p2p2p
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Post by p2p2p on Jul 14, 2017 9:59:19 GMT
If cashback isn't a signing on bonus, but is actually paid over time to the owner of the loan part, doesn't that mean that when these special tranches appear on the SM they are more valuable than older tranches. So the SM will need an extra layer of complexity to handle that. And everyone's own loans will have some loan parts that are more valuable than others, for the same loan, again more complexity.
Other sites that have premium/discounts on their SM are harder to use, as the headline is a loan at 0% premium, but when you drill down you find there's £20 for sale at that price, the rest is at 0.5% premium. If the SM allow selection of cashback parts first, they'd be snapped up, only benefiting flippers. If not, it would be pot luck whether you'd get a higher rate part when you bought there.
Sites that split my loan parts up according to when I bought them irritate me, I much prefer the aggregation we have here.
It would be much simpler if cashback was a single payment for buying from the pipleline. The buyer gets their 1% at the end o the first month, but if they try to sell instantly, will join the back of the long sales queue that instigated the need for cashback, and the loss of interest erodes their gain. The cashback cost to Lendy is just a launch cost to get it in the hands of lenders, which is what they want.
There is a big danger with all p2p sites that as they realise the complexity of running a bank, they expose that to lenders, which puts off all but the keenest, so funding dries up. If there were a p2p site halfway between Lendy and Ratesetter, both in complexity and return, I'd be tempted. Perhaps BondMason is for me.
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jonno
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nil satis nisi optimum
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Post by jonno on Jul 14, 2017 10:13:27 GMT
I know I'm an old fart, but on reflection, do people feel we've moved a step too far from the good old "Boaty Loan" days?  ?  |
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mary
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Post by mary on Jul 14, 2017 10:20:45 GMT
If there were a p2p site halfway between Lendy and Ratesetter, both in complexity and return, I'd be tempted. Perhaps BondMason is for me. I'd rather play the lottery than invest with Bondmason! Bondmason refuse to disclose which platform your money is going to, let alone what the alleged loan or security is, making it a pure trust and hope that your money has in fact been send somewhere that is going to pay back? Also it is in their T&Cs that investors have no direct rights to the alleged underlying security!
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p2p2p
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Post by p2p2p on Jul 14, 2017 10:37:34 GMT
All right, someone like BondMason. Are there any aggregators in the market, either across platform or within a platform. Someone who I could say "property only, 10%+ loans, 65% max LTV, max £1000 per borrower, hold to term" and who would automatically set up a portfolio for me from pipelines and SM. And then I could spend more time in the garden. I don't think I have an edge on due diligence, so a bot would be fine for me.
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rogerbu
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Post by rogerbu on Jul 14, 2017 11:02:55 GMT
I must be extremely thick. I cannot work out how much CASHBACK is? let alone when would I get it?
Looking at DLF024 there is no information on how much Cashback is worth etc. Will I get £0.01 or will I get 5 times my investment - no idea.
I will stay away from further investment in LY till they learn how to communicate .
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treeman
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Post by treeman on Jul 14, 2017 11:06:28 GMT
Dear Paul64 and all at Lendy I have no reason to believe you will listen to me anymore than the already existing myriad of opinion regarding your recent changes but take a minute to consider things ...... This forum is full of educated, smart, well payed individuals who actively invest their money beyond the society average, YET ..... I haven't stumbled across a single person who can figure out with clarity how this **CASHBACK** system operates, I don't mean to be crass but I'd have been crushed at school level for such a vague description. - Initially confusion reigned over 1/12 of investment or 1/12 of interest (pleased to see this has been cleared up) - Does the cashback cover one year or the term of the investment? - We had no idea if it would be launched within the existing loan or a new tranche (only became clear when it happened and seemed to surprise many who invested) - No one seems to know if the cashback will be paid as a single lump this month, an ongoing payment with every interest run, an ongoing payment for 1yr - What happens if you sell this part, again depending on what happens with the above point .... but does it transfer to the buyer or disappear? - Will it always remain a separate tranche or be swallowed up within the existing loan once cashback is paid, unless payment continues ad infinitum of course? I doubt I've covered half of it but how can this all be left in the air for investors to discover if they are brave enough to GIVE IT A TRY AND SEE WHAT HAPPENS, as this is about as much certainty as we can muster from the vague musing that is the update. Regards, a reasonably intelligent yet utterly confused investor I've kept to the sidelines since the email, tried to figure it out (given up), read all the 'interpretations', wondered if I'm just being thick and hoped for further clarity/worked examples............ Still not an inkling - wot a muckin fuddle.............. Maybe the Friday weather report will put us out of our misery.
