@leesal - Do you have an update on movement?
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Nothing. Still bidding for $500 worth at 9%.
Have no idea on whether any loans before mine on 9% have been filled.
The "Recently Funded" figure changes on a regular basis so that means all the orders with lower interest rates are picked up first
It's clear that many of us (myself included) are very happy with about 8.5% interest on 5-year loans. I think there are quite a few reasons:
1. In the context of bank interest rates running at just over 4%, 8.5% is excellent
2. Bidding around this figure greatly increases the rate at which investments are taken up, avoiding money just being squirreled away in Squirrel's bank account (sad no interest for that...)
3. Keeping lender interest rates as low as possible probably decreases borrower defaults and problems -- though defaults matter less to us than to other P2P lenders
4. It stops me feeling I'm committing the sin of usury, and may still go to heaven
--any other reasons, for or against?
Reason against - Race to the bottom.
Is +4.5% an adequate MRP for the inherent riskiness of the debt
@ Saamee - no movement. Filtering a good chunk through Harmoney, not that worried if doesn't get picked up.
I have moved all of my money from Squirrel already due to low return of 8.5%. The reason to open an account with squirrel was the Reserve fund which gave me a sense of safety against loan defaults. I have been able to achieve 12.5% with Harmoney in the last 3 years and it is easier to find loans to lend on their platform.
LC is even better than Harmoney when it comes to returns but it is near impossible to find loans there.
There has been a very low number of loans on HM in the last few weeks and out of those very few loans I wouldn't invest in 90% of them. It makes no sense to me to invest in HM loans at 9% interest rate considering those loans are unsecured, HM charges 15-20% in fees and HM can be very time consuming and time is money.
For the reasons above I'm personally very happy with earning 8.5% return on Squirrel Money.
Actually got into 4 x Loans @ LC over the last 7 days....
However still have funds there to invest more into.
Have read on the HM thread about lack of loans..... LC has been much quieter too since the beginning of this month!
Have heard their Ad's over the radio often everyday recently...
Today @ SM there is Funding from Lenders on offer for 5 Year Loans at a new low of 8%.
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Very much so,Doing this with Lending Crowd as there is a similar problem there