P2P: Ablrate

bigadaj

economic wrote: »

i have around 30k in P2P (about 4% of my net worth) spread across 9 platforms. key thing is spreading the risk. i wont be increasing my exposure to P2P given it is highly illiquid and still very new. i continue to make adjustments and move money between the platforms in order to optimise risk-reward. i try to have more money in the auto P2P since i dont really want to spend too much time on it (its about effort vs reward as well) and they are easy for diversification (manual ones take so long if you want more diversification).

Diversification is good, but there are a number of platforms I don't find attractive, either poor returns, due diligence, defaults, illiquid, non transparent etc


Which 9 do you use, I'm currently using 3 and am happy with those, and may add one or two more as my investments grow.

economic

bigadaj wrote: »

Diversification is good, but there are a number of platforms I don't find attractive, either poor returns, due diligence, defaults, illiquid, non transparent etc


Which 9 do you use, I'm currently using 3 and am happy with those, and may add one or two more as my investments grow.

i use the following:

lendy
moneything
ablrate
collateral
ratesetter
lendingworks
fundingcircle
assetz
landbay

which do you use? which ones out of my list do you think are not good platforms? im derisking from lendy but will only have a small amount in there.

elephantrosie

assetz i think isnt that great...

bigadaj

economic wrote: »

i use the following:

lendy
moneything
ablrate
collateral
ratesetter
lendingworks
fundingcircle
assetz
landbay

which do you use? which ones out of my list do you think are not good platforms? im derisking from lendy but will only have a small amount in there.

Currently using Moneything, Ablrate and collateral. Pulled out of Lendy a few months ago, used Ratesetter to get the bonus and closed it down earlier this year.

Several other platforms seem to suffer from high default rates, and often poor returns for the risk, typically don't hold anything less than 10%. To be honest I'm happy with what I use and deal flow has been ok so not rushed to expand too much.

dharm999

Ablrate
Collateral
Arch over
Mintos

Checking out Assetz as well, but trying to minimise my exposure to property, which is difficult to do, as I am trying to invest more in
P2P

jamesd

P2P liquidity varies a lot. The only assurance is end of loan term if the borrower doesn't default. That can deliver timed liquidity events, as can the places which offer monthly accounts.

But practical liquidity is usually far better than that.

If you want to pay the price both RateSetter and Zopa offer the ability to sell, if there is a buyer, and there usually is within a day or two, though if interest rates have risen you will pay a possibly significant penalty to deliver the current rate to the buyer.

At Ablrate you can probably make anything on the secondary market very liquid by offering a sufficient discount; someone sold many tens of thousands of a pub loan that was otherwise moving slowly in a couple of days by offering discounts up to 4%, I put money in and took more than £10k of that myself.

At MoneyThing there are loans like the pawn shop and art that seldom come up for sale and are highly desired so they sell very rapidly when offered, regardless of market conditions, so far. The AE loans are similar, probably more so now most of theirs have repaid. Rates above 12% also do well.

At Collateral the pawn (bling...) loans are popular and likely to get more so as the market becomes dominated in volume by property.

jamesd

Drp8713 wrote: »

can fund by debit card, can see all scheduled repayment dates and amounts clearly

For anyone who hadn't noticed it, that see all future payments bit is reached by clicking on the next payment date or amount.

Worth knowing that Ablrate pays a percentage fee for debit card payments. If you get money to their bank account before 9AM it's usually applied in the following hour and again for money reaching their account before 5PM. Other times as well but those are the pretty much always ones and there usually isn't any evening or overnight bank payment processing. Likely to be more frequent when loans are just made available, though. Use debit card if it's urgent but every fee they pay is more margin that they have to keep to pay it instead of passing it on to us in better rates, so it's nice to try to keep their costs down when we can.

They are looking into changing bank to get much faster processing times for bank transfers in and out, no word on timing for that yet.

economic

its also worth noting that if you sell any loan in the secondary market (across all P2P i think), you receive no interest from the point it enters the sales queue. so even though it hasnt sold you stop earning interest.

jamesd

Not across all P2P, applies to just two platforms that I know of, Lendy and Collateral. At Ablrate and MoneyThing you continue to accrue and be paid interest while a loan is for sale.

That's part of why there's usually a lot of availability on the Ablrate secondary market, it's harmless to make an offer and leave it there in case someone comes along who wants to take it. With Ablrate the buyer pays you the interest accrued up to the point of sale and gets paid by the borrower at their next payment, they can deduct the accrued interest they paid you from this interest payment they receive. The Ablrate interest accounting doesn't yet include this, but it will.

At MoneyThing you get a pro-rated interest payment from the borrower when they make their next payment.

So Ablrate is a more clean sale - you lose all exposure to the borrower - while at MoneyThing you've sold the capital exposure but are still exposed to the risk for up to a month's interest.

TheShape

takesyourchances wrote: »

I think reading on the P2P forum that was an error stating £2000 to open the ISA. I opened the ISA yesterday and so far have just put £300 in it and matched it to loans.

Has anyone invested in the new loan today? It is filling quick with a few mixed opinions on the P2P forum.

I put just £100 into it adding to the new ISA as I had already put into other loans this week across P2P so that was my lot for this week.

How did you fund your IFISA? The t&cs definitely state a minimum initial subscription of 2000(£).

Having been quite busy lately I put off opening the IFISA because I wanted to dedicate some time to 'moving' investments from my standard account to the IFISA. £2000 is well beyond the amount I'd invest in an individual loan so some selling from the standard Account and buying in the IFISA would be necessary.