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Post by jackpease on Aug 25, 2017 10:25:05 GMT
>>>There is no incentive for FC to do anymore than cursory checks I think there remains every incentive - FC has to make money for its investors otherwise its sunk! Ratesetter and Zopa operate the way FC is heading and work well enough. FC will not want to suffer the fate of Rebs and FK which are stagnant due to too many bad loans. Those who like to pick and choose their loans can head to Lendy etc and hope the information presented to them allows them to beat the odds Jack P
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adrian77
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Post by adrian77 on Aug 25, 2017 10:35:19 GMT
Ratesetter and Zopa operate the way FC is heading and work well enough.
Not exactly true - both of these other companies have a provisional fund and much better web site. I have money in both of these other companies and I sure am not going to take money out of them to put into FC! Maybe FC are too late and too incompetent to get into this market.
Personally I think FC should have stayed with the auction model as it was what a lot of us wanted and also I think it could have worked...
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Post by easteregg on Aug 25, 2017 11:19:10 GMT
Ratesetter and Zopa operate the way FC is heading and work well enough. Not exactly true - both of these other companies have a provisional fund and much better web site. I have money in both of these other companies and I sure am not going to take money out of them to put into FC! Maybe FC are too late and too incompetent to get into this market. Personally I think FC should have stayed with the auction model as it was what a lot of us wanted and also I think it could have worked... Ratesetter have a provision fund, Zopa introduced one and have removed it.
I think the issue is that as humans we don't really like change. Of the big three, Ratesetter is perhaps the only major platform that has kept the fundamentals of its lending system, but is also the only one of the big three that do not have full authorisation yet.
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Post by takeshi on Aug 25, 2017 11:32:04 GMT
It's certainly true that most of us are averse to change, but it's also true that zopa and fc are unrecognisable from what they were 3 years ago. Like joining a train spotters club, only for it to morph into a Latin dance class  |
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Post by GSV3MIaC on Aug 25, 2017 11:56:26 GMT
Personally I think FC should have stayed with the auction model as it was what a lot of us wanted and also I think it could have worked... I would have liked that too (with some control over too much/rapid bot bidding) but as I said somewhen-way-back it just doesn't scale well from 1000 punters bidding on 10 new loans per week to 100,000 punters trying to bid on 1000 new loans per week .. it could probably be made to work, to some level of acceptability, but FC didn't have a clue as to how to do so. All their systems, from front end to back end, were collapsing under the strain. Ditto with 'pick your borrower' (as ZOPA once were) personal loans. I just wish FC had been more upfront/honest about what they were doing and why, rather than spinning it like a top.
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rogerthat
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Post by rogerthat on Aug 25, 2017 12:13:49 GMT
Personally I think FC should have stayed with the auction model as it was what a lot of us wanted and also I think it could have worked... Agreed..as ive made clear countless times.. however one thing that has been forgotten here was the 'appearance' of a finance house (who's title escapes me atm)  whereby they were given 1st dibs on an increasing number of cherries..so 'new' loans were coming to market with the 1st and sometimes 2nd tranche already fully subscribed..the thin end of a very long wedge for me
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Post by crowdmember on Aug 25, 2017 17:13:12 GMT
I don't like the way that one of the only two options available is highlighted as Selected!
...or that it then says ''confirm choice''!
So you have to keep choosing 'ask me again later'.
I want a third option ''neither, no thanks, and no reinvestment!'', but I get the strange feeling that they are trying to push me into choosing one of their two miserable options.
( I would consider choosing a 'higher risk' option of just C, D, and E loans, though I doubt it)
As I understand the situation loans currently held will be run down as long as "Autobid" is off , but to have continued online access to the information on your loans as they run down you have to confirm agreement with new conditions. With Autobid off there would be no reinvestment (since this is the only way future investment will be made)
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Post by df on Aug 26, 2017 14:34:45 GMT
You would think that, given this is a compulsory process, the sale of part of a portfolio would be managed to maintain max diversity. With Autobid buying more than one part in a loan, max £100, they should plan to keep at least one part in as many loans as possible. Given the new autobid will only buy £100 max size pieces what happens to all the older £100+ size pieces if the owner want to sell their portfolio ? Are FC going to cut up all the £100+ parts into smaller chunks ? I guess the answer would be 'yes', they will split these parts into smaller chunks, there is no other way of doing it if the maximum exposure is to be £100.
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Post by df on Aug 26, 2017 14:47:52 GMT
Ratesetter and Zopa operate the way FC is heading and work well enough. Not exactly true - both of these other companies have a provisional fund and much better web site. I have money in both of these other companies and I sure am not going to take money out of them to put into FC! Maybe FC are too late and too incompetent to get into this market. Personally I think FC should have stayed with the auction model as it was what a lot of us wanted and also I think it could have worked... Zopa is abolishing its PF from Dec this year for any new loans, so in this respect Zopa will be the same as FC, but with lower returns. I think the new FC will be generally more attractive to new investors than RS and Zopa.
