14-07-2018, 06:08 PM
Reached 5.8% for the first time in a long while
Five Year Income
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14-07-2018, 06:08 PM
Reached 5.8% for the first time in a long while
15-07-2018, 10:14 AM
(14-07-2018, 06:08 PM)serpico Wrote: Reached 5.8% for the first time in a long whileThe last time it reached these dizzy heights it was, I believe, due to a couple of large commercial loans being digested by the "market" (IMO the should be prosecuted under the Trades Description Act for their legal name, Retail Money Market Limited, and its trade name as is it patently neither especially given the changes to the rolling market product. As rates in the five year product have climbed since June 6th, especially at weekends when traditionally they have fallen, I think it is, for Ratesetter, an unintended consequence of the changes.
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18-07-2018, 10:23 AM
I think it hit 5.9% last night (certainly 5.8% again), only £1.5million on the whole market as I write, the last match on the 1 year market was 6.3% at 7.46 this morning.
EDIT 5.9% at 14.11, barely a million left on the market.
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08-08-2018, 02:38 PM
It is up to 5.8% again, roughly £100k been taken at that level in the last hour, might get to 5.9% or even 6.0% today at this pace.
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09-08-2018, 02:34 PM
Only £1300 left at 5.7% and less than £100k at 5.8%, yesterday it did reach 5.9% could do so again today?
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09-08-2018, 07:57 PM
10-08-2018, 08:37 AM
Are people really comfortable with lending to RS for 5 years? It seems too long for my appetite.
10-08-2018, 10:09 AM
1 user Likes dualinvestor's post - ozboy
10-08-2018, 10:52 AM
(10-08-2018, 08:37 AM)locutus Wrote: Are people really comfortable with lending to RS for 5 years? It seems too long for my appetite.Fair point but a couple of things. Unlike other platforms with a provision fund no investor on RS has lost any money, when a loan defaults it is met by the provision fund that is calculated on a wealth of their own empirical data, some ay lament the reduction in cover but as the man said who jumped off the roof of a 20 storey building passing the 10th floor "so far so good" Again unlike many platforms it has a professional, experienced and competent management team. Its backers have put in nearly £30million which is far more than most of the property and pawn sites As @Blackdog says about half of the capital repays after 2.5 years even if a loan goes to term, with early repayments I expect that stage is reached within 2 years. It is far from perfect but IMO is a better risk than most of the property platforms allegedly offering much higher rates and, some of whom, refuse to recognise patently bad debts.
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10-08-2018, 10:58 AM
(10-08-2018, 10:41 AM)timmy Wrote: @BlackdogIt varies depending on the current level of interest vs. the rate on the loan, there is a page on the website somewhere explaining the calculation but it is broadly outlined in the terms and conditions clause 6. I have seen complaints about it being, in practise, quite high (more than 2-3%) but I have never done it myself
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10-08-2018, 11:52 AM
RateSetter used to be my largest platform, but now I can't see why I should invest in unsecured loans at usually less than 6% for 5 years, when I can get better rates at AC over shorter terms on secured loans with automated buying and selling tools with no fees and the option to sell at a discount should the need arise.
1 user Likes TalkToMe's post - ozboy
10-08-2018, 12:08 PM
(10-08-2018, 11:52 AM)linexpedition Wrote: RateSetter used to be my largest platform, but now I can't see why I should invest in unsecured loans at usually less than 6% for 5 years, when I can get better rates at AC over shorter terms on secured loans with automated buying and selling tools with no fees and the option to sell at a discount should the need arise.Until a loan is suspended. Then you get no interest, no sales and no PF. Don't think they are really comparable
10-08-2018, 12:44 PM
(10-08-2018, 12:08 PM)talktome Wrote: Until a loan is suspended. Then you get no interest, no sales and no PF. Don't think they are really comparableAgreed, only comparable insofar as I can choose to put my money in either. Neither RS nor AC are truly hands-off (like UB, GS, LW for example) and I found myself spending more and more time vying to get 5.8% or 5.9% or more and avoiding the sudden drops in rates that it simply didn't seem worth the effort. If a few loans fail on RS I get paid out by the PF, if a few loans fail on AC I still have the security and still get a better return overall. If many loans fail on RS there will be a resolution event and rates will plummet, if many loans fail on AC I still have the security and in many cases retained interest.