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twoheads
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Programming
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Post by twoheads on Jul 14, 2017 11:06:53 GMT
When did the Bonus Accrual column disappear (again) from the default loans?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 14, 2017 11:07:33 GMT
So latest weekly update has been sent. Clearly you cant help some people. After some waffle about cash machines which is linked into liquidity or lack of, it just regurgitates the notification of changes without an attempt to clarify the issues that have been raised. Missed opportunity The bit I cant understand is that surely it is in Lendy interest to make sure these changes are clearly communicated so that they have the desired affect. Really highlighting the fact that loan parts listed for sale on the SM will not earn interest under any circumstances, even if cancelled, would probably lead to all the speculative listings being removed for the SM, reducing the amount on offer and boosting liquidity which is exactly one of the stated aims. Oh well ... fortunately todays news includes an ironically perfect ATM allegory for the state of the SM for some loans Man trapped in ATM passes notes to customers to let him outCould someone let @leopardcat out of the space where noone can hear her scream  |
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mary
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Post by mary on Jul 14, 2017 11:10:03 GMT
All right, someone like BondMason. Are there any aggregators in the market, either across platform or within a platform. Someone who I could say "property only, 10%+ loans, 65% max LTV, max £1000 per borrower, hold to term" and who would automatically set up a portfolio for me from pipelines and SM. And then I could spend more time in the garden. I don't think I have an edge on due diligence, so a bot would be fine for me. Not that I know of. Along those lines I invest in P2P investment trusts, which are LSE listed shares, dividends come every 3 months. However there are other risks, such as F/X. I hold RDL, P2P and VSL.
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Post by GSV3MIaC on Jul 14, 2017 11:19:56 GMT
Well I got a reply to my email query, which (I can still misinterpret it if I try) seems to indicate that CB is 1/12th of the annual interest (i.e. an extra month) paid at the end of month1 to whoever holds the part at that time. If you sell before end of the month, you lose all the extra bonus, the buyer gets it. After month1 (here I'm extrapolating from what was actually said) the part pays no extra .. you (or someone!) had it already. What I have still not quite grasped is 'interest paid on parts on the SM' .. savingstream .. do I lose a day's interest (or more? Or the cashback bonus?) if .. a) I list a part at midday, change my mind and cancel the sale at 1PM? How about 23:59pm? b) List a part at midday and cancel the sale at midday the next day (historically this would have got me the interest back, as long at the month had not ended between those two times). Answers on a postcard please. |
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gustapher
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Post by gustapher on Jul 14, 2017 11:45:25 GMT
Well I got a reply to my email query, which (I can still misinterpret it if I try) seems to indicate that CB is 1/12th of the annual interest (i.e. an extra month) paid at the end of month1 to whoever holds the part at that time. If you sell before end of the month, you lose all the extra bonus, the buyer gets it. After month1 (here I'm extrapolating from what was actually said) the part pays no extra .. you 9or someone!) had it already. What I have still not quite grasped is 'interest paid on parts on the SM' .. savingstream .. do I lose a day's interest (or more? Or the cashback bonus?) if .. a) I list a part at midday, change my mind and cancel the sale at 1PM? How about 23:59pm? b) List a part at midday and cancel the sale at midday the next day (historically this would have got me the interest back, as long at the month had not ended between those two times). Answers on a postcard please. So basically the cashback works exactly as they described it - what a surprise... My interpretation on the other bits: a) in both cases you wouldn't lose interest b) in this case you would lose one days interest
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 14, 2017 11:51:34 GMT
Well I got a reply to my email query, which (I can still misinterpret it if I try) seems to indicate that CB is 1/12th of the annual interest (i.e. an extra month) paid at the end of month1 to whoever holds the part at that time. If you sell before end of the month, you lose all the extra bonus, the buyer gets it. After month1 (here I'm extrapolating from what was actually said) the part pays no extra .. you 9or someone!) had it already. What I have still not quite grasped is 'interest paid on parts on the SM' .. savingstream .. do I lose a day's interest (or more? Or the cashback bonus?) if .. a) I list a part at midday, change my mind and cancel the sale at 1PM? How about 23:59pm? b) List a part at midday and cancel the sale at midday the next day (historically this would have got me the interest back, as long at the month had not ended between those two times). Answers on a postcard please. The answer is in the posts above/below. Loan parts on the SM dont accrue interest at all, not one nanopence, ever again. Forget anything you have ever read, heard or seen. a) Youd get the interest (probably) b) You wouldnt Read the T&Cs and the now corrected FAQ. Its all really clear, i dont see how you could possibly be confused.
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Post by mrg on Jul 14, 2017 12:33:03 GMT
Perhaps i'm missing something but I have read that a overdue/defaulted loan will have a accrued bonus that the last person to hold the loan before repayment will receive. But at the same time trading of overdue/defaulted loans will be suspended? So you can't buy into a defaulted loan to become the last person to hold the loan in hopes to receive the bonus? is that right?
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mary
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Post by mary on Jul 14, 2017 12:42:55 GMT
Perhaps i'm missing something but I have read that a overdue/defaulted loan will have a accrued bonus that the last person to hold the loan before repayment will receive. But at the same time trading of overdue/defaulted loans will be suspended? So you can't buy into a defaulted loan to become the last person to hold the loan in hopes to receive the bonus? is that right? If you check the list of available loans on the SM, you can see that the Bonus starts from -1 month, and then increases monthly, and these loans are tradable until they default at -180 days, at which point whoever is holding it is stuck praying for recovery of capital AND sufficient money to repay standard interest AND bonus interest.
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Post by GSV3MIaC on Jul 14, 2017 12:54:23 GMT
So basically the cashback works exactly as they described it - what a surprise... Ah, but "as they described it" 'when' exactly? .. the description of how it works is now on release 5, rev 3.0b, issue 2 (some edits may have escaped notice).
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