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Post by Financial Thing on May 14, 2016 14:43:41 GMT
Today I loath SS. I loath the fact I picked out my wanted allocation and was given a small percent of that low allocation I loath the "I am not a robot" box I loath the fact that by the time I click on a secondary market piece, £0.00 is available I loath that by the time I've picked out the pancake pictures, £0.00 is available I loath the "We Couldn't Place Your Investment" page (and I loath the person who keeps putting up £5 pieces for sale) Maybe tomorrow I'll like SS again but today, I loath thee. Rant over.... - OT
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Post by Financial Thing on May 11, 2016 13:23:07 GMT
Is it just me, or have PP just removed the ability to sort properties by share price discount percentage, as well as any indication of the nominal share valuation and the associated discount/premium at the secondary market price from the properties page? Seems like they might be getting worried about the effect the discounts are having on the platform as a whole... Obviously a naughty intentional move. Currently to a new investor the information appears as if the share prices are rising nicely so to say "hey if you invest with us, you'll see valuation increases". By hiding the discounted shares it as the current display shows more favorable investment outlooks than having discounts plastered all over the place.
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Wellesley & Co (W&Co) in Administration
Rate Reductions
May 11, 2016 12:53:26 GMT
Post by Financial Thing on May 11, 2016 12:53:26 GMT
Landbay referral required please.
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General P2x Discussion
Lending Club
May 11, 2016 12:49:02 GMT
Post by Financial Thing on May 11, 2016 12:49:02 GMT
Just goes to show how a poor decision by management can tumble a company or at the very least, send it into turmoil. Hence the reason I never buy single stocks.
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General P2x Discussion
Lending Club
May 11, 2016 12:45:32 GMT
Post by Financial Thing on May 11, 2016 12:45:32 GMT
Investment banks and institutions are the death touch to most things good in the finance world. Unfortunately businesses gobble up offers of institution money due to the desire for rapid growth and expansion (and greed). Hopefully there are a few smaller p2p companies that don't desire to become a behemoth operation ( MoneyThing) and keep institutional money out and operations manageable.
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General P2x Discussion
Lending Club
May 9, 2016 18:10:16 GMT
Post by Financial Thing on May 9, 2016 18:10:16 GMT
This is bad news for the whole p2p lending industry. If LC fails then confidence in p2p will plummet.
Lending Club is a great example why investing in unsecured p2p loans is a bad idea.
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Post by Financial Thing on May 9, 2016 17:17:15 GMT
All good answers here....
I used to think platform size equated to safety but now I'm not sure size of platform should make one feel more or less comfortable in regards to safety. You would naturally think the larger the platform, the safer the platform but history has shown billion £ companies can fold as easily as small companies. Smaller companies are often are able to plod along through tough economic times due to less exposure / expenses to shoulder. Vice versa also.
P2p investments are calculated gambles. One Directors decision could make a company crumble (hopefully the apple variety rather than the bankrupt variety).
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Post by Financial Thing on May 1, 2016 17:03:13 GMT
too much for me to read through but thanks for letting me know.
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Post by Financial Thing on May 1, 2016 16:17:26 GMT
a google search of 'ratesetter provision fund' still has the FT article 'RateSetter made peer-to-peer loans from contingency fund' as the 2nd highest result... Thanks for posting this as I had no idea Ratesetter used PF monies to fund loans.... Bitterly disappointing and a real head scratcher!
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Wellesley & Co (W&Co) in Administration
Rate Reductions
Apr 26, 2016 12:38:00 GMT
Post by Financial Thing on Apr 26, 2016 12:38:00 GMT
Earlier this afternoon the rates page on the W&Co website www.wellesley.co.uk/products/peer-to-peer-lending/ was refreshed.
The monthly term has been removed as has the 18 month term, to be replaced with new 2 and 4 year terms.
The 1 year rate is unchanged, but small reductions on both 3 & 5 year rates have been implemented.
