What % do you put into P2P ?

JohnRo

Why peoplewould people want to put money on P2P instead in put it in I funds?

Presumably they'd do some of both, thereby diversifying across financial assets. P2P is not correlated with equity market gyrations and is attractive to those chasing higher risk returns.

I've decided I'm going to give Saving Stream a trial. I'm tempted to see how it fares and the only way is to play for real, the amount I'll use won't break the bank if it all ends in tears. That's assuming I can get a foothold in the pipeline loans when they eventually go live.

Does anyone know what that process involves? Does cash have to be sat dormant in the SS account or is the process one of being contacted to provide the funding for each loan part as it becomes available?

adindas

There is independent forum regarding Saving Stream here
http://p2pindependentforum.com/board/58/saving-stream

I also think 12% is risk worth taking.
But considering that VLS 80% Equity is currently providing about 10% return since the last 5 years. SI it worthy to take a more significant risk of the margin of just 2% ?

What I have been missing here ??

Sorry id my question does not make sense as I am start learning how to climb the rope.

JohnRo wrote: »

Presumably they'd do some of both, thereby diversifying across financial assets. P2P is not correlated with equity market gyrations and is attractive to those chasing higher risk returns.

I've decided I'm going to give Saving Stream a trial. I'm tempted to see how it fares and the only way is to play for real, the amount I'll use won't break the bank if it all ends in tears. That's assuming I can get a foothold in the pipeline loans when they eventually go live.

Does anyone know what that process involves? Does cash have to be sat dormant in the SS account or is the process one of being contacted to provide the funding for each loan part as it becomes available?

bigadaj

adindas wrote: »

There is independent forum regarding Saving Stream here
http://p2pindependentforum.com/board/58/saving-stream

I also think 12% is risk worth taking.
But considering that VLS 80% Equity is currently providing about 10% return since the last 5 years. SI it worthy to take a more significant risk of the margin of just 2% ?

What I have been missing here ??

Sorry id my question does not make sense as I am start learning how to claim the rope.

The return from vls is probably above what would be expected as the long term average, typical returns might be 7% long term but that's obviously open to debate.

There are a range of models within the p2p landscape, they were originally mainly unsecured lending with the likes of Zopa and rate setter. These morphed into providing a provision fund to reduce the risk somewhat. Now these platforms become better known the returns have dropped and I don't believe they are attractive.

I've currently got money in rate setter, just for the bonus, and Moneything. I have pre bid for a loan at Savingstream which hasn't gone live as yet and am looking at Ablrate as well. The three platforms I mention all deal in secured lending, provide high returns but are often of limited timescale and there is still risk, both absolutely to capital and more probably to delays in returning capital should teh borrowers default and the asset have to be sold.

Early days for me and I can't see myself committing to more than a few per cent of my inevitable wealth but it is interesting and a different asset class.

JohnRo

To answer my own question above, Saving Stream have just emailed me to give advance warning that two of the pipeline loans are expected to go live in a day or two and to ensure the account balance covers the pre-funding arrangement.

All very simple, straightforward and user friendly so far. The proof of the pudding will be in the eating.

Zola.

Can someone please give me a quick synopsis of how this works?

Say I lend £20

- how does the rate get determined?
- how long do you have to wait to get paid?
- do you get paid in segments, or in full?

adindas

For £20 I am not going to bother researching where to put it because I know the right place is in my wallet, lol,

Zola. wrote: »

Can someone please give me a quick synopsis of how this works?

Say I lend £20

- how does the rate get determined?
- how long do you have to wait to get paid?
- do you get paid in segments, or in full?

Zola.

£20 was an throw away example, forget the numbers, just interested to see what the attraction is for people with this.

chockydavid1983

I'm thinking of doing Rate Setter just for the bonus but nothing beyond that, doesn't seem worth the extra risk for the slight extra gain over funds.

bigadaj

Zola. wrote: »

Can someone please give me a quick synopsis of how this works?

Say I lend £20

- how does the rate get determined?
- how long do you have to wait to get paid?
- do you get paid in segments, or in full?

It does vary by platform. The three that I've invested in, apart from rate setter that is, generally offer a single agreed rate, typically 10-14%.

They vary in terms of payment, some will be monthly, some will be wrapped up though the former is more common.

Not sure what you mean by reference to segments, the loans are generally for defined periods but for Moneything they can be repaid early for example. Otherwise they generally seem to complete and can be rolled over or offered to new investors.

bowlhead99

bigadaj wrote: »

Early days for me and I can't see myself committing to more than a few per cent of my inevitable wealth

Ha, if only the rest of us were so fortunate that we considered our wealth to be 'inevitable'

:beer: