Different fee structure for wholesale. Also, what evidence is there for retail getting first pick at the loans?
I thought a loan went to one or the other and that was the end of it.
Printable View
If what Joker has communicated is true (HM stating "there is now two marketplaces"). From HM own mouth, previously there was only one.
I can't see any reason they'd sidestep the truth.
Everything else fall into place from there - historical difference in RAR, court case, 4th of May T&C's we signed, the lack of volume. All a function of allocation between two marketplaces from the prior single marketplace. Wholesalers still have the ability to bid in the retail platform (retaining their liquidity function), with the fewer amount of loans its more noticeable when Wholesale chomps them up.
You've not been around long enough leesal - existence of the Wholesale Marketplace and Retail Marketplace is not new, it just hasn't been so well defined as it is in the new documentation.
A quote from a Harmoney rep from October 2016:
"We don't offer the "cream of the crop" to our Institutional Lenders. Loans are randomly distributed between the wholesale and retail markets, and are risk-graded on the same criteria irrespective of which market they go to. Because each Lender has total control over which loans they chose to (or not to) invest in, there's unlikely to be many Lenders who are exposed to exactly the same risk - which is why we highly recommend that Lenders diversify their portfolios (you can find out more about diversification here:.." Grace@Harmoney
As for the rest - speculation I think. Harmoney have always had the right to swing the balance of loans into the Wholesale Marketplace if there is a requirement...I suspect there is at the moment.
Suspect the emergence of this parallel market could explain why the activity stats have been turned off.
I hope we continue to get both wholesale (ie both markets consolidated) and retail stats in the spirit of openness which, to be fair, has existed thus far.
Of course it's their business to operate as they wish but if availability continues at this level it's basically over for anyone with more than a few $K who wishes to be well diversified.
Let's analyze your statement. Would not the opposite be the case?
Wholesale investors, in my view, put large chunks of money into each loan so would more likely invest in the less risky loans like A grades and low B's, thereby reducing their overall RAR.
Likewise, retail investors buying just one note of $25 into many higher risk loans are more likely get a higher return over time?
Personally speaking, being in for 39 months, I have through experience ditched the low interest loan Grades A's and low B's and also the Extreme risk loan Grades E and F, where I have encountered a 15% Charge-off rate, and now intensely concentrate lending into the "mid-Range Risk grades" providing my latest RAR of 13.89%.
I had the impression that (at one time) wholesale paid higher fees. Avoiding E's and F's has also been RAR beneficial in my experience.
Very slow last week at Harmoney. I got only one autolend loan compared to my usual 15 - 20 before the loan listings crashed in May. Funds available for investment are rising at an unbelievable rate despite doubling the number of notes per loan I buy via autolend since late May. LC is better but funds available there are also on the increase.
In that case, funny they should bang on about the two marketplaces in their communication to Joker.
If so and both marketplaces have previously existed albeit in a less formalised state, gives the impression they're could be increasing wholesale for a reasonable length of time... Otherwise I'd expect their Investment-Relations line to be much different.
Interesting comment by a borrower!
Borrower Comments
I was scammed out of $3500 and this loan will help purchase the telescope I was attempting to buy
Something has changed in respect to Wholesale investors as the mentioned 'funding model' is new. Just what that change is is not overly clear to me.
Wording suggests that Wholesale investers now have two options:
i) just give Harmoney a lump of money and get them to invest it for them
ii) take a more active role in the investment process
The above is speculation...
The current lull could be due to Harmoney testing something new...perhaps the AI grading 'thing' that they alluded too a while back...a new Wholesale invester wanting all their funds invested ASAP as part of signing up... could even be the integration of Payment Protect into RAR figures... who knows...
Just want the stream of #*@&ing loans to come back online... ^oo^
This is how Harmoney is running its Australian arm. Over there, they are only licensed to operate P2P for high net worth "sophisticated" investors. To join, you need to give them $2m to invest in loans on your behalf. I hoped to get in with a lower amount but they weren't keen because of my NZ tax residency but said they would pass my details on for Harmoney NZ to contact me for the same type of operation. They never did and I wouldn't be interested in Harmoney picking loans for me anyway.
Attachment 9726
http://www.harmoney.com.au/investors