Squirrel Money P2P

[icyfire]

Has anybody managed to invest in loans for 5-7 or 2-3 years recently? If so, at what rate?

Currently there is $131k for 1 year awaiting funding.
I'm thinking that it would be better to put money to work now and get 6% return instead of waiting for weeks/months for a higher return.

What y'all think?

[TB@squirrel.co.nz]

Hi icyfire. I'm CFO at Squirrel.
We are definitely still getting loans pushed through in the 5-7 and 2-3 year categories - around 60% of the new lending this month.
The loans funded in the 5-7 year bucket this month have had an average investor rate of 8.14% and 7.03% for the 2-3 year loans.
I would encourage you to look at the 1 year loans for at least a portion of your investment portfolio. We have a strong pipeline in that space and as you highlight - you can have your money invested almost immediately with the $131k of loans currently awaiting funding.
The key feature of these one-year investments (other than the lower return of-course) is that it is interest only for the first 12 months - so investments don't get repaid quite so quickly.

[couta1]

Decided to venture over here for a bit of diversity, will see how it goes but if I dont get any bites after a few weeks I'll be out.

[icyfire]

Decided to venture over here for a bit of diversity, will see how it goes but if I dont get any bites after a few weeks I'll be out.

Squirrel Money is more of a set it and forget it kind of P2P platform unlike other p2p lending platforms which are very time consuming.

[Saamee]

FY2019 RWT Tax Certificates are already available Online for Download

[CageyB]

Anyone having any luck at all with Squirrel recently? The loan volume appears to have collapsed, even more so than Harmoney.

[couta1]

Anyone having any luck at all with Squirrel recently? The loan volume appears to have collapsed, even more so than Harmoney.

Yep hard to get any money loaned out for 2-3 yrs for over 6.5%.

[Bjauck]

Anyone having any luck at all with Squirrel recently? The loan volume appears to have collapsed, even more so than Harmoney.

I wonder if loan volume has dropped as a result of the fall in house sales and as a result of drop in loan demand more generally. It would be interesting to see if bank lending has fallen too. Also perhaps some people are waiting to see if there are major tax reforms as a result of the TRG report before taking on loans.
https://www.nzherald.co.nz/business/...ectid=12221621

[beacon]

Looks like high interest loans available on Squirrel secondary market, but buyers queuing up for lesser interest rates. Unaware? Does Squirrel inform its investors, I wonder ...

[TB@squirrel.co.nz]

Looks like high interest loans available on Squirrel secondary market, but buyers queuing up for lesser interest rates. Unaware? Does Squirrel inform its investors, I wonder ...

Hey there beacon.
Thought I would jump in and respond to your post - its a good question to raise...

Loans that appear on the Squirrel P2P Secondary Market will generally get matched automatically on the following basis:

Investor Interest Rate
The new Investor(s) must have an Investment Order with an interest rate that is less than or equal to the interest rate of the investment being sold. In this regard, a matched Investor that had an Investment Order with a lower interest rate will benefit by receiving the higher interest rate on the investment being sold. The platform will match from the lowest interest rate to the highest.

Investment Term
An Investor will automatically be matched to and transferred into an investment that is being sold if their Investment Order matches the amount (greater than or equal to) and interest rate (less than or equal to) - noting the selection order mentioned above. The Investment Term remaining on the investment to be sold must be within 3 months of their requested term for 24-month and 36-month Investment Orders or 12 months for 60-month Investment Orders. For example,an Investor with an Investment Order for 36 months will automatically be matched to an investment being sold with 34 months remaining (assuming the Investor Interest Rate criteria is met). An email will be sent to anew investor to accept or decline an investment when the remaining term on an investment that is for sale is outside this tolerance.

Loans that have experienced a credit event
Investments being sold where the underlying Loan has suffered a Credit Event (i.e. missed repayment(s),hardship, default) will not be automatically matched to an Investment Order and instead an email will be sent to the new Investor disclosing the details of the Credit Event associated with the Loan and providing an opportunity to accept or decline the investment on that basis. Under this scenario, a new Investor continues to benefit from the protection offered by the Reserve Fund and does not directly bear the credit risk of the underlying Loan to which they are investing.

When you see loans sitting on the secondary market for longer than an hour or so, it is usually because the remaining term on the loan slips outside the tolerances for auto matching above, or the loan being sold has had some form of credit event. In those cases, the platform will be waiting for confirmation from the investor(s) who best match the loan (one way or the other).

Hope this answers the 'wondering' from your post a few weeks back.

Cheers,
Tim (CFO at Squirrel)