jonno
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nil satis nisi optimum
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Post by jonno on Jan 31, 2018 12:14:32 GMT
It's herd mentality. All it takes is a few people to decide to sell their loan parts and as soon as others see some availability in a particular loan they panic and think there must be a reason , that those people must have inside information and then they list their loan parts and before you know it you have a huge queue and there is no reason for it. I would add that this is a serious problem caused when interest is still payable on loan parts placed for sale. There is no disincentive not to stick your loan parts at the end of a long queue just to get a sales slot because you are still receiving your interest. To get a sales slot because you are still receiving your interest . In so doing you make the problem worse because then more investors panic and add their loan parts behind yours. I sold out of this loan and all my MT loans apart from the defaults earlier this month and at that time I was able to sell this loan in a matter of minutes. I don't really understand what has changed with regard to it in the last two weeks such that it is now a secondary market pile up loan. Wow GeorgeT . Congrats to you on your award of "The Philosopher of P2P". I didn't realise the annual Indy P2P awards had been given out (and in fact I didn't realise that was even a category). Well done you!!
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jonah
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Post by jonah on Jan 31, 2018 20:28:55 GMT
Wow GeorgeT . Congrats to you on your award of "The Philosopher of P2P". I didn't realise the annual Indy P2P awards had been given out (and in fact I didn't realise that was even a category). Well done you!! Wait... what.... I miss something?
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sarahcount
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Post by sarahcount on Jan 31, 2018 22:15:06 GMT
Wow GeorgeT . Congrats to you on your award of "The Philosopher of P2P". I didn't realise the annual Indy P2P awards had been given out (and in fact I didn't realise that was even a category). Well done you!! Wait... what.... I miss something? Self proclaimed I do believe.
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toast
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Post by toast on Feb 1, 2018 12:44:51 GMT
I'm coming round to the idea of variable pricing in the secondary market. Me too and I've been firmly in the "single price" camp until now. With the ending of rollovers providing an exit route I think this is more important still. Whilst variable pricing is "one more thing" for new lenders to learn, it doesn't take too long to understand and get comfortable with it.
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andy1
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Post by andy1 on Feb 1, 2018 15:53:23 GMT
I'm coming round to the idea of variable pricing in the secondary market. Me too and I've been firmly in the "single price" camp until now. With the ending of rollovers providing an exit route I think this is more important still. Whilst variable pricing is "one more thing" for new lenders to learn, it doesn't take too long to understand and get comfortable with it. I've never understood why trades should have to be a par. Nothing else in the world comes with a price that can never, ever change under any circumstances and people generally cope with the concept.
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jlend
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Post by jlend on Feb 1, 2018 18:16:56 GMT
My thoughts for what it is worth.
I do wonder if MT should be telling the borrower now that they do not wish to renew the loan in May and that the borrower should begin seeking an alternative loan provider. This would give the borrower plenty of time.
Given the slow progreas this does not feel unreasonable and I've seen AC do this for example so it's not unheard of.
This might be an approach to use on some loans going forward if the risk is deemed to be increasing but borrowers would need to be given plenty of warning.
Of course some borrowers may struggle.
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hazellend
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Post by hazellend on Feb 1, 2018 19:52:01 GMT
My thoughts for what it is worth. I do wonder if MT should be telling the borrower now that they do not wish to renew the loan in May and that the borrower should begin seeking an alternative loan provider. This would give the borrower plenty of time. Given the slow progreas this does not feel unreasonable and I've seen AC do this for example so it's not unheard of. This might be an approach to use on some loans going forward if the risk is deemed to be increasing but borrowers would need to be given plenty of warning. Of course some borrowers may struggle. This borrower confidently stated they were not interested in moneything for development finance
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Post by GSV3MIaC on Feb 2, 2018 12:18:48 GMT
I suspect it is mutual, given the likely loan size required for a site like that! Right now nobody seems to want to fund the existing loan (looking at the SM state), never mind more development.
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hazellend
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Post by hazellend on Feb 3, 2018 10:13:49 GMT
I suspect it is mutual, given the likely loan size required for a site like that! Right now nobody seems to want to fund the existing loan (looking at the SM state), never mind more development. “Whilst MoneyThing has offered to fund the development, the borrower is able to source funding from a lower cost lender.”
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Post by GSV3MIaC on Feb 3, 2018 20:54:05 GMT
Yeah, but Moneything don't fund the lender .. we do .. and right now we appear to not want to.
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jlend
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Post by jlend on Feb 3, 2018 21:31:34 GMT
I suspect it is mutual, given the likely loan size required for a site like that! Right now nobody seems to want to fund the existing loan (looking at the SM state), never mind more development. “Whilst MoneyThing has offered to fund the development, the borrower is able to source funding from a lower cost lender.” I do wonder whether they can still source funds from a lower cost lender. I don't know either way. It would be worth MT validating this asap as we are 16 weeks away from the scheduled loan repayment so would expect negotiations to be well underway with one or more low cost lenders to give themselves plenty of time.
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stevio
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Post by stevio on Feb 3, 2018 23:14:00 GMT
Yeah, but Moneything don't fund the lender .. we do .. and right now we appear to not want to. That's one assumption from the current SM However we have seen a very jittery SM since a spat of defaults and it's difficult to draw meaningful conclusions You could say it's people exiting simply due to size and term approaching, with development funding almost ruled out, investors are using latest info and acting on Or simply following the crowd
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mary
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Post by mary on Feb 21, 2018 13:49:30 GMT
Update, now 56 units exchanged (+5) and 30 reserved (+7).
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Post by westcountry on Feb 26, 2018 9:15:55 GMT
MoneyThing, with 56 of the flats now having been sold, do the purchasers of the flats rank ahead of the investors in this loan, should it default, please? This wasn't (and still isn't) clear with the default of BPF808 & 809 Res Dev in B*********, so clarity with how it affects this Liverpool loan would be very much appreciated.
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elliotn
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Post by elliotn on Feb 26, 2018 9:28:41 GMT
MoneyThing, with 56 of the flats now having been sold, do the purchasers of the flats rank ahead of the investors in this loan, should it default, please? This wasn't (and still isn't) clear with the default of BPF808 & 809 Res Dev in B*********, so clarity with how it affects this Liverpool loan would be very much appreciated. UN1s registered after our 1C will rank behind us.
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