beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Oct 23, 2020 17:01:06 GMT
well well well the 1 year takes the lead. 0 lending and it moved 3 months in 2 weeks it will be back to its old self soon. Don't be surprised if it goes the same way as the 5 year. I did a test RYI for 1 year and was given 162 in place. but cancelled after
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coogaruk
Hello everyone! Anyone remember me?
Posts: 705
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Post by coogaruk on Oct 23, 2020 18:20:26 GMT
I expect a lot of cash has moved from 5yr to 1yr since RS made their ill-fated announcement on 14th September. Just goes to show where Ratesetters priorities lie. Just to clarify, I meant Lenders' cash being diverted (reinvested) there but yes the 1yr is obviously where RS prioritiy now lies. It has to be that way of course.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 705
Likes: 464
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Post by coogaruk on Oct 23, 2020 18:27:32 GMT
When the world gets back to normal (post-vaccine), I wonder what lessons will be learnt by those managing P2P platforms? Following the 2008 financial crash the high street banks were forced to adopt new regulations to ensure they wouldn't go bust in the event of another financial crisis. Perhaps similar regulations should be brought in for fintechs too? As for RS, I hope their founders manage to escape from their new Metro bosses and start up a new P2P platform in a few years time. RS was always my favourite platform until March of this year, and they will leave a big hole in the P2P market. I hope we haven't seen the end of the platforms with provision funds as this was what attracted me to P2P in the first place. On a different note, I'm slightly surprised Metro haven't used this takeover as an opportunity to cross-sell their savings products to RS lenders. A new Ratesetter branded product range, FSCS protected, to compete with those being offered by Zopa perhaps? As I've said before, the writing was on the wall for p2p long before Covid came along. True p2p as it originally set out to be hasn't existed for quite some time now and it won't be making a comeback anytime soon, if ever.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Oct 23, 2020 20:23:51 GMT
When the world gets back to normal (post-vaccine), I wonder what lessons will be learnt by those managing P2P platforms? Following the 2008 financial crash the high street banks were forced to adopt new regulations to ensure they wouldn't go bust in the event of another financial crisis. Perhaps similar regulations should be brought in for fintechs too? As for RS, I hope their founders manage to escape from their new Metro bosses and start up a new P2P platform in a few years time. RS was always my favourite platform until March of this year, and they will leave a big hole in the P2P market. I hope we haven't seen the end of the platforms with provision funds as this was what attracted me to P2P in the first place. On a different note, I'm slightly surprised Metro haven't used this takeover as an opportunity to cross-sell their savings products to RS lenders. A new Ratesetter branded product range, FSCS protected, to compete with those being offered by Zopa perhaps? As I've said before, the writing was on the wall for p2p long before Covid came along. True p2p as it originally set out to be hasn't existed for quite some time now and it won't be making a comeback anytime soon, if ever. I think it will have a place on a smaller scale. some European p2p platforms are doing well
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Post by diversifier on Oct 23, 2020 21:48:02 GMT
True, but completely misses the point. Ratesetter had an alternative option in March, which they explicitly chose not to take. Ratesetter have £50m per month cash flow from repaying loans, which they chose to force-continue, splitting (allegedly) 50/50 between RYI Claims and new loans. If they had just *stopped issuing new loans* on the 10th March, on the day they knew they had a problem, this would have returned £350m to investors in the last 7 months, not £110m. That’s mathematically derivable from their published Performance Data, and is simply a fact. It’s not up for debate. The more astute will note that £110m is *not 50%* of £350m, but let’s put that to one side. £350m would have been more than sufficient to cover the RYI claims. Now, whether you think that would have been a good policy or not, is a completely separate matter. I believe that action would have recovered their business to Zero RYI liquidity issue and a fully functioning ongoing business, already by July. Possibly even by May/June, as the total RYI would have been smaller. No need for rescue by Metro at all. They would however have had to accept on 10th March that their business was going to be at least 20% smaller than they thought it was just a week before. They went all emotional and failed to accept that truth, which their data laid in front of them in precise detail, and as a consequence they lost 95-98% of the value of their company six months later. Bad for us, bad for them. As I say, you don’t have to accept my view that the alternative option in March was acceptable in the circumstances, and would have led to better outcome. But to pretend that there was *no* other option at all, and they were just buoyed along in an uncontrollable tsunami of misfortune, is just factually incorrect. I agree that RS should not have continued to issue new loans but I think I remember reading somewhere that in doing so would have spelt game over for them so they had to try to keep the status quo by continued albeit at a reduced rate. “Game Over” arrived for them anyway. They sold their business for between 2% and 5% of what it was worth in March, depending on how the incentives work out. Difficult to believe it could have turned out any worse for them.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Oct 23, 2020 22:25:07 GMT
I agree that RS should not have continued to issue new loans but I think I remember reading somewhere that in doing so would have spelt game over for them so they had to try to keep the status quo by continued albeit at a reduced rate. “Game Over” arrived for them anyway. They sold their business for between 2% and 5% of what it was worth in March, depending on how the incentives work out. Difficult to believe it could have turned out any worse for them. well it seems they are all employed still. so i reckon a number are very pleased
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Post by p2plender on Oct 23, 2020 22:45:36 GMT
Look at how access is clogged..
