Peer-to-peer lending sites: MSE guide discussion
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many like Lending works are trying to work through ISA money in April but at least with them any reinvested money goes to the front of the queue0
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One other extremely shady aspect of the whole situation is the individual who infiltrated one of the other forums and made a series of posts designed to build confidence in COL, then after the FCA got involved made some false claims in order to rally lenders against the appointment of BDO.
I note that this individual's account is not banned at the time I write this and he has been active on said forum today. In contrast, others have been banned for speaking out against him.
I'm pretty sure there are 3 or 4 fairly obvious platform shills over there.
I tend to distrust members who seem to be on first name terms with platform employees - referring to the first administrator by her christian name seemed over-familiar.. There are always a few 'tells'... the lobbying seemed bizarre.0 -
Regarding MT Prestbury - bearing in mind that LTV of 65%, only 90% was recovered
The initial distribution from the administrator was 89% with a further 5 - 7% due on completion. They are also looking at recovering money taken out of the company inappropriately shortly before the sticky brown stuff hit the fan.0 -
grey_gym_sock wrote: »...
you'd expect about the same by just shoving your money in a cautiously managed corporate bond fund, such as https://www.vanguardinvestor.co.uk/investments/vanguard-global-credit-bond-fund-investor-gbp-hedged-accumulation-shares and that has much lower risk and better regulatory protection.
But is actually losing money, thanks for the tip (not)0 -
But is actually losing money, thanks for the tip (not)
Agreed, hardly an investment paying 3.1% with another 0.35% in fees. So effectively 2.75%.
Inflation is 3%+ last time I looked - not quite as bad a flushing tenners down the loo, but still losing money in real terms.
Still P2P isn't for everyone, and this should be fairly safe.0 -
But is actually losing money, thanks for the tip (not)
very recent performance (down c. 3% from peak value) is not a good way to predict the future. it does demonstrate that the fund can go down as well as up.
compared to p2p, it has vastly less default risk (it is 90%+ in investment grade bonds, and very well diversified; p2p is always junk, and not always well diversified), but more term risk (temporary losses in asset value, due to being locked into fixed interest rates when rates rise; the fund's money is locked in for an average of 6.4 years; p2p is typically much shorter-term).
the latter risk happens to have showed up (in a small way) over the last few months: (some) bond prices have fallen a bit, and their yields risen.
unlike p2p, you can always get your money out of this fund right away if you want to. but that may be for a small loss. if you leave it in for a years, it will make you money. you don't have to worry about large parts (or all) of your capital disappearing, which you do with p2p (whether that is due to a cluster of defaults, or platform fraud or maladministration).
if you know what to expect from it, the fund is a good, boring, holding, which won't keep you awake at night.Agreed, hardly an investment paying 3.1% with another 0.35% in fees. So effectively 2.75%.
that's exactly how i'd start estimating the likely return from this fund. but then i'd want to add something for likely gains from rolling short-term bonds into longer-term bonds. as time passes, the bonds the fund holds all gradually become shorter term, and it will gradually be selling some of its shortest-term bonds (which have lower YTM) and replacing them with longer-term bonds (which have higher YTM). which boosts returns (assuming a positive yield curve - which is the usual situation, including now). i don't know how to quantify this, but as a vague stab, perhaps we're back to about 3%.Inflation is 3%+ last time I looked - not quite as bad a flushing tenners down the loo, but still losing money in real terms.
looking backwards over 12 months, somewhere between 2.3% (CPIH) and 3.3% (RPI). so IMHO the fund is currently looking likely at least to match inflation.0 -
Ratesettler are giving £100 if I put in £1000.... https://www.ratesetter.com
What do people reckon? seems like a good idea to me? Just wanted to check.0 -
It's a good offer0
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It's down 2.67% for 2018 so far and about 2% since it started in late 2017. But that's to be expected because...grey_gym_sock wrote: »very recent performance (down c. 3% from peak value) is not a good way to predict the future
it's poorly invested for an environment of rising interest rates, so further capital price losses can be expected. Since this is an accumulation fund the interest payments might mask that.grey_gym_sock wrote: »more term risk (temporary losses in asset value, due to being locked into fixed interest rates when rates rise; the fund's money is locked in for an average of 6.4 years; p2p is typically much shorter-term).
It doesn't look like a good investment choice at the moment. If a bond fund is desired, something with lower average term looks like a better idea.grey_gym_sock wrote: »if you know what to expect from it, the fund is a good, boring, holding, which won't keep you awake at night.
Of course you have to worry about capital loss and with this fund it looks more likely than not that capital will be lost by those who invest now. Minimal chance of losing all of the capital but if the broker where you hold the fund fails you can be locked in for the duration of the administration and be compelled to take large capital losses from the administration costs, if you hold more than £50,000 of total investments at the broker.grey_gym_sock wrote: »if you leave it in for a years, it will make you money. you don't have to worry about large parts (or all) of your capital disappearing0 -
fun4everyone wrote: »It's a good offer
U reckon this is the best offer to go with at the moment if i am investing £1000? How is rate settler?0
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