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Thread: Harmoney

  1. #1381
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    Quote Originally Posted by Longhaul View Post
    Purely as an interested observer, I wonder how P2P lending will perform during a recession?

    Anyone have any thoughts about this?
    Does defaulting on a Harmoney loan carry the same penalties as one with a bank? Or do they not have the same protections and strike on credit record.

  2. #1382
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    @Longhaul, good question; It's something that's been discussed a bit on the Lend Academy podcast (http://www.lendacademy.com/category/podcast/). Remembering, that in the US, p2p lending started during the GFC, which is a tick in the box that there's stability there. But it's still formally untested in a recession like you're referring to.

    Et al, as a note, the most recent LC podcast, episode 69, is with Jon Barlow, Founder of Eaglewood Capital. It was a really, really good listen. There's a good section where they cover p2p lending in Australasia.

    Of note, he's exiting investing in unsecured consumer credit because as he reads the macro economics, it's not doing as well as other consumer lending markets. This is primarily because banks and investment funds have been able to flood the platforms with capital for low risk investments and that has depressed the interest rates in the US. He sees the US market as going through a commoditisation process.
    Last edited by PennyPicker; 01-08-2016 at 12:10 PM.

  3. #1383
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    Quote Originally Posted by JohnMac View Post
    Things must be getting desperate. Cant wait until I have withdrawn all my investments from them.
    I don't agree that 'things must be getting desperate', the dates were April 2014 - Oct 2015. Granted a long period, but nearly a year ago.

    I'm of the view that people and businesses err, and it's how they deal with those errors afterwards that matters.

  4. #1384
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    Quote Originally Posted by Longhaul View Post
    Purely as an interested observer, I wonder how P2P lending will perform during a recession?

    Anyone have any thoughts about this?
    Zopa have been going over 10 years... And of course there is data on unsecured lending going back decades.

  5. #1385
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    Quote Originally Posted by PennyPicker View Post
    I don't agree that 'things must be getting desperate', the dates were April 2014 - Oct 2015. Granted a long period, but nearly a year ago.

    I'm of the view that people and businesses err, and it's how they deal with those errors afterwards that matters.
    I totally agree and the fact that they stopped the practice in 2015 and now pleaded guilty is for me a positive sign of confidence.

  6. #1386
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    "Originally Posted by JohnMac Things must be getting desperate. Cant wait until I have withdrawn all my investments from them."



    Sounds to me more like an over zealous marketing campaign which crossed the line of acceptability in NZ. We do have quite strong consumer protection legislation and it is enforced often enough to keep most bigger companies in line. These charges will not have any impact on any investment decisions I make.
    Last edited by Art; 02-08-2016 at 06:35 AM. Reason: Forgot to quote

  7. #1387
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    Quote Originally Posted by Longhaul View Post
    Purely as an interested observer, I wonder how P2P lending will perform during a recession?

    Anyone have any thoughts about this?
    That is going to be the true test of P2P lending. For what it is worth my guess is that the lower grades will have a lot more defaults and the better grades will have a few more but the increase will not be as extreme. I think if borrowers can retain their jobs they will tend to struggle through a recession.

    But overall I think consumer lending is a much better bet than second and third mortgages to property developers - when it all turns to custard the first mortgagee sells them up and gets most or all of their money back leaving those next in the queue high and dry.

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    The other issue for consumer lending P2P in a recession might be a lack of borrowers? When people are concerned about their income they stop spending.

  9. #1389
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    Quote Originally Posted by Art View Post
    The other issue for consumer lending P2P in a recession might be a lack of borrowers? When people are concerned about their income they stop spending.
    There is a Brexit recession brewing in the UK. There are indications that investment decisions are being put on hold. It will be interesting to see how UK P2P fares...if there are fewer borrowers.

  10. #1390
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    This is a head scratcher for me. Supposed to be going out to September 2020 but have repaid over 60% of the principal already. Some early repayments maybe?
    Picture1.jpg

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