FatCat

Registration Date: 21-04-2018 Date of Birth: Not Specified Local Time: 31-05-2020 at 07:58 AM Status: Offline

FatCat's Forum Info Joined: 21-04-2018 Last Visit: 11-05-2020, 10:55 AM Total Posts: 124 (0.16 posts per day | 0.91 percent of total posts) (Find All Posts) Total Threads: 31 (0.04 threads per day | 3.49 percent of total threads) (Find All Threads) Time Spent Online: 5 Days, 2 Hours, 56 Minutes Members Referred: 0 Total Likes Received: 115 (0.15 per day | 1.28 percent of total 8999) (Find All Threads Liked For — Find All Posts Liked For) Total Likes Given: 112 (0.15 per day | 1.24 percent of total 9002) (Find All Liked Threads — Find All Liked Posts) Additional Info About FatCat Platforms: Assetz Capital Collateral Funding Secure Funding Circle Ratesetter Please select the group that best describes you: P2P Investor & Observers Location: Mexico Sex: Undisclosed FatCat' awards. This user has no awards at this time. FatCat's Most Liked Post Post Subject Numbers of Likes Statistics review 8 Thread Subject Forum Name Statistics review Discussion (Ratesetter) Post Message RS stats to date 01/05/2019 Key points: Peculiar month in that loans under management remained static at £854m (previously grew by £11m in a single month) PF actual cash in hand shrank slightly from £13.2m to £13.0 (from 1.54% to 1.52% of loans under management. Future inflows up £0.2m. Despite this, their Interest Coverage Ratio has gone up from 112% to 115%. The key driver for this is not better current performance (see PF cash), it is that they have again reduced their expected future losses, this time from £34.5m to just £33.6m.   Analysis: Firstly re: the loans under management remaining unusually static, I assume this is just because of Easter reducing borrower demand and perhaps a few more repayments/defaults. Second, this is another month which highlights the danger of perceiving the headline ICR as too relevant. Despite PF cash continuing its downward trend, the ICR shows a healthy increase because of an opaque change they have made to expected future losses.  I am now starting to think of the PF in pseudo-accountancy terms i.e.  The balance sheet net assets are £13.0m (PF actual cash), the forecast future revenue is £25.7m (Expected inflows) and the forecast future costs are £33.6m (expected future losses). So as it stands, what you effectively have is a loss making enterprise of £25.7m-£33.6m =  -£7.9m. As a result, barring intervention by RS, I expect to see the PF cash figure to continue to deteriorate month-on-month. Something has to change in this respect, as otherwise these projections imply PF cash is heading slowly towards being just £5.1m  (£13m-7.9m) or just 0.5% of loans under management. The lack of any external audit on expected future losses remains a concern. As it stands it remains impossible to assess whether RS are being overly bullish with their numbers. Their much smaller rival LendingWorks appears to have reduced their expected losses significantly despite increasing their borrower APR, which makes me rather suspicious about RS too. But, again, currently impossible to verify. On my Fatcat invest-o-meter, I'm personally continuing to run down my investments and will not invest further cash until the situation improves. edit (26/06): for the sake of transparency i did actually increase my investment very recently, but only because rolling went up to 9%+.