GeorgeT
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Post by GeorgeT on May 15, 2017 10:53:47 GMT
Very good contributions here and I thank the authors.
This raises to a higher priority my concern that Lendy is still not fully FCA authorised and there would still seem to be a few hurdles in the way. The noises I am hearing are that nothing is going to change in that respect before the autumn.
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GeorgeT
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Post by GeorgeT on May 15, 2017 10:47:05 GMT
Given that the updates are issued on a Friday I think it's always very useful if they include a weather forecast for the weekend.
In addition, if any significant political or economic event has occurred in the previous week I think it should be brought to our attention in the update in case we didn't know about it. A case in point is the general election which I was very relieved to be informed about in one of the updates a couple of weeks ago.
I also like to see the use of a number of up-to-date buzzwords which a lot of people don't know the meaning of but which none the less instil confidence and make you believe they know what they are talking about and your money is safe with an expert.
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GeorgeT
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Post by GeorgeT on May 14, 2017 11:22:26 GMT
SM has been slow today, been able to get a few 200+ and 300+ days 12% loans Wow. High class loans. Congratulations. Yes indeed, the SM has gone slow again but it's Sunday and there's not a lot left on there though you have advised that this morning there have been some pieces of high quality up for grabs and congratulations to you for hunting them out.
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GeorgeT
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Post by GeorgeT on May 12, 2017 13:06:23 GMT
Fingers crossed for some positive news about Cheshire in today's pipeline update.
I haven't withdrawn my repayment monies in eager anticipation of that one.
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GeorgeT
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Post by GeorgeT on May 12, 2017 10:24:47 GMT
So there will be an extension of an unknown period of time. Do I cancel the sales and recoup £36.72 in interest and struggle to sell later? Or stay in the queue and get out in about 2 to 3 days when the loan parts are sold? If this wasn't a rhetorical question explaining the conundrum that is ongoing in your mind I would provide an answer. Bear in mind that £36 is a small price to pay to buy off all that uncertainty, concern, and risk. This one is selling very nicely now on the secondary market so my advice would be to seize the moment and exit the loan while you still can. If you change your mind it's such a big one there will always be availability for you on the secondary market.
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GeorgeT
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Post by GeorgeT on May 11, 2017 15:23:01 GMT
Common sense suggests that a 12% loan is more risky that one at 6%. Otherwise why is the borrower paying 12%+? So it would be prudent to adjust ones expected, or hoped for, net return from 12% loans. For example the net return could be reduced from 12% to 6% by: 15% of loans losing an average of 40% 12% of loans losing an average of 50% 10% of loans losing an average of 60% 6% of loans losing 100% A 100% loss may seem improbable but I know of several (I am holding them) that could go that way, not least because of the fees that the vultures administrators charge - up to £500 per hour. So a solid 6% loan on a residential property, properly valued and with a sensible LTV does not look so bad to me. Common sense might suggest that, but we have seen there is an apparent tendency for Lendy to price loans more by their size than by their risk. Nearly all the tiddlers are brought to the market at 7 or 8% yet the DD probers have advised that all is not always rosy with these loans. Conversely, most of the big loans are offered at 11 or 12%. It seems the rate has as much to do with attracting enough investors to fill the loan as the risk. The other point I would make is that the risk of platform failure and 'out of anyones control' economic/political factors is an underlying one that affects all loans equally and, to me, a single digit rate of return cannot compensate for those risks , regardless of the loan.
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GeorgeT
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Post by GeorgeT on May 11, 2017 15:15:05 GMT
Approximately £10.5 million has been repaid to investors in the last 17 days. And of course another month's interest on top. Another £2.5m approx is predicted by Lendy to be repaid in the next week.
I don't know how these numbers compare with the total £ of new loans launched and funded over this period but things appear to be roughly in equilibrium at present and the % of the total loanbook available on the SM would seem to support the current level of growth.
Just my view, and continuing lack of full FCA authorisation and number of defaults is a growing concern.
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GeorgeT
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Post by GeorgeT on May 11, 2017 9:53:29 GMT
Good to see the buying frenzy has carried over to today.
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GeorgeT
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Post by GeorgeT on May 11, 2017 2:21:18 GMT
I thought C-D was saying the opposite to me.
He wrote - "Many invest with the SM in mind, and thus avoid large loans and lower rate loans, as those are harder to sell in the event you want to sell on the SM
The other loans are smaller, easeier to seel so investor are happy to trade them
Not recommended IMHO"
I took it that he didn't recommend this approach, which is my approach, hence why I stated what I thought was the opposite. Sorry if I misunderstood.
I could be wrong but I sense that the majority operate like me but don't want to say it on the forum because they don't want others picking up on this winning strategy?
I try and approach the forum by trying to be helpful and sharing good information and advice. Have I got it all wrong? Is the name of the game to publically recommend the bad loans and tell people to avoid the good ones -so there is more for the forum posters. And to recommend risky strategies as being the best. I hope not, but I have questioned the motives of some posters and wonder if some peoples' posts are self serving.
