|
|
Post by mrclondon on Oct 6, 2014 22:43:02 GMT
Is there anyone here that placed a shadow bid? If so, have you been told how much your bid will be scaled back? I'm curious whether fundingsecure scaled back all shadow bids proportionally, or whether only bids above the £500 maximum were scaled back. Is tomorrow going to turn into a 'fastest finger' event? The shadow bid call was for 80% of the amount originally bid. (And IIRC the minimum shadow bid allowed was £1,000). But the big unknown is how many shadow bids have been withdrawn due to the unexpected long delay ... we have been given 2 opportunies to pull out.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 7, 2014 0:03:44 GMT
Is there anyone here that placed a shadow bid? If so, have you been told how much your bid will be scaled back? I'm curious whether fundingsecure scaled back all shadow bids proportionally, or whether only bids above the £500 maximum were scaled back. Is tomorrow going to turn into a 'fastest finger' event? The shadow bid call was for 80% of the amount originally bid. (And IIRC the minimum shadow bid allowed was £1,000). But the big unknown is how many shadow bids have been withdrawn due to the unexpected long delay ... we have been given 2 opportunies to pull out. I raised my questions with FS when I asked them to confirm they had received the money I transferred in. I wasn't expecting a response until the morning, but I got one just before midnight. Full marks to FS for that! Anyway, the response included... Between mrclondon's report of a 20% scaling back, and FS's suggestion of what they're expecting to be remaining to fund, it looks like about £45k of the original shadow bids were left after withdrawals but before the scaling back. And it looks like those bidding tomorrow shouldn't need to panic that the loan will fill instantly.
|
|
Bagman
Member of DD Central
Posts: 209 
Likes: 131
|
Post by Bagman on Oct 7, 2014 15:56:21 GMT
There is still just under £4000 left of this one to fund, so not too much of a mad scramble today  |
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 7, 2014 18:54:35 GMT
There is still just under £4000 left of this one to fund, so not too much of a mad scramble today Did anyone notice when this loan appeared on the website? And/or how much of it was available when it first appeared? If there's still a bit of funding required when the first 24 hours is up, there could be a scramble caused by lenders trying to pick up a bit more of this loan than they have already.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Oct 8, 2014 13:29:51 GMT
There is still just under £4000 left of this one to fund, so not too much of a mad scramble today Did anyone notice when this loan appeared on the website? And/or how much of it was available when it first appeared? If there's still a bit of funding required when the first 24 hours is up, there could be a scramble caused by lenders trying to pick up a bit more of this loan than they have already. There was a scramble, and the last of the loan was taken up in a hurry. I wasn't fast enough. 
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Apr 11, 2015 12:30:06 GMT
Most recent info...
The one thing about the potential renewal of this loan that I really don't understand is why, if the borrower wishes to extend the loan and increase the amount, FS expect the lenders to take the renewal loan -- with its higher LTV (32% instead of 20%) -- at a lower interest rate (12% vs. 13%), as indicated on the list of Upcoming Loans.
I wouldn't have thought that the borrower would expect to renew on better terms than the original loan, so are FS just getting greedy and hoping to increase their share of the interest/fees at the expense of their lenders?
|
|
ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
Posts: 1,370
Likes: 857
|
Post by ramblin rose on Apr 11, 2015 15:15:35 GMT
I wouldn't have thought that the borrower would expect to renew on better terms than the original loan, so are FS just getting greedy and hoping to increase their share of the interest/fees at the expense of their lenders? The beautiful microsculptures are also renewing at a lower rate this month too; it's an inevitable trend now that there are more lenders here, most of whom are happy enough to accept the lower rates.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Apr 11, 2015 16:20:55 GMT
I wouldn't have thought that the borrower would expect to renew on better terms than the original loan, so are FS just getting greedy and hoping to increase their share of the interest/fees at the expense of their lenders? The beautiful microsculptures are also renewing at a lower rate this month too; it's an inevitable trend now that there are more lenders here, most of whom are happy enough to accept the lower rates. Not sure what to make of the microsculptures as they are renewing 4 weeks in advance at a lower interest rate. Okay it's only a 1% difference and 4 weeks early but obviously FS feel they have enough lenders on board so I expect the old 13% will no longer be the 'normal' and then probably 12% will no longer be the 'normal' and so on. Maybe time to scale back my involvement.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Apr 11, 2015 16:37:28 GMT
Most recent info... The one thing about the potential renewal of this loan that I really don't understand is why, if the borrower wishes to extend the loan and increase the amount, FS expect the lenders to take the renewal loan -- with its higher LTV (32% instead of 20%) -- at a lower interest rate (12% vs. 13%), as indicated on the list of Upcoming Loans. I wouldn't have thought that the borrower would expect to renew on better terms than the original loan, so are FS just getting greedy and hoping to increase their share of the interest/fees at the expense of their lenders? Not sure I'd go as far as calling it greedy but more of a supply and demand issue. Clearly FS feel they have built up the demand enough to shave a percent here and there which will all add to their bottom line. One thing that is apparent in the P2P world, same as the banks - loyalty counts for very little irrespective as to what the platform states in it's early days which I take with a larger than normal pinch of salt.
|
|
|
|
Post by mrclondon on Apr 11, 2015 17:42:59 GMT
I suppose it's just about possible to construct a case for the microscultures yield reducing to 12% on the basis of a communicative borrower who has stumped up renewal funds before due. With the comic book loan now well overdue and the proposed increase in LTV any reduction in yield is taking the proverbial.
