Harmoney

[permutation]

….I suspect that they wish to close the gap between the retail and wholesale RARs caused by retail investors selectively investing in the better loans and leaving the riskier loans to be filled by the wholesale investors. How else can one explain the variance in RARs?

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%.

[Investor]

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%.

According to Harmoney, wholesale investors don't get to choose which grades they invest in.

In my opinion loan volume will pick up again.

[RMJH]

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.

[Bjauck]

..
We now have 2 marketplaces:
1. Peer-to-Peer, where loans are funded from investments by retail and wholesale investors through our p2p marketplace; and
2. Wholesale funding, where whole loans are funded by our institutional partners. ...

Is Harmoney still peer-to-peer if "peers" are treated differently? Can borrowers choose whether they just borrow via the "peer-to-peer" market place as opposed to institutions funding their loan completely?

[joker]

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.

[leesal]

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.

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.

[leesal]

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

[myles]

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^

[myles]

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

There was a recent report about some NZ online high end telescope shop not delivering...

[joker]

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.
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