P2P: Saving Stream (AKA SavingStream)

JohnRo

Indeed, it's just that the trend appears to show the value of loans soft defaulting and passing through three months of SBL on their way to IA are set to increase significantly over the next few months so unless the pipeline is kept well stoked things could start to unravel quite quickly there.

Especially with any protracted recovery and legal costs on what look to me like massively inflated valuations in quite a few cases.

Thrugelmir

bigadaj wrote: »

Assuming they are taking 0.5% a month in the currently serviced loans then taht would be enough to subsidise the default interest currently.

Business has operating costs. What do the Directors draw as remuneration?

JohnRo

I just looked at the sheet again, within the next 99 days there are £45,855,098 worth of loans, on assets valued at £89,980,000, that could potentially enter SBL.

That's getting on for half a million quid a month. It would also, as things currently stand reduce the interest paying loans on the book by approximately one third.

I've whittle my exposure down to just over three grand from eight grand with them over this month so far and have decided to try and get out completely before the new tax year starts.

masonic

JohnRo wrote: »

By my reckoning SBL interest (at 1% a month) is costing Lendy just under a quarter of a million quid a month as it stands currently. Alarm bells are ringing.

I wouldn't be at all surprised if this practice stopped when it comes under the scrutiny of the FCA. P2P firms are already banned from using their own capital to invest in loans. It would seem a natural extension to prohibit them from using their own capital to service loan interest. Perhaps the provision fund will be used to cover interest in the future, in which case there will be less protection for recovery shortfalls.

masonic

JohnRo wrote: »

I just looked at the sheet again, within the next 99 days there are £45,855,098 worth of loans, on assets valued at $89,980,000, that could potentially enter SBL.

I like the creative use of currency symbols. If those are SS dollars, I wonder what the assets are really worth

JohnRo

oh flippin eck

bigadaj

JohnRo wrote: »

I just looked at the sheet again, within the next 99 days there are £45,855,098 worth of loans, on assets valued at £89,980,000, that could potentially enter SBL.

That's getting on for half a million quid a month. It would also, as things currently stand reduce the interest paying loans on the book by approximately one third.

I've whittle my exposure down to just over three grand from eight grand with them over this month so far and have decided to try and get out completely before the new tax year starts.

I had a few thousand in until a couple of weeks ago, things seemed to be heading downhill so I've cashed out.

A read in the p2p forum shows how many people are selling out well ahead of redemption, it has the air of a scheme with the bottom layer presumably made up of more naive people chasing returns without being too concerned about the risk of capital loss.

By the above I don't opign any sort of illegality or fraud, simply that it appears to be unsustainable in the medium term.

JohnRo

If they can keep new pipeline loans rolling in I dare say they'll weather the storm but the new loans would need to be a heck of a lot less default prone than the current crop seem to be.

Turtle

Just put all mine up for sale (not much by most standards but I still wouldn't want to lose it), been nervous for a few days. Most of it has gone already and I'll put a withdrawal request in before I go to bed. Hopefully only be a few hundred quid left by then.

george4064

I am interested to know where you are moving your money to from SS?