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Post by rookyone on Nov 2, 2018 14:35:04 GMT
For the first time on FC my monthly check shows I'm worse of this month than I was last. Enough loses hit my account to completely wipe out my monthly interest.
I'm kind of use to the ups and downs of P2P investment, with around 15% of my portfolio in administration with the Collateral farce, and too many loans on Lendy overdue and impossible to get out of....
Maybe I'm getting a little twitchy with P2P investments, but if this months results are repeated next month it may well see me bailing out of FC and a few other platforms where possible... There is being nervous but optimistic and there is being stupid to hang on, not sure where I am at the moment...
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benaj
Member of DD Central
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Post by benaj on Nov 2, 2018 14:40:34 GMT
It does happen sometimes.
What really matters its the annualised rate (after bad debt and fees). If it is below 6%, then it's about time to consider alternatives. Plenty of 6%+ investment on the other platforms at the moment.
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trevor
Member of DD Central
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Post by trevor on Nov 2, 2018 15:31:53 GMT
I have had losses for the last 2 months on my classic account. I am running it down by withdrawing repaid capital and interest to transfer into Isa's. Not FC. I prefer RS (6%+) and AC (8%+ via MLA). I have an FC ISA but am getting twitchy because of too may failing after just a few payments.
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Stonk
Stonking
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Post by Stonk on Nov 3, 2018 21:36:46 GMT
For the first time on FC my monthly check shows I'm worse of this month than I was last. Enough loses hit my account to completely wipe out my monthly interest. I'm kind of use to the ups and downs of P2P investment, with around 15% of my portfolio in administration with the Collateral farce, and too many loans on Lendy overdue and impossible to get out of.... Maybe I'm getting a little twitchy with P2P investments, but if this months results are repeated next month it may well see me bailing out of FC and a few other platforms where possible... There is being nervous but optimistic and there is being stupid to hang on, not sure where I am at the moment... Get used to it! I've suffered a monthly loss on FC for 6 months out of the last 12. One month the defaults were 3 times larger than the interest.
Overall, I'm up about 0.4% on a year ago.
Do you happen to be 9 to 18 months into the life of a lot of your loans? That's the peak time for defaults. I am, so rather than selling I have held on in the hope that much of the stuff that would default has now done so, and what remains will outperform.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 705
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Post by coogaruk on Nov 4, 2018 12:01:52 GMT
Get used to it! I've suffered a monthly loss on FC for 6 months out of the last 12. One month the defaults were 3 times larger than the interest.
Overall, I'm up about 0.4% on a year ago. Ditto. I'm now up about 0.5% since the date the changes came into effect (at which point I stopped all new lending) and 1.5% *down* since the 1st Anniversary date (18th Sep. this year)
And to think FC had the audacity to send me an email for feedback on reasons why I've been withdrawing funds.
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Post by GSV3MIaC on Nov 4, 2018 14:20:41 GMT
Hey, it could have been a lot worse .. you could have bought the shares ..
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Post by steamer on Nov 8, 2018 9:27:38 GMT
I have 602 loans down from 695 in April as i stopped lending towards the end of 2017.
This financial year I have made significant losses and it was 4 months before I moved into a profit, albeit of a fraction of a percent. After 7 months I am now showing a 2.9% profit. In the last 10 days alone £107 have been lost. I will be astonished if I make 6% this financial year. I expect it to be about 3% - well that is why I stopped lending and been shifting my money elsewhere.
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benaj
Member of DD Central
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Post by benaj on Nov 8, 2018 9:42:43 GMT
I have set up new accounts after Sep 17. The returns of these accounts are better than my old ones (pre sep 17) because I was bad at picking loans. The new ones on average achieve 7.5% return after 10 months. My old one (pre sep 17) current annualised rate is 5.1% due to my mistakes.
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adrian77
Member of DD Central
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Post by adrian77 on Nov 8, 2018 10:10:45 GMT
A lot of us have done this - do I regret doing this - answers on a digital postcard...
Goodness know what will happen when the UK faces her next recession!
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dorset
Member of DD Central
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Post by dorset on Nov 8, 2018 14:23:48 GMT
Five defaults so far in November and 89 since January. All loans pre September 2017. Only just in profit for 2018.
Running out all my loans and now down to less than 50% of my 9/2017 peak loan book.
My guess is I will be with FC until at least 2023 as recoveries trickle in which to be fair they continue to do. Still believe that there is an undisclosed hole in the FC loan book which at some point will emerge. Would certainly short the shares if I could be bothered.
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Post by steamer on Nov 23, 2018 10:44:33 GMT
The writing was on the wall in mid 2016. I stopped adding to my investment and regrettably after a pause started to reinvest my available funds till the latter part of 2017. I have not sold off any loans but am letting them run down as I withdraw my available funds.
This year from about 600 loans (611 at the start and now 593)
714 pounds total Interest
672 pounds Bad debts (265 of it in November and its only the 23rd of the month!)
108 pounds Recoveries It was 4 months before I was in profit this year.
In previous years I have made always made more than 5%. This year I will very be surprised if it makes 2%
The same applys to my other PtoP account which I am also getting out of
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r00lish67
Member of DD Central
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Post by r00lish67 on Nov 23, 2018 15:57:44 GMT
I really don't like FC and Zopa's models. If there's no active choices to be made and diversification is king, why not just pay everyone the same rate? The smoke and mirrors with their stats means you never really know how they're doing, and if you complain about poor return then they'll just say that either a) you're unlucky b) you're in the 'bad part' of the cycle or c) recoveries will kick in.
They've essentially plucked a target return that sounds good, and then swiftly transferred all the risks around actually achieving it to us. Whilst you can tell it's not really working out, there's always one person on places like this forum who will say "what do you mean? It's tremendous!" because they've either been genuinely lucky or are falling for the further smoke and further mirrors in the way FC present investor returns.
Whilst I accept the ultimate risks are similar, I still prefer RS + LW. They are heavily incentivised to deliver the advertised rate every time. If they can't, their business will be massively impacted. If they do fail, you'll still receive your fair share of any losses that result i.e at least you know where you are.
I do acknowledge though that FC are now one of the most experienced SME lenders and have been rightly commended for their recoveries recently.
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