Peer to Peer - how much money is at risk?

masonic

Nardge wrote: »

Out of interest and for my own learning in the investment realm, why wouldn't you partake in Chip or Revolut's funding rounds? I'm assuming you'd include Monzo in that list too?

You can also include most of the other c. 6 million UK businesses in the private sector.

Chip Financial LTD had a total of 3 employees at the time its last published accounts and made a loss of £58k, had debts of £120k and doesn't appear to have generated any appreciable revenue from its activities. Revolut LTD posted a loss of £14m (against a turnover of £13m) up from a £7m loss the previous year - it spends £2 for every £1 it makes. Monzo Bank Limited posted a loss of £31m (against an income of £2m) up from a £7m loss the previous year - it spends almost £5 to generate £1 of income.

I myself invested in Chip, and may cherish or regret that at a later date, but if Revolut or Monzo are something to go by, people investing in the latter two at inception have now made a fortune?

If anyone has made a fortune out of either of these companies then their fortune has been paid for by using other investors' cash. None of the companies mentioned have tradeable shares, so the only way to sell them is if the company wants to buy them and the money the company pays for them is money given to it by other investors. That's what is more commonly known as a Ponzi scheme.

The businesses don't make money, in fact they burn through cash at an alarming rate and are only trading because they've been able to convince people to shovel money into them. Perhaps they will eventually grow so large that they will be able to stem their losses, maybe one day they might turn a profit, but there is about an 80% chance they will fail.

Regarding your 12 P2P Companies, if you did not mind, may I ask which they are? I'm already in Ratesetter, Zopa, Funding Circle, Growth Street, Lending Crowd, Assetz Capital, Kuflink, and Octopus Choice (8 Firms), and will be spreading those funds further into Lending Works very soon. I'm keen to note which three to four other firms you might suggest (I have noted your distaste of Funding Circle)? This is addressed at anyone else invested into P2P too...

It wouldn't help you to know. Over half of them I no longer use. The main platforms I still use that aren't on your list are Ablrate and Moneything.

usman330

Thrugelmir wrote: »

Possible to obtain a yield of over 7% by investing (indirectly) in in a portfolio of RMBS. Far less risky.

That sounds really interesting. Can you share some info on how to invest in RMBS as a retail investor and platforms you go through.

masonic

usman330 wrote: »

That sounds really interesting. Can you share some info on how to invest in RMBS as a retail investor and platforms you go through.

There are funds that have significant RMBS holdings, the one that immediately springs to mind is the investment trust TwentyFour Income (TFIF)