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11-03-2017, 02:49 PM
#2011
Originally Posted by mlt322
Hi everyone, it's been a while since I showed my face around here but I see discussion is still alive and well.
Some time back, one of the members developed an app that would email details of new loans coming onto the Lending Crowd market which I subscribed to until LC developed this facility for themselves (good on you LC).
I seem to recall that this service was available for Harmoney loans too but now I can't find the website to set it up. If it's still available, could you please let me know who to contact. Thanks muchly in advance.
The creator of the service posted this just yesterday on the LC thread....
http://www.sharetrader.co.nz/showthr...l=1#post658477
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11-03-2017, 07:17 PM
#2012
Investor
[QUOTE=BJ1;658668]
Originally Posted by Halebop
Hi BJ1, I suspect this isn't quite right. As an investor biased towards "rubbishy" loans (10% B, 35%+ C & D Respectively and 15% E) my 2 years returns are higher than system by a good deal (almost 17%pa), hopefully an appropriate compensation for higher risk (but the real test will be performance during a recession!)............
My bad. I meant that the wholesale investors are picking up the remainder after retail has picked the best loans out of the pool - so wholesale gets higher losses, but perhaps not. Agree though, that with low volumes wholesale will be picking up more A & B which also drives their return down.
I do wonder why any retail investor would want F Grade when E is available as after Harmoney fees and projected default the net return on all F grades is less than E5 (and F5 is less than D1)
Retail investors with a significant amount of capital don't get to choose a filter or even loan grades, Harmoney invests the funds across the platform for the client. It's likely to be the same for commercial investors.
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12-03-2017, 11:58 AM
#2013
Member
Originally Posted by Wsp
While a low repayment ratio may indicate that a loan may be easier to service the borrower may have other debt. As such when a borrower takes an additional loan with a low repayment ratio it may in effect be a high repayment ratio when considered along with all their other debt payments. Ie the borrower may be using 30% of their income to service debt and an additional loan through harmoney which only requires 5% of their income to service in effect takes them to 35%. But as lenders we don't know this.
HM should display the borrower's monthly outgoings like LC does.
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12-03-2017, 07:10 PM
#2014
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13-03-2017, 12:34 PM
#2015
Member
Originally Posted by BJ1
There are two distinct issues at play here. One is whether P2P lending is an emotional or logical process. If the former, then don't be involved. If the latter then are the net returns generated consistent with Harmoney's projections - and what I see in this forum is that most participants are doing better than the platform and therefore better than Harmoney projects. The wholesale lenders are taking on the higher risk rubbishy stuff which is why their RAR is so far below retail (and lately dropping every time it is recalculated - perhaps a function of a shortage of D & E grade loans?).
The second issue is whether the default recovery process is being adequately handled. How would we know, because there is no information provided as to why defaults have occurred, what is being done, or anything. How come loans to homeowners don't result in recoveries (which seems to be the case applying the percentages of these borrowers I see)? We may not be secured but surely the legal process should result in a recovery?
But overall, why get out of a good return investment with good spread of risk just because it is time consuming to keep fully invested - the alternatives aren't that great. For those investors around $40k in, try taking larger chunks than 4 notes - your risk spread will allow double that easily.
yeah I do 8 notes now on a lot of loans
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15-03-2017, 07:10 PM
#2016
Member
A ton!
yikes! reach a milestone I rather not have. 100 defaults. 21months in, 4300+ loans in total with a bit less than 3000 active. The rest paid off.
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16-03-2017, 10:48 AM
#2017
Member
You are so right BJ1, it has made me re-think, and put a bit more effort in. Was just a bit frustrated as things were working so well, now they are not. Every time I log in, all loans seem to be gone. Will just have to try a few more times a day. Cheers
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16-03-2017, 02:15 PM
#2018
Member
Originally Posted by Cool Bear
yikes! reach a milestone I rather not have. 100 defaults. 21months in, 4300+ loans in total with a bit less than 3000 active. The rest paid off.
whats your average notes per loan?
Are you more weighted the D-F end?
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16-03-2017, 08:40 PM
#2019
Member
Originally Posted by alistar_mid
whats your average notes per loan?
Are you more weighted the D-F end?
No, initially more weighted to A and B. now about even A to D with lesser E and F. Minimal notes.
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17-03-2017, 02:28 PM
#2020
Member
Originally Posted by Cool Bear
yikes! reach a milestone I rather not have. 100 defaults. 21months in, 4300+ loans in total with a bit less than 3000 active. The rest paid off.
More important than the number, what percentage of your gross interest has been written off?
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