Harmoney

[Investor]

Of course it's a moving target, but with a sufficiently large number of investors in the system, at any given time it should be fluctuating around a certain band, right? (For example, 5%-6%). My only filters are "no Fs" and, importantly, "36 month loans only". I don't know if I'll be in NZ in 5 years and there's no secondary market on Harmoney, which is limiting. I'll give that some more thought.

Fair point. Yeah I'm in the same position as you (deciding whether or not to take the plunge into 60 month loans). It seems people who are investing in 60 month loans are also having significant trouble in investing additional funds.

[RMJH]

Has anyone worked out what the current autolend threshold is? For a long time I was sitting at 3-4% of my total principal in available funds and autolend never invested anything. I recently added funds to go up to 8%, and no autolend investments so far. I do have some filters on, but I would expect something to go through.

I am finding autolend seems to just hold my loan investments with just over 8% cash. I am finding it impossible to grow my portfolio now because the loans come and go so quickly. I have upped the number of notes per loan but not changed the filters. I might try putting more cash in and see if that gets me more loans.

[Wsp]

My auto lend has been kicking in at around 7 or 8%.

[CageyB]

Cool, yes, I finally got my first auto-lend loan since December after taking mine up to 8%. It is kind of awkward, because while the Harmoney yields are great they're inflated by the fact that you have to have 8% of your money earning zero interest (albeit liquid and available for withdrawal) at any given time to continue investing, as manually investing it is very difficult.

[icyfire]

Cool, yes, I finally got my first auto-lend loan since December after taking mine up to 8%. It is kind of awkward, because while the Harmoney yields are great they're inflated by the fact that you have to have 8% of your money earning zero interest (albeit liquid and available for withdrawal) at any given time to continue investing, as manually investing it is very difficult.

Sounds like another potential revenue stream for Harmoney!

[Art]

I see that the Feb statements are now available. I don't know why they include all data from when you first opened the account each month - the second page of my statement is now over 82,000 lines of data! I would be happy if they just held detailed data from the latest month with totals only coming from the previous month. Perhaps then they would be quicker to produce and could be made available a bit sooner after end of month?

[Cool Bear]

Wow, if everyone is at 8%, it means Harmoney has access to $18M (8% of $233M current loans at 20 Feb as per their market stats) without having to pay interest. That is a lot of dough!

[Bjauck]

Wow, if everyone is at 8%, it means Harmoney has access to $18M (8% of $233M current loans at 20 Feb as per their market stats) without having to pay interest. That is a lot of dough!

They should really calculate the investor RAR on the money investors have in the platform - including the money in the platform, sitting in investors' accounts earning 0% interest.

[RMJH]

They should really calculate the investor RAR on the money investors have in the platform - including the money in the platform, sitting in investors' accounts earning 0% interest.

So what we will arrive at in time is a market rate of interest being a blend of zero and loan portfolio rate. Pity the benefit couldn't be passed onto borrowers which after all was one of the key points of P2P.

[myles]

Not sure how this can be attributed to Harmoney. I suspect it's simply due to excessive investors relying on Auto-Lend with criteria too tight and perhaps to many with high Funds Available due to lack of loan availability. Has anyone actually seen a loan that meets their Auto-Lend criteria not be picked up?

I'm new to Harmoney, but haven't been running a high Funds Available to Outstanding Principle ratio (until the last 2 days) and had picked up 18 Auto-Lends in 8 days. Having recently put in significant funds (higher ratio) I haven't seen any obvious change to Auto-Lend pickup rates.

I've had lots of time to monitor loans as they come in and cherry pick the ones that 'feel' right to me outside of my Auto-Lend criteria. None that I've seen that match my Auto-Lend criteria have not been automatically picked up. Currently at just over 80 loans typically 2 or 4 notes each. I have seen (or rather didn't see) one loan get picked up by my Auto-Lend criteria that never showed up - refreshing every minute - in the Browse loans area.

I don't restrict to 36 mth terms (to me 60 mth term loans offer better value on paper as the additional 24 mths is not the danger zone). A smaller number of available 36 mth term loans and a large number of Auto-Lend criteria set with that option is going to result in limited pickups. Nothing sinister here I don't think...

If Harmoney weight Auto-Lend based on Funds Available to Outstanding Principle ratio, which is actually a sensible/fair way to do it, then the issue is more to do with too many Lenders holding too much Funds Available in their accounts. Using this method, Harmoney are trying to reduce the higher ratios, not increase them.

At the end of the day it doesn't matter how they do it, what Available funds are in the total system won't change if there are no outstanding loans...