Whilst SS and MT have standard lender rates of 12%, the former has a provision fund (and a secondary market), and the latter has a partnership buy back of most loans on default. FS has no provision fund, no secondary market, and a patchy record of liquidating defaulted assets. Its now 4.5 months since the maturity date of the Lubin art loan, zero recovery so far, and FS have warned that its very unlikely all the accrued interest will be recovered despite a LTV of only 40%. With two more sizable loans on the verge of default, both with assets that could be slow to sell, the overall returns from FS are looking poor compared to other platforms which have mechanisms to cover at least some default losses.
|
|
sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
|
Post by sqh on Apr 11, 2015 19:53:39 GMT
I was always wary of this one for two reasons.
(i) It's a single item, whereas the items in default can be divided up and sold separately, I don't think selling individual pages of a comic works.
(ii) The valuation (which appears to have gone missing) grades the comic way below mint condition, and it's been restored. I'm not an expert, but I have heard the phrase "condition is everything".
NB, FS originally approved the loan for £75k.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Apr 11, 2015 21:50:34 GMT
<snip>
With two more sizable loans on the verge of default, both with assets that could be slow to sell, the overall returns from FS are looking poor compared to other platforms which have mechanisms to cover at least some default losses. Just maybe the gloss is going from FS - not scientific but the poll here doesn't exactly get them off the mark. Then again most P2P lenders do not visit these forums so..........
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,315
Likes: 11,524
|
Post by ilmoro on Apr 12, 2015 0:41:36 GMT
<snip>
With two more sizable loans on the verge of default, both with assets that could be slow to sell, the overall returns from FS are looking poor compared to other platforms which have mechanisms to cover at least some default losses. Just maybe the gloss is going from FS - not scientific but the poll here doesn't exactly get them off the mark. Then again most P2P lenders do not visit these forums so.......... I suspect that is the nature of the poll. If there were the option to vote more than once I suspect it would be up there but with a forced choice MT probably takes the votes as its newer and on paper more secure with the the guarenteed buy back. Besides Ed seems like a good bloke & theyve got the 'Shaung'. Poor old faceless FS just cant complete
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Apr 12, 2015 1:53:57 GMT
I suppose it's just about possible to construct a case for the microscultures yield reducing to 12% on the basis of a communicative borrower who has stumped up renewal funds before due. With the comic book loan now well overdue and the proposed increase in LTV any reduction in yield is taking the proverbial. If the comic book loan were to be a straight renewal on the same terms as the initial loan, then I would have been willing to increase my investment to fill the gap produced by those lenders who do not wish to roll their investment over. The way it's heading, however, with an increased LTV and a reduced interest rate, I certainly will not be increasing my investment by any significant amount. Whilst SS and MT have standard lender rates of 12%, the former has a provision fund (and a secondary market), and the latter has a partnership buy back of most loans on default. FS has no provision fund, no secondary market, and a patchy record of liquidating defaulted assets. Its now 4.5 months since the maturity date of the Lubin art loan, zero recovery so far, and FS have warned that its very unlikely all the accrued interest will be recovered despite a LTV of only 40%.That the Lubins loan is taking so long to wind up, and might not achieve a full recovery despite the very low LTV, is quite worrying. If those paintings aren't sold reasonably soon, then the second Lubin loan will be coming up to maturity. And if the sale proceeds come up short then there's a good chance that the borrower might deliberately not try to redeem the second loan, especially if it was still at 57% LTV. If FS can't achieve full recovery with a 40% LTV loan, what hope is there for recovery from a 57% LTV loan? With two more sizable loans on the verge of default, both with assets that could be slow to sell, the overall returns from FS are looking poor compared to other platforms which have mechanisms to cover at least some default losses. I presume one of those two is the silk carpets loan. Which is the other?
|
|
|
|
Post by elljay on Apr 12, 2015 8:11:07 GMT
If FS can't achieve full recovery with a 40% LTV loan, what hope is there for recovery from a 57% LTV loan? Only goes to prove (hopefully not) the old adage that something's only worth what someone will actually pay for it. Valuations on high value items that have a small market must have a very high uncertainty factor. If the right person is in the auction room... Or even better two people that want the item...
|
|
