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20-07-2018, 03:57 PM
#411
Originally Posted by unhuman
So some big changes coming then... I assume they are targeting their existing mortgage base for these new homeowner loans.
SM looking like a very conservative investment now. Max rate 8.5% with double protection being first the reserve fund and security on the homeowner loans.
Would I be right in assuming that most who take out the homeowner loans will consolidate into their mortgage, at which point SM looks very much like one year term deposits on slightly higher rates.
Personally this is too low risk / low return for me. One assumes they are targeting big sums held on term deposit.
Where are you getting 1 year term deposits any where near that high?
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20-07-2018, 11:38 PM
#412
Member
Not what I said.
Based on the email they sent out it appears SM are positioning themselves further away from Harmoney at the lower returns end of the market attempting to entice people with large sums tied up in term deposits who can earn much greater returns for a minimal increase in risk while keeping liquidity. Looks to be a great opportunity for these people. Looks to be a great opportunity for SM as well to leverage off their mortgage business as customer growth for them based off small retail investors on debt consold's is likely limited.
I applaud SM's retail only focus and will continue to reinvest the funds I have in them currently - being roughly 5% of my portfolio and the only real cash investment held as hedging. But I won't be introducing anything further for these new loans at 6-8% gross is too conservative for someone in my age bracket.
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24-07-2018, 09:52 PM
#413
Junior Member
Anyone else having trouble logging into Squirrel today? Can't get the login screen either on Edge or Chrome.
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24-09-2018, 04:19 PM
#414
Member
Selling two loans-
1. $477.02 @ 8.5% (4yrs, 10mnths)
2. $464.39 @ 8.35% (4yrs, 5mnths)
They're available on the secondary market now.
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12-11-2018, 08:42 AM
#415
Originally Posted by unhuman
Not what I said.
Based on the email they sent out it appears SM are positioning themselves further away from Harmoney at the lower returns end of the market attempting to entice people with large sums tied up in term deposits who can earn much greater returns for a minimal increase in risk while keeping liquidity. Looks to be a great opportunity for these people. Looks to be a great opportunity for SM as well to leverage off their mortgage business as customer growth for them based off small retail investors on debt consold's is likely limited.
I applaud SM's retail only focus and will continue to reinvest the funds I have in them currently - being roughly 5% of my portfolio and the only real cash investment held as hedging. But I won't be introducing anything further for these new loans at 6-8% gross is too conservative for someone in my age bracket.
At this stage of the cycle it may well be the time to de-risk. After years of low interest rates and quantative easing, after a prolonged boom in asset prices including real estate and share prices, 8% gross pa going forward for the next few years could be a good return.
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12-11-2018, 02:25 PM
#416
Has Anyone got an order filled at the 'good old day' rates of 9% in say the last 5 months??
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12-11-2018, 03:11 PM
#417
Member
9% no longer exists. the highest rate is 8.5% for 5-7 years. It appears that the fastest way to get your money invested and working for you is 6% for 1 year which is still double what you get for a bank term deposit.
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13-11-2018, 12:55 PM
#418
Originally Posted by icyfire
9% no longer exists. the highest rate is 8.5% for 5-7 years. It appears that the fastest way to get your money invested and working for you is 6% for 1 year which is still double what you get for a bank term deposit.
Thanks for the update ICYFIRE... I'll ask a different question now
Has Anyone got an order filled at the rate of 8.5% in say the last few months??
I see as of today, there is 133K of funds waiting for 8.5%
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13-11-2018, 01:56 PM
#419
Member
Originally Posted by Saamee
I see as of today, there is 133K of funds waiting for 8.5%
There is no funds waiting for that rate so it must have gone.
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13-11-2018, 09:43 PM
#420
Originally Posted by icyfire
There is no funds waiting for that rate so it must have gone.
We must be looking at different pages!! 5-7 Years still 133K waiting to go!!
SM 8.5.jpg
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