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GeorgeT
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Post by GeorgeT on May 10, 2017 21:33:18 GMT
Hi all! I have a question about the selling behaviours of people that I have particularly noticed over the last couple of months and really can't comprehend. Why is it that people are desperate to sell some loans that have a good amount of positive days left and good interest rates (e.g. DFL004 Residential Development S****** F****** and PBL155 W******* Castle) which have hundreds of thousands of pounds available? Yet there are other loans which are in minus days (e.g PBL047 The Chase E****) and not many people are looking to sell their loan parts. Surely people would be looking to dump the loans in negative days or coming up to expected repayment date and these would be the ones I expect to have large sums of money available, rather than the ones that have lots of days in positive. I would really appreciate if somebody could explain what is going on or am I complete missing the point? Thanks! Many invest with the SM in mind, and thus avoid large loans and lower rate loans, as those are harder to sell in the event you want to sell on the SM The other loans are smaller, easeier to seel so investor are happy to trade them Not recommended IMHO, but that is the current market place. There is also the case that some of the loans hold good security, and savvy investors are happy to hold them I have to disagree with most of this. I recommend avoiding the lower rate loans and the very large loans for the exact reason that they are much more likely to become illiquid and people are much more likely to have to hold them until the potentially bitter end. I would also say that nobody savvy would hold a defaulted loan by choice. The outcome is massively uncertain in that situation and of course there is no interest on account, if at all. My strategy is to sell out of anything well before it can default thereby eliminating a large amount of the risk. My strategy is also to target the smaller, sub £3 million pound loans that are paying 12%. There was a beauty today. Although I am also happy to hold larger loans provided they have a long unexpired terms and are paying 12% to compensate me for the risk. I would say the perfect loan is at 12%, has 200+ days to run and is for a loan total of less than £3 million pounds. Any loan that meets these criteria will sell on the secondary market in the blink of an eye.
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GeorgeT
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Post by GeorgeT on May 10, 2017 21:12:26 GMT
To calm people's nerves can I just add to the above that a medium hitter has just taken a 20K chunk out of its sister loan DFL002 which was also very hard to shift on the secondary market. Suddenly in one bite it has become one of the biggest movers and groovers of the day. The good thing about this is that when others see the activity tab and see that somebody has eagerly grabbed 20K in one go they think they better be grabbing some too. I have worked out that the herd mentality is alive and well on the secondary market. Unfortunately 5 hours later, that £20k is still the most recent purchase of DFL002. It helps, but I'm still a long way back in the queue on this one. Your position should have improved quite a lot since you made this post.
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GeorgeT
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Post by GeorgeT on May 10, 2017 20:34:34 GMT
The SM has caught fire! The hamster is running at top speed - let's hope his legs can last another hour. Just had 10 sold loan parts in 20 minutes after a total sale drought yesterday! And more parts on the cusp of being bought. What a great day on Lendy. Why don't you sell them earlier, so they don't get stuck in a queue earning nothing? It's a fair point and if I'm honest I've had approximately 10K in sale queues out of a total investment of 70k for about the last two weeks. So yes I have lost some interest there. I got caught on the hop by a couple of loans that were selling very quickly within a day and so I decided to hold back on listing some of my other parts but then liquidity stopped almost overnight on a couple of them. One example I would mention is the Sussex Woodlands which was selling like hotcakes 2 or 3 weeks ago and then dried up in the last week. However despite my loss of interest I sold all of it today and the same applies to a couple of other loans. I am the first to admit it is a continuous learning curve on here for me because the goalposts are constantly moving in relation to supply and demand and staying one step ahead of the pack is always a bit of a challenge. However after today I am looking at my investments and I have nothing sub 100 days left and therefore I am confident that for now at least I have great liquidity. With some reluctance I sold out of the Sky loan today although it was a good loan but it had crept down to about 79 days left and I thought I would take the opportunity to shift it before other people even though it is relatively small and will probably remain very liquid for another month. I am a cautious investor and I am not concerned if every penny is earning me interest as long as I am generating an adequate income each month. As the member called freedom above has stated- what a day! Even some of the castle got sold and I got out of that. Fantastic.
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GeorgeT
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Post by GeorgeT on May 10, 2017 19:47:50 GMT
And right now they've got a trumpet to blow and the music is sounding very sweet and tuneful.
It's been a fantastic day on the platform and I would never have believed it myself when I went to bed last night.
Sale queues have been melting like snowmen in a hot sun. I have sold almost everything I had up for sale and sale emails are still trickling through. I was stuck in three loans that while they were 12% with many days to run were proving quite hard to shift but I have shifted everything I would want to shift within the next month in one day alone and as a result my portfolio is very pleasing to my eye. Not to mention that I was able to invest in another new 12% loan today.
You have to put these things into context and the context is of four years of this platform but within those parameters I would have to say today ranks as one of the greatest days since the formation of what we now know as Lendy.
I hope the day has been equally successful for others and a lot of the recent negativity has been blown away by today's events.
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GeorgeT
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Post by GeorgeT on May 10, 2017 15:31:06 GMT
The SM has caught fire! The hamster is running at top speed - let's hope his legs can last another hour.
Just had 10 sold loan parts in 20 minutes after a total sale drought yesterday! And more parts on the cusp of being bought.
What a great day on Lendy.
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GeorgeT
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Post by GeorgeT on May 10, 2017 15:25:10 GMT
There have been £10m of full repayments to investors since 25/4/17 alone.
What a fantastic performance.
The Repaid loans tab on the website makes for very pleasant viewing.
Lendy on the up again.
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