24-03-2019, 10:21 AM
Aside from the gopping colour scheme amendment, also a few changes to reporting.
I note that they appear to have quietly shelved their previously explicitly stated PF target of 125% to 150% that was on the stats page, but now doesn't feature in their new one . Not sure if that target still lurks elsewhere though.
Re: removing the loanbook and changing live stats, that's disappointing, although I'm not sure it changes a great deal, does it? Providing they're continuing to share PF data on a fairly regular basis, this is comparable to, say, LendingWorks.
I find their dashboard on PF usage rather odd, as if the neat slider (currently on 'performing as expected') sliding over a notch to 'investors may receive less interest than expected' would be a trivial matter. To me that's like having a little slider with 'Disaster' on the opposing side.
Who would want to keep their funds on RS in such a scenario? Who wouldn't withdraw from Rolling? If prevented from withdrawing from rolling, who would ever add more funds again?
Anyway, overall, I still like Ratesetter at the moment and within the now relatively small amounts I deploy in P2P it has one of the biggest allocations. I don't feel the Rolling rates are especially worth it though, the easy access part is a mirage anyway, you're still taking the same risk of their ongoing existence.
The things that do concern me are:
1) The impact of a high interest rate environment. When we eventually have cash interest rates at, say, 4-5%, what happens then? Will we get 10% from Ratesetter, would borrowers be able to afford that?
2) As per here , they appear to be moving away from consumer lending and towards commercial and property lending. 38% of their new lending is going in this direction as opposed to a long term 24% allocation. Concerns re: liquidity if that continues.
3) Their PF has taken a bit of a beating recently, even excluding the wholesale loans fiasco. However, the economic environment by all accounts is thoroughly benign. So, what happens in a recession if this is the best it gets?
It's not a cash savings account is it?
I note that they appear to have quietly shelved their previously explicitly stated PF target of 125% to 150% that was on the stats page, but now doesn't feature in their new one . Not sure if that target still lurks elsewhere though.
Re: removing the loanbook and changing live stats, that's disappointing, although I'm not sure it changes a great deal, does it? Providing they're continuing to share PF data on a fairly regular basis, this is comparable to, say, LendingWorks.
I find their dashboard on PF usage rather odd, as if the neat slider (currently on 'performing as expected') sliding over a notch to 'investors may receive less interest than expected' would be a trivial matter. To me that's like having a little slider with 'Disaster' on the opposing side.
Who would want to keep their funds on RS in such a scenario? Who wouldn't withdraw from Rolling? If prevented from withdrawing from rolling, who would ever add more funds again?
Anyway, overall, I still like Ratesetter at the moment and within the now relatively small amounts I deploy in P2P it has one of the biggest allocations. I don't feel the Rolling rates are especially worth it though, the easy access part is a mirage anyway, you're still taking the same risk of their ongoing existence.
The things that do concern me are:
1) The impact of a high interest rate environment. When we eventually have cash interest rates at, say, 4-5%, what happens then? Will we get 10% from Ratesetter, would borrowers be able to afford that?
2) As per here , they appear to be moving away from consumer lending and towards commercial and property lending. 38% of their new lending is going in this direction as opposed to a long term 24% allocation. Concerns re: liquidity if that continues.
3) Their PF has taken a bit of a beating recently, even excluding the wholesale loans fiasco. However, the economic environment by all accounts is thoroughly benign. So, what happens in a recession if this is the best it gets?
It's not a cash savings account is it?
