twoheads
Member of DD Central
Programming
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Post by twoheads on Jul 10, 2017 20:01:03 GMT
I'm glad Lendy have a testing environment. Now they just need a separate production environment. I never wanted to be a tester and now...
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p2p2p
Member of DD Central
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Post by p2p2p on Jul 10, 2017 20:34:37 GMT
"The [cashback] scheme is being launched in recognition of the fact that there is a perception that the level of risk increases in the later stages of a new property development, and so to better reward those lenders who can help developers bring projects to completion"
Surely the later tranches are lower risk, as the progress made with the previous tranches is clear. The disadvantage of a later tranche of a good project is that you get fewer months interest, and if LL are doing due diligence as they suggest, then they wouldn't propose new tranches for a failing project.
Tranches seem difficult for p2p. For a bank, its straightforward to commit to the complete sum at the start, and release stage payments, as the borrower has confidence they will be honoured. But here the borrower can only hope that lenders will still like them 6 months into a build.
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