10-08-2018, 01:05 PM
(10-08-2018, 11:52 AM)linexpedition Wrote: RateSetter used to be my largest platform, but now I can't see why I should invest in unsecured loans at usually less than 6% for 5 years, when I can get better rates at AC over shorter terms on secured loans with automated buying and selling tools with no fees and the option to sell at a discount should the need arise.To be honest I have never considered AC, their offerings seem far removed from the true concept of P2P with their multitude of accounts with different acronyms and periods and I have seen reported literally thousands of movements on accounts amounting to less than a penny each month. It may be naive to say RS is a much simpler product, especially when one side of its "market" is (borrower "offers") is no such thing, and longer term loans are financed by short term money, but in the five year lending arena, as far as I am aware, you are lending to a specific borrower for a specific period of time, which is after all what a P2P platform is supposed to facilitate. As for the lending being unsecured it mostly is but with proper credit screening it is to a cohort whose loan performance as a whole is fairly predictable unlike say a property bridging loan where on more than one occasion you have been faced with ex-bankrupts, persons subject to parliamentary enquiries as to their financial dealings and similar traits, but as the platform concerned said "its not the debtor its the security" notwithstanding that the loans concerned are more than two years overdue with still no end in sight. EDIT back to the subject of the thread, the market is now matching at 6.0% as @Serpico said earlier could be an interesting weekend!
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10-08-2018, 01:25 PM
(10-08-2018, 12:44 PM)linexpedition Wrote: <snip>Now called a "Stabilisation Period". Sounds much more civilised. https://www.ratesetter.com/investor-terms
10-08-2018, 01:49 PM
10-08-2018, 03:04 PM
(10-08-2018, 01:25 PM)timmy Wrote: Now called a "Stabilisation Period". Sounds much more civilised.So it is, nevertheless enforced "Interest reduction" and "Capital reduction" by any other name would smell as smelly.
10-08-2018, 03:39 PM
(10-08-2018, 01:05 PM)dualinvestor Wrote: To be honest I have never considered AC, their offerings seem far removed from the true concept of P2P with their multitude of accounts with different acronyms and periods and I have seen reported literally thousands of movements on accounts amounting to less than a penny each month.True, unless/until there is stabilization event. At which point your loan, which may be performing perfectly, will be used to prop up everyone else ... so it isnt really any more 'P2P' than a pooled account is
10-08-2018, 04:45 PM
Agreed if such a event happens.
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19-08-2018, 10:25 PM
6.1% reached and almost all fulfilled. 6.2% about to be breached .
21-08-2018, 06:47 PM
Getting towards 6.1%, maybe just into 6.2% later and it's only Tuesday. I think I'll get a wedge ready for 6.5% and get to the front of that particular Q (for Thursday?).
21-08-2018, 07:02 PM
(21-08-2018, 06:47 PM)oldgrumpy Wrote: Getting towards 6.1%, maybe just into 6.2% later and it's only Tuesday. I think I'll get a wedge ready for 6.5% and get to the front of that particular Q (for Thursday?).6.0 exhausted, 6.1 at front of queue, not sure if has been taken at all yet.
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22-08-2018, 11:25 AM
22-08-2018, 12:28 PM
(22-08-2018, 11:25 AM)megabunch Wrote: Very nice.During the night (probably evening) all of 6.1% was taken and some at the front of 6.2%, but if you are tempted I am inclined to follow @oldgrumpy's strategy of waiting for probably better rates at the weekend, being a bank holiday. Yesterday there was less than £400,000 on the whole 5 year market things could get very tight.
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22-08-2018, 09:04 PM
Just remember that if you do get matched at some silly high rate, there is an excellent chance it will get repaid rather before the 5 years is up. A lot of my high rate loans came back much too quickly for my liking.
23-08-2018, 05:19 AM
(22-08-2018, 09:04 PM)suem Wrote: Just remember that if you do get matched at some silly high rate, there is an excellent chance it will get repaid rather before the 5 years is up. A lot of my high rate loans came back much too quickly for my liking.Agreed that is the pattern that occurs quite often but I have been, pleasantly, surprised over the last few weeks that only one has done so, out of about 20 in the range 5.7-6.1% Whilst writing I did note it briefly hit 6.2% last evening but then someone dumped an offer of c.£100,000 at 5.9%.
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23-08-2018, 09:29 AM
Fell short of my marker in 6.2% by £3.8K
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