sharetrader
Page 28 of 49 FirstFirst ... 1824252627282930313238 ... LastLast
Results 271 to 280 of 485
  1. #271
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    834

    Default

    Swung back today > Borrowers this afternoon now waiting for Investors Funds!!


    Capture.jpg
    Last edited by Saamee; 30-03-2017 at 01:55 PM.

  2. #272
    Member
    Join Date
    Jan 2017
    Posts
    152

    Default

    Quote Originally Posted by Saamee View Post
    Swung back today > Borrowers this afternoon now waiting for Investors Funds!!
    great news, in that case I'd better deposit some more money

  3. #273
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    834

    Default

    Just noticed the Reserve Fund has fallen under 3% now at 2.92% - 1st time i have sighted it below that level.

    Although their Loan book is now over $7.1M they must have Written off quite a few Loans at the end of the Month \ Financial Year....

    SM.jpg

  4. #274
    Guru
    Join Date
    Aug 2012
    Posts
    4,663

    Default

    I don't fully understand how it operates. It has been operating for more than a year now, so I don't think Squirrel is obliged to keep the reserve fund at 4%. Perhaps it is naturally decreasing to a lower % without write-offs?

  5. #275
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    834

    Default

    Quote Originally Posted by Bjauck View Post
    I don't fully understand how it operates. It has been operating for more than a year now, so I don't think Squirrel is obliged to keep the reserve fund at 4%. Perhaps it is naturally decreasing to a lower % without write-offs?
    Yes your right now it is floating and will move downwards more. It did take a large drop over the Weekend.

  6. #276
    Member
    Join Date
    Jan 2017
    Posts
    152

    Default

    I think that it's been hovering around the 208-209k mark for a few months.
    On their website it says: "What happens if the Reserve Fund runs out?

    Our expected loss rate on the existing loan book is 1.3%, however we are currently reserving at 1.9% which provides 1.5x coverage over the expected loss rate each year."
    Last edited by icyfire; 03-04-2017 at 09:21 PM.

  7. #277
    Investor
    Join Date
    Oct 2016
    Posts
    200

    Default

    Quote Originally Posted by Bjauck View Post
    I don't fully understand how it operates. It has been operating for more than a year now, so I don't think Squirrel is obliged to keep the reserve fund at 4%. Perhaps it is naturally decreasing to a lower % without write-offs?
    Squirrel decides what percentage of loan income is allocated into the fund, currently 1.9%. Correct, they have no obligation in terms of the fund's balance. They chose to start it off with $200k of their own funds and now periodically decide what % of loan income to allocate to it based on predicted losses.
    Last edited by Investor; 04-04-2017 at 05:27 AM. Reason: 1.9%

  8. #278
    Junior Member
    Join Date
    Apr 2017
    Posts
    12

    Default

    Does the current reserve fund of $208k still include the $200k from Squirrel? If it does, wouldn't this indicate that the expected loss rate is actually closer to 2% (not 1.17%) if the reserve levy is currently 1.94%?

  9. #279
    Member
    Join Date
    Jan 2014
    Posts
    480

    Default

    Quote Originally Posted by baldricknz View Post
    Does the current reserve fund of $208k still include the $200k from Squirrel? If it does, wouldn't this indicate that the expected loss rate is actually closer to 2% (not 1.17%) if the reserve levy is currently 1.94%?
    The site suggests a 2016 bad debt rate of 0.6% (0% for 2017, I think it's the bad debt on loans issued in that year). If I understand it correctly, the loan book will grow quicker than the reserve fund (when a loan is made it immediately adds to the book but only dribbles into the reserve fund as payments are made), so it's not surprising to see the coverage ratio dropping as the loan book grows, now that Squirrel don't have to keep it topped up.

    https://www.squirrelmoney.co.nz/platform-statistics/

  10. #280
    Senior Member
    Join Date
    Sep 2015
    Location
    Norf Eyelynd
    Posts
    834

    Default

    Quote Originally Posted by baldricknz View Post
    Does the current reserve fund of $208k still include the $200k from Squirrel? If it does, wouldn't this indicate that the expected loss rate is actually closer to 2% (not 1.17%) if the reserve levy is currently 1.94%?
    Yes it does. As the loan book grows the Reserve Fund Levy will decrease accordingly. Plus it will get depleted quicker as and when Loans are Written Off.

    I get uncomfortable seeing the Reserve Fund getting lower and lower - felt happier when it was sitting @ 4% over the 1st year of their trading...

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •