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Post by Paul64 on Jul 11, 2017 17:26:17 GMT
Hi all, further to the platform update note yesterday, we paid the first bonus to investors today on PBL089. Further repayments due this week so watch this space. Paul Lendy Support |
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ilmoro
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Post by ilmoro on Jul 11, 2017 17:39:52 GMT
Hi all, further to the platform update note yesterday, we paid the first bonus to investors today on PBL089. Further repayments due this week so watch this space. Paul Lendy Support Could you clarify some of the points raises in this thread? Confusion over DFL cashback sums Interest on cancelled SM loan parts both before end of month and after end of month (on sale prior to end of month) Prevention of SM sales on defaulted loans - all DEF status or only in formal recovery thanks
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username
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Post by username on Jul 11, 2017 18:30:36 GMT
From the website...
And when the loanpart is sold [...] However, the proceeds of the sale will be credited to your account during the next working day.
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rxdav
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Post by rxdav on Jul 11, 2017 19:05:32 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
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r1200gs
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Post by r1200gs on Jul 11, 2017 19:27:54 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
Some changes are definitely required, particularly to deal with this pass the parcel secondary market where nobody wants short dated loans, even where the security is good. I'm with you all the way on the simplicity though.
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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 11, 2017 19:44:01 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
I'm afraid it is another case of Numberwang! link
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fasty
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Post by fasty on Jul 11, 2017 19:49:33 GMT
It's certainly stirred the marketplace.
I had a number of loans for sale, which had all been stagnating on the SM for weeks, moving very slowly.
Today, a flurry of emails and half of them have sold in one day.
I was very surprised.
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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 11, 2017 20:09:38 GMT
It's certainly stirred the marketplace. I had a number of loans for sale, which had all been stagnating on the SM for weeks, moving very slowly. Today, a flurry of emails and half of them have sold in one day. I was very surprised. I don't think some investors realise that 3/6/9 % of nothing is nothing LY should offer nectar points - that would move the SM I'd prefer BOGOF!!
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GeorgeT
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Post by GeorgeT on Jul 11, 2017 20:12:49 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
Spot on. I gave up trying to understand all this bonus interest stuff on the old loans and comforted myself in the hope that it won't ever affect me. The genius of the initial LY model was its simplicity and straight 12% across the board regardless of everything else. You could work out your monthly interest in your head. You didn't need a pocket calculator let alone a spreadsheet or PhD level skills in Excel.
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twoheads
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Post by twoheads on Jul 11, 2017 22:02:56 GMT
I'm afraid it is another case of Numberwang! linkAha, the dreaded Numberwang rears it's ugly head. Thanks for reminding me!
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twoheads
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Post by twoheads on Jul 11, 2017 22:40:29 GMT
FAO Paul64 , savingstream , Lendy Support :
New cash back offer
As part of this offer lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of their investment in that loan (i.e. equivalent to one extra month's interest per annum) payable at the same time as their interest payment.
This is a somewhat confusing missive: What exactly do you mean?
If it's cash back then I expect it to be paid in full at the first monthly interest run (or even before). Also, I think your system would struggle to cope with paying cash back over a year of monthly payments. For example: when buying on the SM, how would an investor know if they were buying 'cash back' tranche parts, or 'non cash back' original parts? Therefore I think all cashback would have to be paid in a lump sum which would be fixed at purchase time.
My problem is:
If the CB is 1/12 of the annual interest for a year then it's only 1% and this is entirely insufficient to make a significant difference.
If the CB is 1/12 of the investment then it's 8.3% and I think that's very generous (thank you), especially if the cash back all comes in within a month.
Which is it to be?
Please explain.
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Post by df on Jul 11, 2017 23:01:07 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
There wouldn't be so much need for these complications if they were able to sell the security on overdue and defaulted loans.
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elliotn
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Post by elliotn on Jul 12, 2017 3:11:09 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. Intuitively a later stage development seems lower risk as some of the main hurdles have been cleared and you can see concrete progress. If Ly were seeing later stage tranches go unfilled then this could jeapardise the whole project and be very high risk - perhaps the highest risk of DFL would be a distressed sale of an unfinished project. Other tail-end risks could be trying to sell the properties even after building is complete, for example DFL1 revaluation did not afford an interest payment extension and now we are reliant on the borrower having additional, separate security to pledge. These latter stage risks would be avoided by an investor that, say, funded early stages but exited before the end (SM permitting) so CB should help address the key, later stage risk of lenders not funding to practical completion.
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r1200gs
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Post by r1200gs on Jul 12, 2017 7:00:13 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. Intuitively a later stage development seems lower risk as some of the main hurdles have been cleared and you can see concrete progress. If Ly were seeing later stage tranches go unfilled then this could jeapardise the whole project and be very high risk - perhaps the highest risk of DFL would be a distressed sale of an unfinished project. Other tail-end risks could be trying to sell the properties even after building is complete, for example DFL1 revaluation did not afford an interest payment extension and now we are reliant on the borrower having additional, separate security to pledge. These latter stage risks would be avoided by an investor that, say, funded early stages but exited before the end (SM permitting) so CB should help address the key, later stage risk of lenders not funding to practical completion. There are risks there that I never really fully thought through. I would be the one guilty of thinking development in the later stages is much reduced risk, though clearly this is not the case if the end numbers are not looking so great and they need another cash injection which they don't get. Thanks for posting your thoughts.
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dzo
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Post by dzo on Jul 12, 2017 7:06:08 GMT
The real reason for the cashback is to make sure the later tranches fill if they happen to launch at a time when the SM is clogged. That's why it'll only be on 'select' DFLs.
The talk of perceived risk is just a cover story to make it sound less desperate.
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