They couldn't turn a profit lending 5yr money at access rates!
Doomed, it always was.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Oct 24, 2020 15:39:29 GMT
well it seems they are all employed still. so i reckon a number are very pleased Speculating again? They lost the big bonus that they were expecting from a flotation. yes Jennifer speculating exactly. The use of 'it seems' and 'I reckon' would suggest just that. Do you honestly think all staff are linked to a bonus or a few. Most staff are probably on normal wages with normal set ups, so yes, I speculate with the word (it seems and reckon) they are employed and happy to be so. Do you get a reply when you contact them? I do. I would speculate that you enjoy latching onto my comments are digging at them ha
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Post by RateSetter on Oct 26, 2020 17:28:27 GMT
Good afternoon all. Today we have delivered £1.2m and the full update is below:
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Oct 26, 2020 18:02:42 GMT
Good afternoon all. Today we have delivered £1.2m and the full update is below: Releases are certainly picking up speed, blended with organic funds out (high rates) the 1 and 5 year appear to be moving to a semi-liquid status. I wonder if we will see the 15th of March sooner than we thought for A/P/M, maybe even in November. As 1 year to jumping so fast there really can not be much money to make huge progress. 5 year I consider will be the same as no loans are written there.
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
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Post by johnt on Oct 27, 2020 9:13:19 GMT
Good afternoon all. Today we have delivered £1.2m and the full update is below: Releases are certainly picking up speed, blended with organic funds out (high rates) the 1 and 5 year appear to be moving to a semi-liquid status. I wonder if we will see the 15th of March sooner than we thought for A/P/M, maybe even in November. As 1 year to jumping so fast there really can not be much money to make huge progress. 5 year I consider will be the same as no loans are written there. RS should be up to 15 March on around 15 November, based on 10 RYI's a day.
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Post by freefalljunkie on Oct 27, 2020 10:11:58 GMT
Releases are certainly picking up speed, blended with organic funds out (high rates) the 1 and 5 year appear to be moving to a semi-liquid status. I wonder if we will see the 15th of March sooner than we thought for A/P/M, maybe even in November. As 1 year to jumping so fast there really can not be much money to make huge progress. 5 year I consider will be the same as no loans are written there. RS should be up to 15 March on around 15 November, based on 10 RYI's a day. I have moved 120 places in the last 4 working days, so it would seem more like 30ish a day. Over the summer I had resigned myself to having to wait for the loans to run to term, but if that rate continues I am hoping my RYI from midday on 16th March may be done by Christmas. Pretty big IF though!
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
Likes: 71
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Post by johnt on Oct 27, 2020 10:25:52 GMT
RS should be up to 15 March on around 15 November, based on 10 RYI's a day. I have moved 120 places in the last 4 working days, so it would seem more like 30ish a day. Over the summer I had resigned myself to having to wait for the loans to run to term, but if that rate continues I am hoping my RYI from midday on 16th March may be done by Christmas. Pretty big IF though! If you look historically, the releases are pretty sporadic. I use weekly averages to estimate. Week 11 we had a weekly daily movement of 15.7 but this dropped to 3.1 the following week for example. The average over the last 4 weeks is 10.1 and the average to date is 6.5 releases per day.
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Post by freefalljunkie on Oct 27, 2020 10:49:52 GMT
Ahh, thanks. I will temper my optimism then!
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Post by freefalljunkie on Oct 27, 2020 10:57:36 GMT
Just a thought, is there reason to think the RYI rate will go up as no new consumer loans are being written since the Metrobank takeover? Or at least if they are being written it will be from Metrobank funds rather than existing RS lenders?
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