SteveT
Member of DD Central
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Post by SteveT on Aug 8, 2017 9:16:13 GMT
Whilst opinions of Lendy can be varied and colourful, I think most would agree that the Directors are not daft. For several years, the golden egg-laying goose brought forth a steady bounty of new lender funds to fill new loans, on which Lendy make a large margin and cover costs upfront (bar contributions to the PF). The push for accelerated growth just as dubious older loans failed to repay gave the goose sudden severe constipation, but recent moves to return it to health appear to be helping. I suspect the next few months to see more of the same (focus on repayments / recoveries whilst new lending builds again slowly) until new lenders are again clamouring to fund new Lendy loans ...
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gustapher
Member of DD Central
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Post by gustapher on Aug 8, 2017 10:31:12 GMT
IMO the most significant recent change with Lendy is that most of the loans pumped out are either (a) <12% PBLs or (b) monster DFLs with seemingly insatiable funding needs. Neither is a problem in and of itself, but (a) is only OK if the rate is truly representative of the risk (most of them, I for one am not sure it is) and the problem with (b) is that lots of lenders hit their max exposure to a particular DFL in the first few tranches and so by the later stages they are harder to fill. The CB and recent repayments of a few large loans have (along with the reduced pipeline of higher rate PBLs with sensible risk profiles across all platforms frankly) have helped as evidenced by the falling SM queues on longer-dated higher-rate loans, and while I have come back in recently I remain wary of what will happen post-Summer... What do you expect to happen post summer? Higher lending volumes and then a return to old habits?
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Post by lendinglawyer on Aug 8, 2017 10:46:02 GMT
gustapher yes, I do think higher lending volumes will come in September onwards. It's pretty standard for transactional business to be slow in general across July and August, and Lendy can only really continue to be profitable while continuing to write new business. Whether that means a return to "old habits", I guess we will see... While I also agree with SteveT (to an extent) I still think some of the bigger problems (in default terms) have been kicked down the road and when the true extent of those is felt it's hard to predict what will happen, as it's hard to predict the extent to which Lendy will decide to swallow the cost of shortfalls to retain investor goodwill from a "zero losses" perspective (I think they will for so long as they can to be honest). For now though, I am definitely more positive than I was about Lendy a couple of months back. There's no denying the repayment activity in July was most welcome.
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binkle
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Post by binkle on Aug 14, 2017 14:01:22 GMT
The one thing I would say is... Don't expect to be able to release large sums in the SM across ask loans, there are a good number with slow SM movement, and I do mean slow... Fine if in for the long term one hopes, but not if you need to use or want to move..
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