david42
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Post by david42 on Sept 16, 2016 7:02:14 GMT
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david42
Member of DD Central
Posts: 419
Likes: 346
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Post by david42 on Sept 2, 2016 14:02:29 GMT
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david42
Member of DD Central
Posts: 419
Likes: 346
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Post by david42 on Aug 30, 2016 23:04:13 GMT
I hope that stevethatcher may be able to tell us whether there has been a successful claim on personal guarantee insurance. Steve created personal guarantee insurance and he has previously offered to answer questions on this forum. Apparantly there was a default with PGI on Thin Cats, but we have not been told the outcome: p2pindependentforum.com/post/101496/thread
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david42
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Post by david42 on Aug 28, 2016 19:07:12 GMT
Please can you share your experience of how easy it is to operate a Sippclub Evolution SIPP? Having started applying I am worried that the 7 separate application forms totalling 33 pages, all to be signed and returned on paper, suggest ongoing operation might also be bureaucratic if Greyfriars have not moved into the world of online account management.
Specifically - how easy is it to move money between different P2P platforms within the SIPP wrapper? - Greyfriars Trustees need to be the first named investor on each P2P account. Can we still manage our investments within each platform online just as easily as we can manage our personal accounts with these platforms?
I am wondering whether I should delay moving my SIPP for another 6 months in the hope that we get a competitor in this space with a more modern and efficient product?
Thank you
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david42
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Post by david42 on Aug 27, 2016 20:41:59 GMT
Email just received from Greyfriars, who manage the SIPPclub Evolution SIPP: "I regret to inform you that the Evolution SIPP has been closed to New Business we will therefore be unable to accept your application." Update: SIPPClub has persuaded the SIPP administrator to continue to accept new SIPP applications for a further 6 months. Further update: Greyfriars have again rejected my application. Their claim to be open for new business for the next 6 months is misleading.
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david42
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Post by david42 on Aug 22, 2016 23:37:34 GMT
Was it difficult to get started in this - I've signed up for demo accounts in the past but wasn't sure where to begin. Do you have any recommendations for websites/forums? I don't know the best way to get started with futures trading from scratch. My route in won't help you. You might try the forum www.trade2win.com which seems to come up with answers in a lot of my searches. I learnt about futures and options pricing thirty years ago by reading the introductory material from IG Index then reading some of the text books on option pricing theory. (Wikipedia had not been invented.) If you stick with futures rather than options, there is less to learn. When I wanted to gear up my P2P lending, I went back to IG Index because they had provided a lot of support in the past. Sure enough, as soon as I opened the account I was contacted by someone who said his job was to answer any questions while I got used to the platform. He gave me some helpful pointers. IG Index also sent me a lot of training material, which I did not bother to read. I did not make much use of the demo account. I just placed a small real bet to start with, so that I could see how the real money worked. Starting from scratch, you need to learn - how futures are priced (arbitrage ensures that future price = spot price + financing cost for the time - any dividends to be paid over the time). Nothing to do with where people think the price might move to. - how spread betting works. The demo account can help here. It is easy to get a factor of ten wrong, or worse, if you fail to understand exactly what you are betting on. I once placed a bet in the opposite direction to the one I wanted. - once you understand futures, using them to gear your P2P portfolio is just a matter of deciding on your strategy.
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david42
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Post by david42 on Aug 22, 2016 17:36:10 GMT
I leverage my P2P investments along the lines dinisrr suggested. This doubles the risk and doubles the return. It is complicated and needs a lot of monitoring and maintenance. I have been doing it for nearly a year. I release cash by selling my FTSE 100 tracker funds, and replacing them with FTSE 100 futures bets purchased through IG.com. I invest most of the cash released in Peer to Peer. Costs Futures are cheap at the moment, because the future financing cost is linked to interest rates. I don’t have enough information to back calculate the inbuilt future financing cost but it seems to be less than 1% pa. I use the same approach for the S&P 500. But other futures I have looked at, like the FTSE 250, have prohibitively high bid-offer spreads. Risks and Mitigation Margin calls: when the index falls, I need to repay the cash that I released. I protect against crashes by buying put options at around 20% below the current index (cost around 1% pa). And I keep enough idle cash to cover market falls of up to 20%. Benefits As well as releasing extra cash for P2P investing, this approach has tax benefits compared to direct stock market investment because share index gains accumulate tax free and the dividends are built into the futures price so they accumulate tax free.
