ashtondav
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Post by ashtondav on Aug 17, 2018 6:43:00 GMT
If (1) can compete with the 6% net of fees currently available from RS, AC and LW it will be an attractive addition to the the p2p market.
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ashtondav
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Post by ashtondav on Aug 16, 2018 16:12:42 GMT
...just a few months ago it was £3M. Mass desertion?
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ashtondav
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Post by ashtondav on Aug 13, 2018 21:57:12 GMT
Yes, a nice little morsel hoovered up at 6%. Blimey if this continues I might even bung a few more grand into RS after a year’s holiday.
Just hope the dumb money stays away until next years ISA fest.
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ashtondav
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Post by ashtondav on Aug 13, 2018 7:49:04 GMT
Ah, fair point. Sorry! But if there are problems AC is not the quickest at recovery.
On a more general point lending to SMEs is inherently risky. Historical financial performance can look good, current trading can look good but a major client can cancel an order and ruin is imminent. And most SMEs are dependent on a small number of large customers. We are at the end of a recovery cycle that started in 2009. Defaults will increase in the coming months and years.
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ashtondav
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Post by ashtondav on Aug 12, 2018 17:44:09 GMT
I'd be very cautious...you may think you are getting 7% but likely you have a lot of 'late' and downgraded loans building up which will become future defaults. FC deliberately do not make this obvious to the casual investor. I would click sell and see how much of your loan book you are able to sell right now, knock 50% of the loans you can't sell (which is a fair estimate of future bad debts) off your interest received and see if you then still have a 7% return (very unlikely I would say). As for other platforms, Assetz Capital are now comfortably my biggest holding. You should get 7-8% there with all loans secured against real assets. Complete Bollo*cks!
The main fund covered by the PF is designed to deliver 6.25% (the GBBA2). The manual account, where you may get more is NOT covered by the PF.
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ashtondav
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Post by ashtondav on Aug 12, 2018 17:34:02 GMT
Always good to see someone investing in the company.
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ashtondav
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Post by ashtondav on Aug 11, 2018 8:56:27 GMT
Trouble is insiders will always scr*w you over. Company A has a fantastic financial year which ended two months ago. Trading in those two months is terrific. The CEO gets a phone call cancelling 20% of this year’s business. (In case you didn’t know most SMEs are very exposed to a few large clients). He then Applies for a loan, with historic and current trading looking super, to buy him time. Next month he defaults.
Simples. That SMEs for you, it’s a high risk lending game, and we’re at the end of a ten year recovery so yes defaults WILL get worse.
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ashtondav
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Post by ashtondav on Aug 10, 2018 18:22:59 GMT
Similar moans and groans over on the LC board. I'm sure "luck" plays a part in this.
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ashtondav
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Post by ashtondav on Aug 10, 2018 10:59:30 GMT
Call me a cynic, but whenever it is necessary to revise up the defults expected on a year they manage to offset the majority of the difference by reduced default expectations of other periods. Couple this with a history of initially under estimating defaults to show a large surplus for the current and (at least when this is small due to low loans accumulated) previous period before the defaults accumulate and the coverage ratio doesn't give me much comfort beyond that they are actively reviewing it! That siad, they have to date managed to sell off the defaulted loans held by the fund to raise additional funds and this has often followed periods of reduced "net" default expectations. So maybe they have plans for a further sale as a result of the increased defaults and this is what has actually occurred. I say this as I believed that the expected future defaults were based on the performance of a particular cohort of loans and so should impact all periods (subject to loan mix). It seems that they estimate the default rate on outstanding loans monthly and apply this for the following month, so the expectation variation in month is merely the difference between defaults occurring and the expected percentage on the loan repayments made. Accordingly the actual defaults does not effect the monthly reassesment only the change in the expectation of undefaulted loans as a result of loans that have defaulted. OK, cynic! why is the PF coverage so volatile. Two weeks ago it was 127%, now 122%!
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ashtondav
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Post by ashtondav on Aug 10, 2018 7:41:04 GMT
I think it started matching a while ago. I put some on at 6.0% yesterday, but it seems I've got ashtondav 's bung in front of me so I'm not convinced I'm going to get matched.
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ashtondav
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Post by ashtondav on Aug 10, 2018 7:39:10 GMT
It’s all relative. If you’ve got a company with super accounts you don’t need a working capital loan. Lending to SMEs is risky.
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ashtondav
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Post by ashtondav on Aug 8, 2018 18:20:26 GMT
Under £1M just now. I'll bung a few big ones in if we're looking at 6%+
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ashtondav
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Post by ashtondav on Aug 7, 2018 14:56:21 GMT
I won’t go below 5.8%, sometimes 5.7%. I’ve had funds loaned in the last two weeks. Nothing above 5.8%, though so I’m keeping the money in RS until month end when it either gets loaned out at my rates or it’s withdrawn and put into Lendingworks.
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ashtondav
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Post by ashtondav on Aug 7, 2018 12:57:16 GMT
Cashback of 1% offered by borrower/FS so all lenders pile into the loan. Quick before it's filled. The only thing i'm doing quickly is running for the exit, unfortunately without the Picasso and Chagall...
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ashtondav
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Post by ashtondav on Aug 5, 2018 14:34:55 GMT
David Stevenson has the share picking skills of a blind donkey. Quite how he survives in the FT is beyond me. Another class A clot to avoid on that rag is John Redwood - militant Brexiteer, who has the audacity to say Brexit will be good while at the same time advocating moving assets out of the UK.
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