blender
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Post by blender on Aug 26, 2017 21:04:54 GMT
Sounds right to me. The interest only loans should not be a problem because they are only property and property is being stopped. Only existing commitments continue - AIUI.
FC cannot have lenders make choices other than the two bundles. They make wrong choices and then will complain and will have to be compensated because the were mis-sold. Best to treat them all like Muppets.
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Post by grahamreeds on Aug 27, 2017 19:52:44 GMT
I've decided to leave some money in FC but look around end of September/October to see what is happening. I have a pleasure trip to Italy and then business to India so I will set Optimistic Prime (the leader of the Autobids) to Balanced and see what it does.
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mikeb
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Post by mikeb on Aug 27, 2017 20:02:56 GMT
There was lots of stuff to be picked off in the tails of seller's portfolios too, old favourites from the days of witty loan titles and variable rates. Plenty of parts that were well above the average rate, that would once have been held aloft as trophies by the closing-seconds-rate-chasers of old. This sort of stuff is well over the "hump of maximum risk" and is a real bargain IMO. I saw you, or rather your slightly more hyphenated doppelganger, picking off some of these from my portfolio  Monday was a busy day for me, due to FC's new slogan, rendered here as "Final, Nail, Coffin". So all the older "ready to sell should something better come along" parts were dumped. Along with all the "I'm holding multiple parts of these property loans and will sell them at 2 payments left" -- with no control any more on what to sell, and when, my strategy is knackered. All this has done has hastened the remaining wind-down, for me. Now just holding "Secured" loans from the early days and a wide scattering of property loans, and these will be gone before Sept 18, leaving only the pile of downgraded and bad debt to follow.
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mikeb
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Post by mikeb on Aug 27, 2017 20:17:27 GMT
Tough luck Pal, as a result of FC’s announcement “we're all in it together” as Call Me Dave and Gideon said. I hate to ask, but what is the "it" that we appear to be in? I have a theory ...
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Post by df on Aug 28, 2017 0:06:12 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! I thought so The emphasis is on simplicity. No point creating "sophisticated" autobid tools. I don't mind this change - lower returns, but less time consuming investment . 0.5% exposure sounds very good and I don't mind sharing a fair share of A+. So far, I'm not planning to withdraw or downsize. I'm going to keep my funds there as they are (certainly not at 'conservative' rate) and review on 18/09/2018.
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SteveT
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Post by SteveT on Aug 28, 2017 6:41:53 GMT
I thought so The emphasis is on simplicity. No point creating "sophisticated" autobid tools. I don't mind this change - lower returns, but less time consuming investment . 0.5% exposure sounds very good and I don't mind sharing a fair share of A+. So far, I'm not planning to withdraw or downsize. I'm going to keep my funds there as they are (certainly not at 'conservative' rate) and review on 18/09/2018. There's a 0.25% exposure option too
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Post by GSV3MIaC on Aug 28, 2017 7:25:45 GMT
Re: 0.25% .. There is at the moment .. not sure it is still there post 18/sept. The 1% option doesn't seem to be.
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pickles
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Post by pickles on Aug 28, 2017 8:06:00 GMT
So all the older "ready to sell should something better come along" parts were dumped. Along with all the "I'm holding multiple parts of these property loans and will sell them at 2 payments left" -- with no control any more on what to sell, and when, my strategy is knackered. All this has done has hastened the remaining wind-down, for me. I've been busy selling anything with fewer than 6 payments to go and buying into longer dated property. With no choice on what to sell the only option is to hold for 5 months then sell out everything. It's just occurred to me that the new regime requires you to choose a percentage for diversity - I've been happy to hold reasonable large positions in property loans on the basis they can be sold near to maturity. What will happen in Sept? Will the autobidder step in and force a sell-out of anything over the percentage? Then if I don't have autobuy turned on, my total will be lower which will push the percentage up again and it will sell another load?
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blender
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Post by blender on Aug 28, 2017 8:34:59 GMT
You're competing with my strategy, pickles. Fortunately we have two accounts, and so we have two sell dates for bundles of property, about 4 months and 7 months. The shuffles have resulted in an account that has 54% with one borrower. A proud diversity super-criminal ( no they will not sell it without permission). I suppose that if they have an IFISA for 2018/9 and introduce a 'Kamikaze' Autobid option, then we may consider it.
