Ratesetter

Lemonjuiced

I am withdrawing as well, due to the long queues ,it's going to take months with no guarantees.

bugbyte_2

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

jennyjj

bugbyte_2 said:

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

I'm pretty irritated at how hard it is to extract and download a report with the status of all loans. That should have been a simple feature to have on the site. That the feature isn't there tells me a lot about the attitude of the management there. That and the happy smiley implied reassurances which don't stand up to scrutiny. So, the provision fund covers xx% of the interest and yy% of capital. but it takes some digging to find what those numbers really mean.... and it's not good.

bowlhead99

jennyjj said:

bugbyte_2 said:

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

I'm pretty irritated at how hard it is to extract and download a report with the status of all loans. That should have been a simple feature to have on the site. That the feature isn't there tells me a lot about the attitude of the management there. 

As the market evolved over time it became clear to the operators of the site that what most of their type of customers would want was to simply loan out their money on a pooled basis with an shared provision fund, rather than to selectively assess opportunities, make and monitor hundreds of loans and track all the loan parts etc. 

Thus the individual customers wouldn't need to be provided with hugely detailed statements and complex reports of the minutiae of their exposures - because the customers would not be engaging in detailed credit assessment, strategic planning and portfolio construction within the credit opportunities they faced, unlike a more professional investor in credit assets.

You can blame it on 'management attitude' but at the end of the day if the customer base will buy the product without those features, the customer is always right, and so the more simplistic product is what will be provided. Making money from arrangement fees or lending margin is a volume game. If you'll get more volume at lower cost by providing a dumbed-down service than something with complexity or 'value-added' reporting that jennyjj wants but a thousand Joe Bloggses aren't fussed about, you'll cater to the thousands of Joe Bloggses, while Jennyjj can like it or go somewhere else. 

Your fellow customers are to blame as much as the management - for simply taking the product as is, rather than instead sharing your opinion on what features are necessary and being vocal about that.

bugbyte_2

Got my bonus today for 1 years worth of investment, so pleased. May return to Ratesetter in less turbulent times.

michaels

bugbyte_2 said:

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

How are you getting the to work, I put some new funds on at 8% but had a capital repayment on 1st June that was loaned out again at 1.5% immediately.  What worries me is that those still in the market's funds are being used to release the funds of those who asked to withdraw first each time interest or capital is repaid.  When this happened with the Woodford funds they were wound down in an orderly manner to be fare between all investors rather than those who get out first doing so at the expense of those still locked in.  Which regulator required the Woodford funds to be wound down in this way?

masonic

michaels said:

bugbyte_2 said:

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

How are you getting the to work, I put some new funds on at 8% but had a capital repayment on 1st June that was loaned out again at 1.5% immediately.  What worries me is that those still in the market's funds are being used to release the funds of those who asked to withdraw first each time interest or capital is repaid.

You need to go in and edit your reinvestment settings. Putting new funds on the market at 8% won't make that your default setting for funds that are repaid.

I agree with you it strikes me as a little unfair those who are in the withdrawal queue can't even keep hold of the slow trickle of repayments that come in from their underlying loans, except through using this trick. But this is one of the drawbacks of a 'black box' system such as the one RS is operating.

michaels

masonic said:

michaels said:

bugbyte_2 said:

Extracted another £11.53 today using the 8% method. I have a large loan maturing mid May so see if it works then!

How are you getting the to work, I put some new funds on at 8% but had a capital repayment on 1st June that was loaned out again at 1.5% immediately.  What worries me is that those still in the market's funds are being used to release the funds of those who asked to withdraw first each time interest or capital is repaid.

You need to go in and edit your reinvestment settings. Putting new funds on the market at 8% won't make that your default setting for funds that are repaid.

I agree with you it strikes me as a little unfair those who are in the withdrawal queue can't even keep hold of the slow trickle of repayments that come in from their underlying loans, except through using this trick. But this is one of the drawbacks of a 'black box' system such as the one RS is operating.

thanks.  Hadn't been able to find this setting.  I do feel like those later in the queue for withdrawals are currently 'bailing in' those who are getting their pay-outs.  Surely those getting pay-outs now should be having them adjusted to something closer to their actual value rather than getting everything back whilst those slower off the mark (I had forgotten about the RAF sign up I did untiI I got an April statement email)  end up making a total loss because they end up holding all the non-performing sh*te.

Grr - just seen one account had 300 quid go through it in the last few days after I had put another tenner on at 8% thinking this would also have updated the relend rate

coyrls

That's not how it works.  While the provision fund is viable, you are actually better off with a non-performing loan if you want your money repaid; once the loan is classed as non-performing it is taken over by the provision fund and the balance of the loan is repaid to you.

Malthusian

michaels said:

What worries me is that those still in the market's funds are being used to release the funds of those who asked to withdraw first each time interest or capital is repaid. 

True, but, you know, P2P. Kind of the name of the game.

When this happened with the Woodford funds they were wound down in an orderly manner to be fare between all investors rather than those who get out first doing so at the expense of those still locked in.  Which regulator required the Woodford funds to be wound down in this way?

The usual one, the FCA.

To be fair we should note that anyone who cashed out of Woodford prior to around April 2019 also cashed out at the expense of investors who remained in. They cashed out based on hallucinogenic valuations of the unlisted shares, which was funded by selling the valuable liquid shares. This left less in liquid assets to go around the remaining investors when reality asserted itself.

Any investment based on mark-to-model rather than mark-to-market (which includes P2P where the platform sets the value of the loan book at which participants cash out) has this risk.