Defined Benefits Scheme - Transfer or Not

232607

TBC15 wrote: »

Why not 3 yrs of cash in bonds?

My concern is that in times of market distress bonds may no longer be un-correlated to equities, IE they also go south.
I would like to keep the 3 years of reserve in something that gives a return, if only covering inflation. But not at the expense of risking this also falls.

Question for the more experienced people on here & it is a bit "left field" so I'm in danger of being shot down.
How do you think P2P would hold up in times of market distress?
I appreciate its untested so probably hard to say.
I've seen where some of the loans are secured on 60-70% of the value of the security. Would this 40-30% buffer help guard against loss in a crash should the security need to be claimed?
It's one ares where I'm not too knowledgeable so as I say, be gentle with me.

Thrugelmir

232607 wrote: »

How do you think P2P would hold up in times of market distress?

Depends on who you've lent to. Each loan you make needs to be considered on it's own merits. Whether the rate offered is adequate for the potential risk. Would\Do you read the small print, or simply invest on the basis of the yield on offer?

232607

Thrugelmir wrote: »

Depends on who you've lent to. Each loan you make needs to be considered on it's own merits. Whether the rate offered is adequate for the potential risk. Would\Do you read the small print, or simply invest on the basis of the yield on offer?

I certainly would read the small print. My worry be if the devil is NOT in the detail.

Thrugelmir

232607 wrote: »

I certainly would read the small print. My worry be if the devil is NOT in the detail.

Even the detail isn't enough. Commercial projects often don't run to plan. Too many unknown quantities.