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16-05-2017, 09:55 AM
#691
yeah, nah
@Entrep, no one knows your risk appetite but you. In theory, if everything is 'normal', you probably have least risk in Squirrel, a little more in LC and a little more in Harmoney, but it very much depends on how you invest.
If there was suddenly a run on the 'shield' in Squirrel, and you have a large amount invested in a small number of loans you could find yourself well out of pocket.
The same could be said for the others, but a well diversified investment is always going to be the safest.
I struggle to get money into LC at $250 per loan at the moment, occasionally $500 (I suspect it would take you years not months to invest $50K, but that is only of what I've seen in the last 2 months). I'm not prepared to invest any more in a single loan as I think the risk is too high at that level.
The rule of thumb seems to be an investment size of 1% or less of your capital is the 'safe' amount. I personally try to invest more smaller amounts (I currently have an average loan size of $85 in each loan out of 50K in Harmoney that I'm very comfortable with). But then you need to consider the risk grades you invest in.
There is no one answer
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16-05-2017, 05:10 PM
#692
LC's has rolled out a fantastic run and choice of new loans today - Most were @ 14% or over.......
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16-05-2017, 10:33 PM
#693
Member
Originally Posted by Saamee
LC's has rolled out a fantastic run and choice of new loans today - Most were @ 14% or over.......
Yes, it was a beautiful thing, and I had cash on hand (for a change)
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16-05-2017, 10:42 PM
#694
Member
I was doing some work tonight to calculate loan distribution and noticed that of my 300 loans, 60 have been repaid, 20%. Since I started in Jan '16 that feels high.
From a grade distribution, I have a perfect bell curve of loans across grades at the moment (A2/B1 in the center), though no longer invest in A1 loans so it should slip to A2 - B1 - B2 over time (based on loan numbers). B1 loans see a larger piece of capital than the other grades.
Capture.PNG
From a summary perspective, 18 months in LC and I'm very happy, regularly adding new capital until I reach my next goal.
Harmoney, disappointed in the loan quality, and not injecting new capital; effectively written off what I haven't withdrawn and treating it as a long shot for any real capital gain.
Last edited by PennyPicker; 16-05-2017 at 10:50 PM.
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17-05-2017, 09:31 AM
#695
Member
Originally Posted by Saamee
LC's has rolled out a fantastic run and choice of new loans today - Most were @ 14% or over.......
Are we seeing the same thing? I saw about 3 to 4 As and Bs on 60mth terms - most over 14%. Better than its been but still seems pretty dry. I'm curious because I've got LC on a tight watching leash now so it would be odd if there were loans appearing I wasn't catching.
Originally Posted by PennyPicker
Harmoney, disappointed in the loan quality, and not injecting new capital; effectively written off what I haven't withdrawn and treating it as a long shot for any real capital gain
Agreed its not on par with LC but what distribution are you maintaining if you're not clearing 9% net p.a which seems like a pretty good return for the investment class (assuming good diversification)? I pulled funds out after the fee structure change last year but are ramping back in (to a point) mainly because the other providers don't have the same volume of loans.
"The market can stay irrational longer than you can stay solvent." – John Maynard Keynes
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17-05-2017, 11:21 AM
#696
Member
Originally Posted by mp52
I'm curious because I've got LC on a tight watching leash now so it would be odd if there were loans appearing I wasn't catching.
You're receiving email notifications for new LC loans?
Originally Posted by mp52
Agreed its not on par with LC but what distribution are you maintaining if you're not clearing 9% net p.a which seems like a pretty good return for the investment class (assuming good diversification)? I pulled funds out after the fee structure change last year but are ramping back in (to a point) mainly because the other providers don't have the same volume of loans.
Return is at the moment, over 12% which is we'll say the same as LC. So with them both returning the same, I'm happier treating LC as my primary p2p platform. Harmoney and the state of the loan applications I see give me an uneasy feeling. I know you shouldn't 'buy' on gut feeling, but in this case I feel like I'm de-risking using my gut (Disc I have < $10k in Harmoney.)
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17-05-2017, 11:53 AM
#697
Originally Posted by PennyPicker
You're receiving email notifications for new LC loans?
Return is at the moment, over 12% which is we'll say the same as LC. So with them both returning the same, I'm happier treating LC as my primary p2p platform. Harmoney and the state of the loan applications I see give me an uneasy feeling. I know you shouldn't 'buy' on gut feeling, but in this case I feel like I'm de-risking using my gut (Disc I have < $10k in Harmoney.)
Currently seeing 13.92% return at LC ( that's after their fee ) and ALL loans at least have some measure of security
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17-05-2017, 01:55 PM
#698
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19-05-2017, 04:06 PM
#699
That's an awesome 50.5K loan 19.1% .... Enough there for every one I think???
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19-05-2017, 05:23 PM
#700
Member
Originally Posted by Saamee
That's an awesome 50.5K loan 19.1% .... Enough there for every one I think???
still 20k left too
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