sharetrader
Page 161 of 163 FirstFirst ... 61111151157158159160161162163 LastLast
Results 2,401 to 2,415 of 2435

Thread: Harmoney

  1. #2401
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default

    Quote Originally Posted by permutation View Post
    I don't want to see a lot of red ink on my loan book.
    Just change it to blue ink - problem solved

  2. #2402
    Member
    Join Date
    Jan 2017
    Posts
    73

    Default

    A NZ P2P update, today.

    http://www.interest.co.nz/personal-f...ding-platforms

    Pretty much all the user comments on the above article reflect my thinking.
    Standout quote "Harmoney attracts a low calibre of borrowers and its growth has come from it trawling rather than fishing for loans"

  3. #2403
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default

    Quote Originally Posted by icyfire View Post
    A NZ P2P update, today.

    http://www.interest.co.nz/personal-f...ding-platforms

    Pretty much all the user comments on the above article reflect my thinking.
    Standout quote "Harmoney attracts a low calibre of borrowers and its growth has come from it trawling rather than fishing for loans"
    Err, that is a complete misquote!

    The writer clearly hasn't researched non-NZ P2P lending to get an understanding of how it has fared in a downturn.

    Many borrowers turn to P2P lending because it's cheaper than banks! Sure Harmoney also cater for lower calibre borrowers, but the interest rate reflects that! I don't think they try to say otherwise? It is the lenders choice. If you look at the data provided by Harmoney, there lending profile is improving, not getting worse as many suggest here - I suspect they just don't understand the graphs etc. provided and perhaps shouldn't be investing in P2P because they don't understand it well enough and draw very wrong conclusions.

    I don't understand why people who see Harmoney as such a bad model invest in it! Hypocrisy?

  4. #2404
    Member
    Join Date
    Jan 2017
    Posts
    73

    Default

    Quote Originally Posted by myles View Post
    I don't understand why people who see Harmoney as such a bad model invest in it! Hypocrisy?
    Some people put small amounts in Harmoney loans with caution while not falling for the hype.

  5. #2405
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default

    Quote Originally Posted by icyfire View Post
    Some people put small amounts in Harmoney loans with caution while not falling for the hype.
    What hype?

  6. #2406
    Member
    Join Date
    Jan 2017
    Posts
    73

    Default

    Quote Originally Posted by myles View Post
    What hype?
    Read the user comments on that article again.

  7. #2407
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default

    Quote Originally Posted by icyfire View Post
    Read the user comments on that article again.
    What hype?

  8. #2408
    Senior Member
    Join Date
    Aug 2012
    Posts
    1,198

    Default

    When you invest in loan note that offers an interest rate of for example over 25%, there must be an understanding that there is considerable risk attached to the intact return of your capital. The borrowers may have been refused credit by other organisations as the number of enquiries may or may not indicate.Some may call that trawling for borrowers.
    Last edited by Bjauck; 12-07-2017 at 09:31 AM.

  9. #2409
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default

    Quote Originally Posted by Bjauck View Post
    When you invest in loan note that offers an interest rate of for example over 25%, there must be an understanding that there is considerable risk attached to the intact return of your capital. The borrowers may have been refused credit by other organisations as the number of enquiries may or may not indicate.Some may call that trawling for borrowers.
    Any difference from banks offering Credit Cards at ~23% cash advance rate? Those same banks offering 'lenders', at best, 4% return?
    D, E and F loans currently make up ~15% of Harmoney loans (June 2017) - personally I think it needs some perspective? It is not Harmoney accepting the loans...

  10. #2410
    Senior Member
    Join Date
    Aug 2012
    Posts
    1,198

    Default

    Quote Originally Posted by myles View Post
    Any difference from banks offering Credit Cards at ~23% cash advance rate? Those same banks offering 'lenders', at best, 4% return?
    D, E and F loans currently make up ~15% of Harmoney loans (June 2017) - personally I think it needs some perspective? It is not Harmoney accepting the loans...
    True, Harmoney offer the opportunity to the investors, who need to be realistic in accepting the risk that the borrower paying 25% in interest may default.

  11. #2411
    Member
    Join Date
    Jan 2017
    Posts
    73

    Default

    Also, people just starting out investing in Harmoney loans need to be aware that most borrowers on Harmoney have probably been turned down by the banks as deemed too risky. Borrowers who have a mortgage would get a much lower interest rate loan from the bank. Even the borrowers who don't have a mortgage would get a personal loan at a much lower interest rate from the banks.
    Harmoney's risk grades are also often questionable. This week there was a B3 loan where the borrower was asking for $50k with a monthly income of $3,900 and monthly loan payment over $1k. That loan should've been a much higher risk grade.

  12. #2412
    Member
    Join Date
    May 2016
    Posts
    71

    Default

    Quote Originally Posted by icyfire View Post
    Also, people just starting out investing in Harmoney loans need to be aware that most borrowers on Harmoney have probably been turned down by the banks as deemed too risky. Borrowers who have a mortgage would get a much lower interest rate loan from the bank. Even the borrowers who don't have a mortgage would get a personal loan at a much lower interest rate from the banks.
    Harmoney's risk grades are also often questionable. This week there was a B3 loan where the borrower was asking for $50k with a monthly income of $3,900 and monthly loan payment over $1k. That loan should've been a much higher risk grade.
    So why do institutional investors (Like Heartland Bank and TSB) take the majority of Harmoney listings? And, no, they don't get to cherry pick.

  13. #2413
    yeah, nah
    Join Date
    Mar 2017
    Posts
    116

    Default Post your best borrower comment :)

    Start something different: Post your best borrower comment:

    Life is definitely like a box of chocolates you never know what your gonna get - the latest pick was some new shocks for my car. Am not wanting to fly out of the window in this cold so thank you in advance for helping me

  14. #2414
    Member
    Join Date
    Jan 2017
    Posts
    73

    Default

    Quote Originally Posted by RMJH View Post
    So why do institutional investors (Like Heartland Bank and TSB) take the majority of Harmoney listings? And, no, they don't get to cherry pick.
    Why did the banks around the world loan money to anyone with a pulse before the GFC and lost $4.1 trillion? Greed and fear of missing out.
    Last edited by icyfire; 13-07-2017 at 11:19 PM.

  15. #2415
    Member
    Join Date
    May 2014
    Posts
    97

    Default

    Have you guys look at your arrears, and the loans that represent them, and how much of a $ this is of your overall portfolio and the value of it?

    ie the % of your portfolio at risk? - obviously most of these loans in arrears will get back on track, but some will blow up into full defaults.

    My % has been going up and up over time (I guess this is expected?) I am 11 months in now and its doubled in the last 5 months (from 3.5% to 7%), representing about $7k of loans. It is a concern because I am guessing its a lead indicator of defaults...

    For anyone that has a mature portfolio, what does this % look like?

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •