ashtondav
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Post by ashtondav on Jun 19, 2019 10:51:39 GMT
Yes it’s one of RS’s eternal mysteries, and it used to happen a lot more in the past.
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ashtondav
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Post by ashtondav on Jun 19, 2019 7:22:20 GMT
Also Zopa performed badly in 2016 and even more so in 2017, so while there will be many under target lenders there will be few over target. This is because Zopa missed the targets in those years by a fair way due to poor credit decisions leading to bigger than 'expected' defaults. Hmmmm, strange this fact because it applies over at FC in spades! The poor punters who bought the 2016/2017 early 2018 cohorts are having trouble selling these “dog” cohorts because FC don’t want to load up new investors with cr@p. Only those who invest through the cycle experiencing high and low bad debt and good and bad credit vetting, will achieve anywhere near projected rates. For the others it’s like selling shares at a market low - you guarantee you will underperform during the cycle, locking in losses or lower returns.
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ashtondav
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Post by ashtondav on Jun 18, 2019 21:19:08 GMT
The godfather had a good solution, he just needs a little “frightening”.
FS phone calls should do the trick.
Yawn...
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ashtondav
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Post by ashtondav on Jun 17, 2019 17:47:27 GMT
I would imagine they are bundling up decent loans and securitising them. They may spice them up with some of the cr@p you guys are selling (ie 2016/2018 cohorts) but not much, as everyone has been alerted by the investment trusts in this sphere just how cr@p these cohorts are.
So much of the action will be in bundling the 2019 cohorts which are (allegedly) better. Dumping the 2016/2018 loans will be a long process (as those here know) - because no one wants them as they’re “damaged goods”.
From the IT interim report issued in November 2018.
Since the Company published revised forward guidance on 29 June, it has realised a NAV total return of -0.4% (1 July – 30 November 2018) which represents a significant deviation versus earlier expectations. Evidence has now started to emerge through credit stress that this is largely, though not exclusively, attributable to the underperformance of certain UK loan cohorts from 2016 and 2017 and specifically in respect of younger businesses and/or those with guarantors with a low consumer score - typically borrowers assigned to Funding Circle’s higher risk bands. Funding Circle attributes performance degradation in this segment of the book to rising UK personal insolvencies as wages struggle to keep pace with the cost of living. Funding Circle has reacted to these developments by making changes to its pricing and credit strategy for the UK market during the past quarter, including incorporating data directly from an applicant’s bank into its latest risk model. It expects new loans written and acquired by the Company to yield 6-7% on an aggregated net basis following these changes. However, the Company’s exposure to the affected prior UK cohorts adversely impacts expected returns.
After this, of course FC downgraded returns further to 4.5% to 6%.
Those who are generous call it incompetence that will be corrected. The less generous are posting on here detailing the months it takes to flog the dead horses...
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ashtondav
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Post by ashtondav on Jun 15, 2019 16:10:29 GMT
Classic stats error of assuming linearity.
very little in life, economy, finance or stats is linear....
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ashtondav
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Post by ashtondav on Jun 15, 2019 8:40:23 GMT
ISAs do not have a better experience. There is no “transfer” from non isa to isa. The sellable loans are sold and the proceeds placed in the isa. Your non isa account will be left with the unsellable loans.
Similarly if you want to transfer your Zopa isa to another provider you can only sell your sellable loans and the proceeds will go to your new provider. The “rump” of unsellable loans will be transferred to a non isa Zopa account account, thereby losing you valuable tax savings.
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ashtondav
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Post by ashtondav on Jun 15, 2019 6:46:49 GMT
The company said the increased waiting times were not the result of a lack of demand from investors. A new approach attempts to ensure new customers are not matched with an unfair proportion of old loans that customers are seeking to sell, which may include an underperforming cohort. I don't see how this stacks up. Since you can't sell loans that are in any way looking iffy, hoovering up a large proportion of old (currently performing) loans is surely more desirable than going to the new loan pick'n'mix for a batch of loans which might or might not turn out to be duds in short order. I think FC’s reasoning stacks up. They know they have bad cohorts in 2017 and 2018, probably because they relaxed DD when going for growth and IPO, and I now suspect they have tightened up the DD now they need large funding to replace the FC Investment Trust, which like you guys is stuffed with cr@p and like you wants to sell up and go away. If the IT has as many problems selling as you guys then it’s going to be a long time before it is wound down and investors receive their cash. the FC credit chief is due to give his six monthly update at the end of this month. Watch this space....
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ashtondav
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Post by ashtondav on Jun 14, 2019 8:02:31 GMT
OK so here we are 14.06.19 - nearly 5 weeks after the last update and the deadline for payment. I am not exactly impressed ; so much for the new management. If I were in this one I would be furious but I am not so will update my mega top 40 this weekend with this being an anticipated 100% loss unless we get an update before Monday. Thought this thread was about the boat(s)...
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ashtondav
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Post by ashtondav on Jun 13, 2019 16:11:20 GMT
If what you suggest occurs the market will be down 30% to 50%. You will lose nowhere near that in FC.
You are comparing apples with pears.
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ashtondav
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Post by ashtondav on Jun 13, 2019 14:19:48 GMT
Take my word, Greggers, you can lose a lot more in OEICs - a lot more!
i remain of the view that if you keep invested in FC you are unlikely to lose money over the full (5 year cycle), which is after all why major institutional investors are investing. Can you earn more with other p2p platforms? Yes, even the AC access accounts are more competitive.
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ashtondav
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Post by ashtondav on Jun 9, 2019 10:07:56 GMT
I know it can vary according to demand but what is the usual time between issuing a sell order and funds being available?
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ashtondav
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Post by ashtondav on Jun 8, 2019 18:23:26 GMT
Sell the damn boat is the only option.
SELL THE DAMN BOAT!
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ashtondav
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Post by ashtondav on Jun 8, 2019 17:24:28 GMT
Come on FS. Take control of the fecking boat and give your lenders an exciting trip round the Solent. In fact, trips round the Solent May get some of our money back. Or sponsor Cowes week like good ole Lendy
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ashtondav
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Post by ashtondav on Jun 7, 2019 11:22:12 GMT
That seems to partially address the quantity of loans to be sold. Not the timing. The key issue is reducing an unreasonable 56 days to a more palatable 7 days or less. That hinges on the allocation of lender funds to new or pre-owned loans.
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ashtondav
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Post by ashtondav on Jun 7, 2019 8:25:34 GMT
Although I can opt out, Amex emails me a statement showing my balance each month in the body of the email. Most of my banks send an email advising me of a new statement with a clickable link.
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