P2P: Saving Stream (AKA SavingStream)

JohnRo

I have no insight into exactly why, it's simply a function of the pipeline loans, contract lengths and repayment delays.

Perhaps the easiest explanation is the best, that defaulted borrowers are low quality and should have been better vetted in the first place.

I don't have any access to information about how much of a haircut, on average, defaulted lenders are having to endure, or how long it might take, on average to get some or all of their defaulted loan capital back.

If the 12%+ default rate persists then it suggests the juicy 12% pa interest is not nearly as attractive as it appears. Simply covering the default costs, assuming a loan length of one year, doesn't sound like much of a proposition to me.

There's always the SM of course, palm off loans prior to maturity and pocket the interim interest. There doesn't seem to be any mechanism to price in the default risk there so it's a simple, no cost fix, assuming a buyer can be found.

That's what I was doing before walking away from SS a few months ago but keeping an eye on their progress.

bigadaj

economic wrote: »

thats a big jump in number in default. any reason why?

It's almost wholly a function of the loan length. Their definition of defaults is after 180 days of non payment, so if you look at the previous analysis and add the defaults with the interest accruing the totals aren't that different.

Lendy do seem to have had a little more success in recovery and their offered rates have increased slightly back into double figures, which was necessary to get new loans away with the increased risk that seems to exist.

The secondary market has also shrunk slightly but little else has improved.

I've no regrets at pulling out a few months ago eventhough my invested sum was only low four figures at the time, there's definitely better options for your money out there.

economic

bigadaj wrote: »

It's almost wholly a function of the loan length. Their definition of defaults is after 180 days of non payment, so if you look at the previous analysis and add the defaults with the interest accruing the totals aren't that different.

Lendy do seem to have had a little more success in recovery and their offered rates have increased slightly back into double figures, which was necessary to get new loans away with the increased risk that seems to exist.

The secondary market has also shrunk slightly but little else has improved.

I've no regrets at pulling out a few months ago eventhough my invested sum was only low four figures at the time, there's definitely better options for your money out there.

Can you list the p2p platforms you recommended please? I'm trying to increase my investment in p2p and finding it difficult to determine which are the good ones (risk reward is attractive). Thanks

bigadaj

I'm currently in Moneything, Ablrate and collateral. All are good so far, but dyor and I don't invest in every loan they offer, but do in most. I'm using diversification as a key element of reducing risk, and currently have a low five figure sum in p2p in total.

I've not suffered a formal default yet, though there is a property loan on Moneything that is being restructured, though they seem confident of getting out with no investor loss.

Similarly the container loan has a slight cloud over Ablrate but I had no sum in this so haven't followed it fully.

The difficulty in virtually all platforms is that they start by offering diverse security but once they grow and want to play with the big boys then property pretty much always becomes a key element for the larger loans. So by proxy investing in p2p becomes supported by either commercial or residential property at larger values. To be fair Ablrate do a better job of diversification, having started with aircraft loans and now offering plant and capital equipment backed options, a yacht recently etc

bottleandahalf

Hi
I have several loans with days remaining in the minus e.g time remaining -34 days. Does this mean that the loan has defaulted?

I have not received any interest on all my loans this month by the looks of it.

bigadaj

bottleandahalf wrote: »

Hi
I have several loans with days remaining in the minus e.g time remaining -34 days. Does this mean that the loan has defaulted?

I have not received any interest on all my loans this month by the looks of it.

There's a rather fluid definition of default on Lendy.

Do these loans have SBL, IA or IOA descriptors, or any other similar label?

JohnRo

[B]Asset Details        % Book       Asset value        Loan Value    % pa     LTV[/B]
  
In Default           13.15%   £ 39,860,000.00   £ 24,937,750.00   12.00%  62.56%

Interest Accruing    11.76%   £ 39,790,000.00   £ 22,289,279.00   12.00%  56.02%

Interest Serviced     0.00%   £             0   £             0       0%      0%

Interest on Account  75.09%   £361,644,055.00   £142,357,049.00   11.62%  39.36%

Loan Book Total     100.00%   £441,294,055.00   £189,584,078.00   11.67%  42.96%

bottleandahalf

bigadaj wrote: »

There's a rather fluid definition of default on Lendy.

Do these loans have SBL, IA or IOA descriptors, or any other similar label?

Hi, where do we find these labels please?
Thanks

bigadaj

bottleandahalf wrote: »

Hi, where do we find these labels please?
Thanks

The post above yours.

It should also say on your loans sheet.

bigadaj

JohnRo wrote: »

[B]Asset Details        % Book       Asset value        Loan Value    % pa     LTV[/B]
  
In Default           13.15%   £ 39,860,000.00   £ 24,937,750.00   12.00%  62.56%

Interest Accruing    11.76%   £ 39,790,000.00   £ 22,289,279.00   12.00%  56.02%

Interest Serviced     0.00%   £             0   £             0       0%      0%

Interest on Account  75.09%   £361,644,055.00   £142,357,049.00   11.62%  39.36%

Loan Book Total     100.00%   £441,294,055.00   £189,584,078.00   11.67%  42.96%

So, you're presumably not back 'in'?