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r00lish67
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Post by r00lish67 on Aug 26, 2017 15:13:24 GMT
Given the new autobid will only buy £100 max size pieces what happens to all the older £100+ size pieces if the owner want to sell their portfolio ? Are FC going to cut up all the £100+ parts into smaller chunks ? I guess the answer would be 'yes', they will split these parts into smaller chunks, there is no other way of doing it if the maximum exposure is to be £100. Apparently not actually, as I asked FC this question. Their response: "After the 18th September the biggest loan parts bought on the primary market will be £100, you will still be able to sell larger loan parts after this point. The Autobid will match up these larger loan parts to accounts that have enough funds for it to still make up 0.5% or less of their entire portfolio. Due to the contracts between investors and borrowers we are unable to break up existing loan parts"
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blender
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Post by blender on Aug 26, 2017 15:24:28 GMT
Given the new autobid will only buy £100 max size pieces what happens to all the older £100+ size pieces if the owner want to sell their portfolio ? Are FC going to cut up all the £100+ parts into smaller chunks ? I guess the answer would be 'yes', they will split these parts into smaller chunks, there is no other way of doing it if the maximum exposure is to be £100. The new T&Cs do say that you can sell your loan parts, and there is nothing placing a max size of the parts which can be sold - other than whole loans. A system which limited the size of parts which can be bought on the SM, well below the size of loans which can be offered for sale on the SM, would appear to break their T&Cs, as well as be unfair treatment of those who have previously bought larger loan parts in the expectation of being able to sell them when needed. Especially when the large parts were bought as a consequence of the method of operation of their old Autobid, not chosen manually. They have not said that we should sell parts over £100 before 18th Sept if we do not agree to keep them to term. Of course when we ask to sell some loans, they could select smaller parts, but that might compromise diversity, which must be their main consideration when making sales. I conclude that they must have some way of dealing with those who wish to sell large parts after 18th. Maybe some intervention by a special institutional buyer.
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Post by df on Aug 26, 2017 15:36:58 GMT
I guess the answer would be 'yes', they will split these parts into smaller chunks, there is no other way of doing it if the maximum exposure is to be £100. Apparently not actually, as I asked FC this question. Their response: "After the 18th September the biggest loan parts bought on the primary market will be £100, you will still be able to sell larger loan parts after this point. The Autobid will match up these larger loan parts to accounts that have enough funds for it to still make up 0.5% or less of their entire portfolio. Due to the contracts between investors and borrowers we are unable to break up existing loan parts" Do you know if new autobid will have a facility to set the minimum amount invested in each loan?
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blender
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Post by blender on Aug 26, 2017 17:11:15 GMT
Thanks df. So if you have a £2000 property loan part you need someone with a £400k account minimum. I think the smallest part on the PM will be £20, and on the SM almost zero.
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Post by df on Aug 26, 2017 19:17:19 GMT
Thanks df. So if you have a £2000 property loan part you need someone with a £400k account minimum. I think the smallest part on the PM will be £20, and on the SM almost zero. My two main concerns about new T&C are: 1. Will I be able to maintain my maximum exposure at 0.4%? 2. Would I be able to opt out from 'interest only' loans? I'm also wondering what happened with the plan to discontinue property loans? I recall there was an e-mail a while ago saying that they are going to stop introducing new property loans, but I can still see them appearing on 'loan requests'.
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Post by GSV3MIaC on Aug 26, 2017 20:41:09 GMT
AIUI (which may be wrong)
1) No .. 0.5% is what you get (I guess it you add 20% to your account EVERY DAY, you could wind it back to 0.4%).
2) No .. no picking of any sort (I'd like to avoid loans to welsh scrapyards, layers, and anyone wanting to pay their tax bill). They probably won't tell you whether the loan in interest only anyway, they probably won't tell you anything, which will cut down on listing errors.
Wouldn't it be nice to have a PROPER autobid/bot system where you could set your own criteria, as complex as you like, subject only to a) you could not buy more than 'your fair share' in any loan (£ available / number of would-be buyers) and b) you could only resell to another bot, or manual buyer (no 'dump it on granny at par'). Leave the autobiddies to buy/sell automagically (always at par) their fair share of 'everything'. Problem is FC want you yo have your fair share of 5% A+ loans, whether YOU want them or not .. they have loans to fill!
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whereby they were given 1st dibs on an increasing number of cherries..so 'new' loans were coming to market with the 1st and sometimes 2nd tranche already fully subscribed..the thin end of a very long wedge for me