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david42
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Post by david42 on Aug 20, 2016 13:13:19 GMT
But when/if you change it, does it change everything (as per the SS default prefund), or does it just change the default for =future= 'opt in' boxes, and leave the existing ones (whatever 'existing' means) as is? I get cross when the SS one changes everything I had carefully manually set. I agree that the Saving Stream prefund setting is an excellent example of how not to apply a global setting That is why I propose the function should be " default rollover setting". To me a default setting means it does not apply to anything you have already set individually. I would also expect a change to a default setting would only affect future purchases. If you want to change the settings on your existing holdings you would need to change them individually, like you do now. I consider that behaviour reasonably safe and unlikely to cause confusion.
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david42
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Post by david42 on Aug 20, 2016 8:59:38 GMT
The toggle should be called "default rollover setting", buried away in our account settings for advanced investors to find. It would set the initial value of the setting to be applied for new loans, which we could then override for individual loans. Calling it "default rollover setting" removes some of the ambiguity, and hiding it away avoids complication for those who don't want it.
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david42
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Post by david42 on Aug 19, 2016 9:57:42 GMT
Well done trilby for provoking Saving Stream into replying. They have not yet replied to my email. I had given up trying to get them to respond on this forum. Update: Tim replied to my email at 11am today. I have checked my account and I now have all my interest.
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david42
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Post by david42 on Aug 18, 2016 11:00:12 GMT
I have not yet had a reply to the email I sent Saving Stream on 13th July about my missing July interest for the loan parts I put up for sale on 1st August. It is unusual for Saving Stream to be so slow responding. I am reluctant to chase them too quickly as they may want to understand and fix the problem before resplying to me. Until this is fixed I will be avoiding putting parts up for sale until the monthly interest payment run has completed.
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david42
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Post by david42 on Aug 15, 2016 14:08:47 GMT
Email just received from Greyfriars, who manage the SIPPclub Evolution SIPP: "I regret to inform you that the Evolution SIPP has been closed to New Business we will therefore be unable to accept your application."
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david42
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Post by david42 on Aug 13, 2016 22:49:50 GMT
Okay, you've convinced me that you are supposed to get interest payments for parts that are on sale, which means that my real problem is more specific than my example. I'd better start again with my real problem! -Loan part for £1,400 bought on 25th May -Correct interest payments received for May (£3.22) and June (£13.81) -Part put up for sale on 1st August, 9.13am -Interest run happened on 1st August, about 10.50am according to posts at the time -Part sold on 1st August, 11.27am The problem is that I didn't receive any interest for this part on 1st August, and I haven't received any since, so July's interest (£14.27) is still outstanding. The only four transactions showing in my account for this part are the purchase, the May and June interest, and the sale. If I look at the part under "Sold Loanparts", it shows the correct start and end dates (25th May to 1st August) and the correct interest amount (£31.30) which is the total of the interest I have received (£3.22 + £13.81) and the interest I haven't (£14.27). There's hope that the outstanding amount may turn up on 1st September, I'll have to contact SS if not as something unusual has clearly happened. TL;DR: Avoid selling loan parts on the first of the month before the interest run has happened, and if you ever have done then check your interest payments on those parts! I have found the same issue. I put three loan parts up for sale on 1st August before the interest payment run and I received no July interest for those loan parts. I have just written to Saving Stream. I will report back when I get a reply.
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david42
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Post by david42 on Aug 12, 2016 18:47:03 GMT
Now that BondMason have added the new feature to speed up initial investment by diversifying our existing loans into newer ones, I would expect that, if rates fall over time, our existing holdings will get taken off us and we will get diversified into newer loans with lower average rates.
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david42
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Post by david42 on Aug 12, 2016 9:57:57 GMT
Thank you, ablrate for bringing us this interesting opportunity. I had intended to invest in this attractive 13% 3 year amortizing loan backed by a good set of security, but initial investigation leaves concerns that would need to be addressed before I could invest: 1) building security - how are these modular units building valued? These multi storey buildings will not be cheap to relocate so unless you tell me otherwise I assume their value depends on them being used at the polo club. 2) polo club security - what gives you confidence that the polo club can service the rent for the next three years? The polo club accounts show net worth reducing rapidly each year, down to -£530k in 2015. So maybe I need to rely on the PG as he sounds like a dynamic entrepreneur with many assets. 3) PG security - a company check on the personal guarantor shows net worth of minus £2.2M. Can you explain why the companycheck.co.uk view differs so significantly from the credit report and asset statement on the Ablrate site? Concern 3 is not relevant as explained by wysiati here: p2pindependentforum.com/post/134112/thread
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