ashtondav
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Post by ashtondav on Feb 4, 2020 10:11:29 GMT
I guess we can only assume this year’s more conservative estimates are “more” accurate than last years. Whether they are accurate in “absolute” terms is anyone’s guess.
i have decided the draconian charges to sell up are too high (given alternative platform returns) and will risk this year, and ONLY this year in LW.
I believe they took the right decision but it’s execution and communication has been both incompetent and misleading - possibly because they themselves did not understand the implications for their lenders.
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ashtondav
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Post by ashtondav on Feb 3, 2020 18:52:43 GMT
And no response from LW towers - either on this forum or on their blog, where there is an imbecilic blog saying (basically) "all is well, as planned and expected".
It my be worth taking the 6% hit and moving to a better platform. It seems to me LW have no idea how their loans may perform, which is a pretty basic underwriting skill for any lending organisation.
Basically we were sucked in by an unrealsitic 6.5% projection. I guess we should have known better when no other (black box consumer/SME) p2p outfit were estimating anywhere near.
They didn't have a clue. And it looks like they've conned their customers - but still don't have a clue. Even Northern Rock had an inkling of the stuff that hit the fan.
I sniff the scent of an email to the Daily Wail...
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ashtondav
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Post by ashtondav on Feb 3, 2020 18:41:06 GMT
Dearie, dearie me..it is down to 75 pence today. Thankfully, even under the most pessimistic of the analysts that cover the stocks projections, it shouldn't run out of money for a few years yet. Unfortunately the rate at which my holding is being liquidated (through sale and repayment) means it will take a few years to get my cash out. A rather unpleasant race. Perhaps I am being hopelessly optimistic but I hope that in any unscheduled trading update, or in the annual result (due in March?) they can give some comfort as to cash burn. The stock market is almost giving up on them. FC, even before the recent c0ck ups, is a difficult sell to the funds and institutions that are the major buyers:
1. It is an unproven business model - screened out automatically for many major investors.
2. It is not (now) in the FTSE250 - screened out automatically for many major investors.
3. It is not a "recovery" stock - screened out automatically for many major investors.
4. It is not a "growth" stock (since its warning) - screened out automatically for many major investors.
5. It is not, and is not nearly, profitable - screened out automatically for many major investors.
As a a result the shares suffer from a very "thin" market. If you look at the trading volumes they are very low - mainly small private investors buying or selling.
The best hope for the SP will be if the shares are re-rated as a "recovery" stock. Either that or a "value" stock (its market value is less than its cash!) And that will require good news in March.
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ashtondav
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Post by ashtondav on Feb 3, 2020 12:29:52 GMT
Maybe i was not treading the small print - i expected my interest rate to fall from 6.5% to 5.4%. I had no problems with that but was sufficiently wary of the reasoning behind it that i sold 50% in December. I certainly didn't expect a sale fee approaching 6%.
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ashtondav
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Post by ashtondav on Feb 2, 2020 19:03:16 GMT
A poultry £4.28 on 7.5k in Classic.
I am speechless.
Woohoo! I beat you carol. £47 on £18,000. Annualized 3% in Classic Growth. That last word not to be taken literally. My informative weekly email still brags 5.4%. To paraphrase an old song, "When will I see that again?"
Can't complain. Much. But it does beat my 2.5% on FC this year.
P2P - you couldn't make up the incompetence.
Skullduggery and worse at RS, ZOPA, FC, FS, LW, - and they're just the ones i'm in! My only platform that has delivered (and only because i avoided GBBA and associated products) is AC QAA and 30 day.
My one consolation is that overall i'm still doing better than my building society accounts. But, oh boy there's a risk. And they had the gall to call it a "shield".
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ashtondav
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Post by ashtondav on Feb 2, 2020 15:33:17 GMT
Nice wedge just matched at 5%.
Now make me jealous of you higher rate peops...
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ashtondav
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Post by ashtondav on Feb 1, 2020 15:49:39 GMT
On a simple level this is a great idea and we have a panel of charities that we support. On the legal and technical side we need to look at it but I would hope its possible. I can see from this thread that those people who have a few loose ends on the platform versus their past holdings where those loose ends are necessarily tied up in loans that are dragging on in recoveries seem to want a 'donate it to someone' option. I suspect the driver is to avoid having to log in/ get emails/ have account risk as described eloquently above etc when its just a small balance. For those with larger balances in loans in active recovery and where we ourselves expect good outcomes yet to be realised but perhaps they are past caring we need to consider what happens if that investor view was too pessimistic and a recovery suddenly gives them a larger than expected recovery and they want to change their minds. Sometimes the death of the lender and clearing up the estate, as well?
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ashtondav
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Post by ashtondav on Feb 1, 2020 13:57:49 GMT
Very lucid and clear. Thanks. So new investors in 2020 can, indeed, be (confident) of hitting 5.4%?
Lets hope so because the older investors are not sticking around to test that particularly murky water...
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ashtondav
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Post by ashtondav on Feb 1, 2020 12:28:37 GMT
Finding it difficult to reconcile our views and experiences on this thread with the january update
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ashtondav
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Post by ashtondav on Feb 1, 2020 11:36:40 GMT
My partner's growth, £3.82 interest earned in January for £2.2k Investment, the hope would be the monthly interest would be back to normal before H2. Once a p2p platform goes pear shaped it rarely reverts to plan. I’m hoping but am prone to seeing pigs flying across the sky.
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ashtondav
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Post by ashtondav on Feb 1, 2020 9:46:01 GMT
I haven’t done the sums but it may even be worth paying the 5% or 6% and redeploying capital on a higher, more reliable platform.
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ashtondav
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Post by ashtondav on Jan 31, 2020 18:44:30 GMT
Got 6.5% on max a couple of days ago. There are rare spikes. Trick is to jump on them as soon as they are available. So why didn't i get matched on 5 year at 6%?
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ashtondav
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Funding Circle (FC)
Confused!
Jan 31, 2020 18:42:58 GMT
Post by ashtondav on Jan 31, 2020 18:42:58 GMT
FC is now an entirely automated black box. It works like this:- 1) You give them your money. 2) It is automatically invested in absolute rubbish. 3) After a number of defaults you realize you have made a dreadful mistake and ask for your money back 4) You go to the back of selling queue and stay there forever as your losses mount ---------------------------------- My recommendation is to avoid P2P altogether. If you want to lose money you could try throwing some coins out of the window every day, or perhaps perform combustion tests on plastic banknotes. Rumour has it that they've improved now. In fact not rumour 'cos FC give a tasty discount of over 1% for buyers of the "dodgy IPO" cohorts.
If you want your money quickly dont invest in p2p - even in the so called "access accounts". Many on FC were under the illusion that you could escape quickly - sadly you're in for the duration of the loan unless there is a buyer.
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ashtondav
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Post by ashtondav on Jan 31, 2020 18:37:45 GMT
The 90 day, 30 day, and quick access accounts are superb. Wouldn't touch any of the other accounts except MLA - which i haven't touched yet.
Very unclear PF which doesn't seem to pay out to many "defaults" in the GBBA accounts. I guess because the use of the PF is so "discretionary" it gives them more flexibility with lenders and borrowers.
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ashtondav
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Post by ashtondav on Jan 31, 2020 9:48:56 GMT
But the email i have just received tells me my "weekly rate" in Growth is 5.4%. It's not qualified with "projected", "estimated" or "guesstimated".
It just displays 5.4%. Shouldn't that email be, er, edited somewhat. Maybe "up to 5.4%" or between "3% and 5.4%?
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