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rogerthat
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Post by rogerthat on Aug 28, 2017 9:08:18 GMT
There was lots of stuff to be picked off in the tails of seller's portfolios too, old favourites from the days of witty loan titles and variable rates. Plenty of parts that were well above the average rate, that would once have been held aloft as trophies by the closing-seconds-rate-chasers of old. This sort of stuff is well over the "hump of maximum risk" and is a real bargain IMO. Indeed..your description of me and undoubtedly others is poignant..big game hunters at the time though having said that, there were pitfalls. One loan in particular accounted (eventually) for around a 1/4 of my total debts over the 6 years...it was easy to get carried away at the time with rates (in effect) decided by the bidders themselves and some borrowers ended up paying exorbitant aggregated interest rates (which in hindsight did for a lot of them). In the early days FC even offered bonuses (in the form of cash back) for bidding above certain amounts. Of course, it couldn't last and I suspect that potential customer feedback signalled to FC that to increase borrower base the rates had to come down. And then the changes started....Bots (gobbling up swathes of loans) fixed rates, lower rates, finance houses getting first dibs on entire tranches, effectively sidelining those who had put their shoulders to the wheel in the early days. Increasing defaults and hence the emergence of the 'flipper' and perhaps the suspicion that DD was not what it should be. Also inevitably, the birth of countless more P2P's reduced the slice of the market cake. So we are where we are Ive sold what I can..and am now left hoping a handful might get resolved before much longer Happy days ?..on the whole yes Was it worth it ?..yes I suppose it was I know FC have to survive but the last raft of changes to be introduced on the 18th Sept only confirmed to me it was time to jump off the merry go round
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number5
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Post by number5 on Aug 28, 2017 9:19:09 GMT
You're competing with my strategy, pickles. Fortunately we have two accounts, and so we have two sell dates for bundles of property, about 4 months and 7 months. The shuffles have resulted in an account that has 54% with one borrower. A proud diversity super-criminal ( no they will not sell it without permission). I suppose that if they have an IFISA for 2018/9 and introduce a 'Kamikaze' Autobid option, then we may consider it. I am also following the same strategy, pickles & blender. However I am selling any below 12 months, sell out in 11 months. Hoping to use the funds at that time outside of p2p. If i do not select an option on autobid buying, my account will not buy any further loans? It will just wind down what I have, before I sell the lot right?
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Post by yorkshireman on Aug 28, 2017 10:40:07 GMT
Tough luck Pal, as a result of FC’s announcement “we're all in it together” as Call Me Dave and Gideon said. I hate to ask, but what is the "it" that we appear to be in? I have a theory ... Good question and I’m not sure of the answer! I bet Cameron and Osborne didn’t know either.
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pickles
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Post by pickles on Aug 28, 2017 11:13:37 GMT
You're competing with my strategy, pickles. Fortunately we have two accounts, and so we have two sell dates for bundles of property, about 4 months and 7 months. The shuffles have resulted in an account that has 54% with one borrower. A proud diversity super-criminal ( no they will not sell it without permission). I suppose that if they have an IFISA for 2018/9 and introduce a 'Kamikaze' Autobid option, then we may consider it. I am also following the same strategy, pickles & blender. However I am selling any below 12 months, sell out in 11 months. Hoping to use the funds at that time outside of p2p. If i do not select an option on autobid buying, my account will not buy any further loans? It will just wind down what I have, before I sell the lot right? Yes, that's right, it won't buy into any further loans without your say-so. What I'm worried about is whether it will sell to bring my account to the "right" amount of diversity.
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blender
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Post by blender on Aug 28, 2017 11:43:37 GMT
No, FC's bot will not sell any of your loans even if you turn it on. Autobid is a buy bot only. You will have to switch on Autosale to sell loan parts and tell it how much to sell in value. Then it might try to sell in a way which improves your diversity, but that would be a bit clever. Firstly , they need your explicit permission to sell your loan parts. Secondly, imagine the fun if Autobodge tried to get every portfolio to 0.5% through buying and selling autonomously. The large loan parts would be just one problem. The platform would explode!
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ceejay
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Post by ceejay on Aug 28, 2017 12:05:13 GMT
Another similar strategy here, up to a point. Since I won't be able to pick and choose buys or sells after the 18th, I'm rebalancing my portfolio now - turning over almost half of it in the process.
I've got rid of anything that ends in the next 8 months (ish), also anything that I had planned to sell in that time. Also increasing diversification (was over 200 loans, now well over 300) and pushing the risk profile up (average now C).
I will let FC's autobid do it's thing (on the higher risk setting) for a while, reinvesting returns. I imagine that it will be trying to reduce my average risk profile towards their target so will mostly buy A+/A, but it will be a long hard slog for it to make much progress on that if I've done my job properly.
Then I'll just sit and watch for a while, and take my attention elsewhere for some more active trading/entertainment.
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