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Peer to Peer - experiences and risk?

Any other investment discussions eg. peer to peer lending
dspp
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Re: Peer to Peer - experiences and risk?

#212873

Postby dspp » April 5th, 2019, 9:33 am

I note from Mr C at viewtopic.php?f=33&p=212843#p212843

Funding Circle SME (FCIF) EGM to approve wind up and return capital. "Funding Circle has reaffirmed its willingness to support the Board so as to effect the best outcome for the Company's shareholders."

- dspp

mbdmbd
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Re: Peer to Peer - experiences and risk?

#213430

Postby mbdmbd » April 7th, 2019, 8:14 pm

I have recently been using Funding Circle P2P. I note that they are now quoting 30 days average time to liquidate your investment and 3 days to return funds once liquidated from loans.

They state that this period is due to there being a 30 day long queue of people selling loans. (Funding Circle don't phrase it quite that way)

I am in the process of extracting myself from there, especially in the light of recent articles in the financial press about the Funding Circle fund which is closely involved with funding circle (as a derivative?) - although I haven't investigated which owns which... if at all.

mbdmbd: 7th April 2019

uspaul666
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Re: Peer to Peer - experiences and risk?

#213440

Postby uspaul666 » April 7th, 2019, 9:03 pm

Be aware that FC silently removes loan principal from your totals when a loan enters formal recovery without any visible transaction. You have to go to “My Portfolio”/“Recent loan comments” and add up the exposure amounts manually. It’s difficult to tell which loans are still being recovered and which are utterly dead. This means that years later, recovery payments from loans you didn’t know you had may appear in your cash account which can affect your final return. It also means it’s impossible to calculate your unrealised return programmatically. It can be surprising how much recoveries add to p2p returns generally.

It’s been suggested elsewhere that the winding down of FCIF is either because of the poor returns from FC or because FC has huge institutional lenders now so doesn’t need to cash from the IT (or perhaps retail lenders anyway). It’s also been suggested that since FCIF is at a discount to NAV and it’s going to be run down (presumably *to* NAV) it’s an excellent buy but that’s a game that I would never play!

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Re: Peer to Peer - experiences and risk?

#213444

Postby JohnB » April 7th, 2019, 9:35 pm

I decided to withdraw from p2p 5 months ago. Getting out of FC was quick (bar the muddle of loans in recovery mentioned above), but much slower from other providers. I've only managed to get 50% out so far, and I suspect it will be years for the rest, and I expect substantial capital losses.

Clitheroekid
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Re: Peer to Peer - experiences and risk?

#213460

Postby Clitheroekid » April 7th, 2019, 11:09 pm

If any of you have got money ‘invested’ with Lendy it would seem prudent to get it out ASAP - assuming that you can!

https://www.telegraph.co.uk/investing/n ... -fund/amp/

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Re: Peer to Peer - experiences and risk?

#213471

Postby JohnB » April 7th, 2019, 11:37 pm

No-one has been able to get money out of Lendy this calendar year, other than interest payments, and a handful of loan repayments. Nearly all loans are overdue and not tradeable, or have a near infinite time to sale on the secondary market.

argoal
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Re: Peer to Peer - experiences and risk?

#213632

Postby argoal » April 8th, 2019, 2:30 pm

I have been withdrawing money as loans mature from Zopa since the start of the year.

The trend in bad debts there hasn’t reversed for me since I reported it at the end of last year.

It will take 3 years to have the bulk of my cash returned but I’m reasonably satisfied that I will be able to passively cash out like that without any real drama.

toofast2live
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Re: Peer to Peer - experiences and risk?

#213809

Postby toofast2live » April 9th, 2019, 9:42 am

dspp wrote:I note from Mr C at viewtopic.php?f=33&p=212843#p212843

Funding Circle SME (FCIF) EGM to approve wind up and return capital. "Funding Circle has reaffirmed its willingness to support the Board so as to effect the best outcome for the Company's shareholders."

- dspp


I assume this will make the sell out queue longer as all these loans come on to the market. And what about the “unsellable” loans? Do these become “sellable” now they are from the IT? Or do they have so many institutions queueing up with buckets of cash that it doesn’t matter. Hold on, though. If there are so many institutions with so much cash why is the queue for us mortals so darned long?

It has a nasty whiff swirling around in the foggy details.

dspp
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Re: Peer to Peer - experiences and risk?

#213839

Postby dspp » April 9th, 2019, 11:18 am

toofast2live wrote:
dspp wrote:I note from Mr C at viewtopic.php?f=33&p=212843#p212843

Funding Circle SME (FCIF) EGM to approve wind up and return capital. "Funding Circle has reaffirmed its willingness to support the Board so as to effect the best outcome for the Company's shareholders."

- dspp


I assume this will make the sell out queue longer as all these loans come on to the market. And what about the “unsellable” loans? Do these become “sellable” now they are from the IT? Or do they have so many institutions queueing up with buckets of cash that it doesn’t matter. Hold on, though. If there are so many institutions with so much cash why is the queue for us mortals so darned long?

It has a nasty whiff swirling around in the foggy details.


I don't know, but I too sense a bad smell.

I had a nasty suspicion this whole sector would go badly wrong from the very beginning, mainly because of the character of someone I knew who was heavily promoting the sector as an investment opportunity (i.e. not just as a lender, but also involved in setting up some of the vehicles). Hence I decided to stay well clear. From time to time I came across oddities that jarred that reinforced that view, such as my post #54362 of 16-May-2017 (viewtopic.php?p=54362#p54362). I will be surprised if the whole sector works off its loans book cleanly. More likely there will be some very unpleasant outcomes.

regards, dspp


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