Harmoney

[Pipi]

I see (for the first time today and I have been looking regularly) that 2 loans are available. Both 99% full. Token ones in my opinion. Keep the small fry happy.

But is it keeping the small fry happy. I have not had an autoloans since 17th Dec. Then when they opened up the number of notes you could get on an autoloan I am struggles to even get any manually. My available cash is building up. I had a 10 year plan on what I was going to invest in harmoney. Now I am very disheartened , and starting to change my mind and thinking of withdrawing my money as it comes available.

[Saamee]

But is it keeping the small fry happy. I have not had an autoloans since 17th Dec. Then when they opened up the number of notes you could get on an autoloan I am struggles to even get any manually. My available cash is building up. I had a 10 year plan on what I was going to invest in harmoney. Now I am very disheartened , and starting to change my mind and thinking of withdrawing my money as it comes available.

Do look at both Lending Crowd and Squirrel...... Very good alternatives

[777]

But is it keeping the small fry happy. I have not had an autoloans since 17th Dec. Then when they opened up the number of notes you could get on an autoloan I am struggles to even get any manually. My available cash is building up. I had a 10 year plan on what I was going to invest in harmoney. Now I am very disheartened , and starting to change my mind and thinking of withdrawing my money as it comes available.

Pity I can't transfer my loans to you. Whittled down from $40,000 to $4,000 as I withdraw as fast as I can manage.

[BJ1]

There are two distinct issues at play here. One is whether P2P lending is an emotional or logical process. If the former, then don't be involved. If the latter then are the net returns generated consistent with Harmoney's projections - and what I see in this forum is that most participants are doing better than the platform and therefore better than Harmoney projects. The wholesale lenders are taking on the higher risk rubbishy stuff which is why their RAR is so far below retail (and lately dropping every time it is recalculated - perhaps a function of a shortage of D & E grade loans?).
The second issue is whether the default recovery process is being adequately handled. How would we know, because there is no information provided as to why defaults have occurred, what is being done, or anything. How come loans to homeowners don't result in recoveries (which seems to be the case applying the percentages of these borrowers I see)? We may not be secured but surely the legal process should result in a recovery?
But overall, why get out of a good return investment with good spread of risk just because it is time consuming to keep fully invested - the alternatives aren't that great. For those investors around $40k in, try taking larger chunks than 4 notes - your risk spread will allow double that easily.

[Halebop]

...The wholesale lenders are taking on the higher risk rubbishy stuff which is why their RAR is so far below retail (and lately dropping every time it is recalculated - perhaps a function of a shortage of D & E grade loans?)...

Hi BJ1, I suspect this isn't quite right. As an investor biased towards "rubbishy" loans (10% B, 35%+ C & D Respectively and 15% E) my 2 years returns are higher than system by a good deal (almost 17%pa), hopefully an appropriate compensation for higher risk (but the real test will be performance during a recession!)

Wholesale investors incur a different fee structure and I think you may find it is A & B loans that are driving their weighted returns, not E&F (Look at the Harmoney stats page, there aren't high volumes of these higher risk loans anyway, 50% of volumes share A&B loans, only 10% are E&F).

[Pipi]

Do look at both Lending Crowd and Squirrel...... Very good alternatives

Yes I am with Lending crowd also, so may start transfering money to them.

[icyfire]

And here it was me thinking that E & F loans were the rubbishy loans. Perhaps I need to reevaluate my strategy without getting too greedy!

[BJ1]

[QUOTE=Halebop;658654]Hi BJ1, I suspect this isn't quite right. As an investor biased towards "rubbishy" loans (10% B, 35%+ C & D Respectively and 15% E) my 2 years returns are higher than system by a good deal (almost 17%pa), hopefully an appropriate compensation for higher risk (but the real test will be performance during a recession!)............

My bad. I meant that the wholesale investors are picking up the remainder after retail has picked the best loans out of the pool - so wholesale gets higher losses, but perhaps not. Agree though, that with low volumes wholesale will be picking up more A & B which also drives their return down.

I do wonder why any retail investor would want F Grade when E is available as after Harmoney fees and projected default the net return on all F grades is less than E5 (and F5 is less than D1)

[mlt322]

$720 written off, $4 recovered, $141 in arrears on $28k invested. Still have an RAR of 15.61%

[mlt322]

Hi everyone, it's been a while since I showed my face around here but I see discussion is still alive and well.

Some time back, one of the members developed an app that would email details of new loans coming onto the Lending Crowd market which I subscribed to until LC developed this facility for themselves (good on you LC).

I seem to recall that this service was available for Harmoney loans too but now I can't find the website to set it up. If it's still available, could you please let me know who to contact. Thanks muchly in advance.