Here's my usual table of XIRR (which is almost identical to AER ) of the new rates:
E&OE Wow, that's a big change for W&Co. I bet it'll have a few people heading for the exits.
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Post by Financial Thing on Apr 26, 2016 12:34:44 GMT
I'd be happy to get bulk emails saying, "hey, you just got paid" I just don't want the email sayings "hey, someone defaulted"
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Post by Financial Thing on Apr 25, 2016 15:24:12 GMT
The harder issue with these loans is the ethics in ultimately lending people money to buy relatively high priced cars at such APR's.
If we considered only investing based on ethics, it would rule out a good portion of p2p lending.
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Post by Financial Thing on Apr 21, 2016 12:33:39 GMT
But if platforms don't grow and become profitable, eventually they will be forced to close (especially the smaller one's) and surely this would cause losses to investors. I haven't seen many platforms that posted profitable numbers. Most are losing money or breaking even. If regulated platforms are following the rules, then there shouldn't be losses to investors -- because the platforms are supposed to have plans in place for the orderly rundown of their loan books in the event of their inability to continue. If they don't, then the regulators will have failed to do their job appropriately.That hasn't happened before now has it
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Post by Financial Thing on Apr 20, 2016 21:46:11 GMT
As far as risk, one of the biggest IMO is consumer confidence. If everyone heads for the exits, the platform may struggle to survive. Everyone heading for the exit certainly wouldn't do the platform any good. It would impair their ability to fund new loans, and existing investors would be locked in until loans mature. But on it's own it shouldn't cause losses to investors unless the property market tanks as well, borrowers can't repay loans, and the security held can't be sold for enough to cover investors' capital. But if platforms don't grow and become profitable, eventually they will be forced to close (especially the smaller one's) and surely this would cause losses to investors. I haven't seen many platforms that posted profitable numbers. Most are losing money or breaking even.
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Post by Financial Thing on Apr 20, 2016 20:45:35 GMT
Very true. The risk associated with these 12% platforms is quite high. The longer one is invested, the more complacency kicks in. When the stock market goes pop and consumer confidence falls, the real test of p2p sustainability will begin. Financial Thing I always find it interesting when folks quote the stock market with regards to P2P, in 1999 the stock market was 6900&odd , in the last 17 years it has only gone above 7000 once, today 6400, and its a 2016 high, stocks in the UK are under-priced at the moment, dragged down in recent years by , BP, TESCO, and virtually all the banks, but i dont see any pressure now or in the near future, even with brexit in mind, brexit either way may have a short term effect, but i will be expecting UK stocks to head back toward 7000 before the year end, excluding oct/nov time, which are always bad stock investment months, any P2P platform risk is by and large down to the professionalism of the people running it, ie good companies that provide accurate valuations, low as possible LTV% and always a first charge (personally i do not like 2nd charges), Only time will tell, but i do not see the stock market going pop any time soon. I'm sort of making the point that platform risk is not down to stock market volatility. (edit) over the last 12 months the stock market has lost over 10%, whereas property prices have increased 6.4% and predicted to rise over 7% in 2016 (depending on where you look) You make some very valid points. The problem is the UK's stock market psychologically (and systematically) follows the USA's. There are times when the FTSE & S&P mirror each other even when it makes no logical sense. With what's going on economically, the S&P can't continue as is (Shiller PE's are 26). When the US market pops, you can be sure the FTSE will follow suit. Then confidence falls, people run for the exits and knock on effects are normal. www.google.com/finance?q=INDEXSP%3A.INX&ei=HegXV8ntJ9LzeO6ThZAEYou can see how the ups and downs of each indexes are mirrored. Valuations aren't always accurate and even if they are, those values aren't forced to be achieved during a fire sale. There haven't been too many property defaults that I know of and the one's that have occurred through AC, some of the values have been difficult to achieve. As far as risk, one of the biggest IMO is consumer confidence. If everyone heads for the exits, the platform may struggle to survive.
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