bg
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Post by bg on Nov 12, 2019 10:55:22 GMT
AC do have security on all their loans, which makes me feel more comfortable. They also have the 'discretionary fund'to cover defaults (although it's debatable how useful that would actually be in practice). Security is only as good as the LTV valuation which has been appalling at times with AC. You clearly have not been invested in Ipswich, Epping, Angelsey, the London Greek bloke etc etc. Most of the loans you refer to were made over 5 years ago just after AC launched. Much has been learnt and changed since then. Having said that did any of the AC loans default with 100% loss before the first monthly payment had been made as has happened on some of my FC loans?
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Post by shanghaiscouse on Nov 12, 2019 14:05:57 GMT
Except it isn't a P2P platform. Why do people still use this term? They are the intermediary, you as the lending P have no ability to control who borrows. If this is your definition then all banks can also be called P2Ps as they borrow money from one person and lend it to another. It's an intermediated lending platform.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Nov 12, 2019 15:05:58 GMT
Security is only as good as the LTV valuation which has been appalling at times with AC. You clearly have not been invested in Ipswich, Epping, Angelsey, the London Greek bloke etc etc. Most of the loans you refer to were made over 5 years ago just after AC launched. Much has been learnt and changed since then. Having said that did any of the AC loans default with 100% loss before the first monthly payment had been made as has happened on some of my FC loans? did Trabants rust, I'm sure I heard some panel were a form of compressed cardboard so may go soggy but not rust.
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dorset
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Post by dorset on Nov 12, 2019 17:33:56 GMT
The share price dropped because FC is basically worthless. The new tool is like adding new chrome bumpers to a Trabant (or Lada take your pick). What nonsense. Read the latest update. FC has certainly underperformed, but is on track to grow revenues at 20%. yes, they hyped the IPO, just like Uber, Lyft, wework etc. FC is certainly not worthless, and in fact the market values it currently at £350M. A little less opinion and a little more fact would be welcome. A rational market would value FC as the present value of the future stream of expected dividends. That is the dividend stream discounted by the investors cost of finance. The problem with a listed investment that has no dividend stream or any expectation of a future dividend stream is that in economic teams the share is worthless. The balance sheet asset value does not come into pay as i) it cannot be paid out as a dividend ii) it will never be paid back to the subscribers and iii) it will disappear due to cash burn. FC aiming to grow at 20% if profits are not generated as a result is simply vanity and has no economic value.
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ashtondav
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Post by ashtondav on Nov 12, 2019 18:22:12 GMT
Well, the rather well informed market of investors disagrees. Look at this logically. Of the 60 plus p2p platforms which will survive as (non merged) entities in 10 years time.
I would say FC, ZOPA, RS and AC for certain - the others are minnows swimming in a large sea. Some may make it, but many will die or be taken over. Many are just too damned "niche" to get any scale.
Remember - for 20 or so of its years as a public company Amazon did not make a profit of pay dividends. Worthless? Go look at the share price decline in 2000/2001 and its subsequent pattern.
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dorset
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Post by dorset on Nov 12, 2019 18:37:49 GMT
Ashtondav. Please re-read what I said about future expectations.
Investors in Amazon always had and still have expectations of future dividends. Amazon had and still has a viable business model – pray tell what is FCs?
Re the informed market investors – are these the same ones who piled in at 440p per share?
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sd2
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Post by sd2 on Nov 14, 2019 9:58:16 GMT
AC do have security on all their loans, which makes me feel more comfortable. They also have the 'discretionary fund'to cover defaults (although it's debatable how useful that would actually be in practice). They do business loans which often turn out to have nothing in the way of assets. As they have closed down their business account those loans will end up in the quick access account 30 day account etc. The discretionary fund SHOULD cover bad debt with ease during normal market conditions. Unlike funding circle. And no were not in recession. The country is Brexitited out!
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upperdeane
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Post by upperdeane on Nov 24, 2019 17:20:13 GMT
FC share price back under £1 per share after the recent excitement. it closed at 96p on Friday. I'm glad I don't own any shares and i'll be even happier when i finally manage to sell my loans (the ones that i can sell) and move on elsewhere and put this down to one of those bad but interesting learning experiences.
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Post by GSV3MIaC on Nov 24, 2019 20:39:16 GMT
Featured in Saturday Daily Wail money pages as one of the dogs of 2019, which won't help any.
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Post by davee39 on Nov 24, 2019 20:40:56 GMT
There may not be ANY P2P platforms around in 10 years.
At some point there will be a recession and the platforms will suffer excessive defaults/cash burn and will find it impossible to raise new investment.
I have pulled out of FC and will have exited Zopa and RS by the end of next year.
Assetz is all in the QA account and is coming out as needed.
I will settle for 1.75% over 2 years with capital protected.
FC IS worthless. It might never make a profit & it will run out of cash. Zopa and RS are high risk for a 4% return (The RS provision fund is very weak going into a recession) while, as reported, Assetz have made some very bad loans and left investors locked in to accounts with a provision fund that cannot afford to pay anything out.
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dorset
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Post by dorset on Nov 25, 2019 10:01:04 GMT
Very damning piece by Kate Palmer in yesterdays Sunday Times Money section.
She claims to have had money with FC since 2015 and highlights all of the problems - defaults, zero returns, lack of access etc - endlessly paraded on these posts.
Going to frighten off any new lenders. So what impact will that have me thinks?
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Post by shanghaiscouse on Nov 25, 2019 11:30:08 GMT
Not much because FC have also decided that individual retail lenders are too much trouble and are running them down...... they have already said that in the future they will be focused on institutional investors. Turns out that lending on 5 year terms but being funded by retail investors who want to pull money out instantly whenever they fancy doesn't work.
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bigfoot12
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Post by bigfoot12 on Nov 25, 2019 11:43:30 GMT
Not much because FC have also decided that individual retail lenders are too much trouble and are running them down...... they have already said that in the future they will be focused on institutional investors. Turns out that lending on 5 year terms but being funded by retail investors who want to pull money out instantly whenever they fancy doesn't work. Interesting choice when their own institution doesn't want to invest through them. (Nor VSL, P2PGI,....)
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Stonk
Stonking
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Post by Stonk on Nov 25, 2019 21:30:22 GMT
Very damning piece by Kate Palmer in yesterdays Sunday Times Money section. She claims to have had money with FC since 2015 and highlights all of the problems - defaults, zero returns, lack of access etc - endlessly paraded on these posts.
That's Kate Palmer, the "Senior Money Reporter" of the Times, writing a national newswpaper article headlined "I thought peer-to-peer was as safe as savings".
That will be worth remembering when you read her opinions in future.
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Post by rocko2000 on Nov 28, 2019 11:58:57 GMT
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