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  1. #31
    An Awesome Cool Cat winner69's Avatar
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    Quote Originally Posted by Baa_Baa View Post
    Good point, it is an inconvenient truth that just by virtue of deploying a genuine P2P platform, major funding sources are the same institutions that might make it difficult for the desperate and needy borrowers through normal banking channels. A way for the bank to conduct higher risk lending with low costs of engagement. In a sense is it B2P (bank 2 person) via a 'low doc' 'low cost' channel.I wonder about when the quantum of low doc loans reaches a marketable 'book' whether the modern equivalent of CFD's will emerge and the book 'sold' into the musical chairs money-go-round until it is held by the institutional party least able to sustain the risk of default.
    You are on to it mate, esp the last sentence

    The money men might be able to resist th temptation
    Last edited by winner69; 01-02-2016 at 10:27 AM.
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  2. #32
    Guru peat's Avatar
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    Quote Originally Posted by Baa_Baa View Post
    the modern equivalent of CFD's will emerge and the book 'sold' into the musical chairs money-go-round until it is held by the institutional party least able to sustain the risk of default.
    I think where you used CFD you mean CDO's (collateralised debt obligations cf Contracts for Difference) , but yes the point is valid
    For clarity, nothing I say is advice....

  3. #33
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    "We've looked at the P2P lenders from the perspective of borrowing - but how about if you want to invest?"

    http://www.interest.co.nz/personal-f...ou-want-invest

  4. #34
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    Quote Originally Posted by peat View Post
    While I do like the concept of P2P lending immensely and wish it every Success, now that there is a thread on whether it is an investment , it has clarified my thinking on the matter.

    Certainly neither buying shares in a P2P vehicle or lending money to borrowers via a many to many platform could currently be considered of investment grade. None of the vehicles operating have been around long enough - the models aren't proven.

    But are they investments? Of course they are though I would place them very firmly in the high risk category, essentially junk.
    The reason for this in my opinion is that the theoretical benefits obtained from loan diversification will be negated by high failure rates, and especially high failure rates during periods of stress.
    its exactly the same principle as the securitisation of low,quality mortgages a la the cause of the GFC. Having lots of them all bundled together doesn't magically turn them into AAA.
    except that they are highly correlated to and share many similarities with the credit card market

    and the credit card market was fine in the biggest recession of recent times, the GFC, as was p2p lending.

    http://www.lendingmemo.com/p2p-lendi...n-performance/

  5. #35
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    "Investing" in Harmoney loans is almost the same as gambling especially the E & F grades. It's a pretty addictive game this so called P2P investing which a fairly new game in NZ and the real test for P2P lending will come during a recession. Harmoney keeps boasting about how much money it's lent but IMO HM should be talking more about how much of "investors" money it has recovered.
    IMO Squirrel Money is the best platform out of all the p2p platforms in NZ as you are far more likely to at least get your money back when a recession hits. Warren Buffet's two rules are: 1) Don't loose money and 2) Don't forget the first rule
    Last edited by icyfire; 24-03-2017 at 07:47 PM.

  6. #36
    Guru peat's Avatar
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    Quote Originally Posted by alistar_mid View Post
    except that they are highly correlated to and share many similarities with the credit card market

    and the credit card market was fine in the biggest recession of recent times, the GFC, as was p2p lending.

    http://www.lendingmemo.com/p2p-lendi...n-performance/

    But returns did steeply dive by 20-40%...

    i could easily suggest that it is a leap of faith to correlate credit card debt and p2p lending.
    It might work out that way.

    As I said I am totally for the industry , I think its a great innovation, I just want folks to have a good idea about the risk.
    For clarity, nothing I say is advice....

  7. #37
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    Question for everyone here investing in P2P:

    How much of your portfolio is in P2P lending? I have roughly 18% at this stage

  8. #38
    Senior Member Toasty's Avatar
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    Quote Originally Posted by Kelvin View Post
    Question for everyone here investing in P2P:

    How much of your portfolio is in P2P lending? I have roughly 18% at this stage
    .002% at this point. I am adding to it tentatively. Started in Harmoney and then Lending Crowd. Once those are at a certain level, Squirrel money is next and then maybe some Lendme.

    Its good fun but I regard it as high risk even if security is offered.

  9. #39
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    Quote Originally Posted by Kelvin View Post
    Question for everyone here investing in P2P:

    How much of your portfolio is in P2P lending? I have roughly 18% at this stage
    18% of your fixed interest portfolio or total financial investments or total portfolio including real estate (including equity investment in owner occupied real estate?)

  10. #40
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    Quote Originally Posted by peat View Post
    But returns did steeply dive by 20-40%...

    i could easily suggest that it is a leap of faith to correlate credit card debt and p2p lending.
    It might work out that way.

    As I said I am totally for the industry , I think its a great innovation, I just want folks to have a good idea about the risk.
    P2P is new sector in NZ and I guess its risk is not fully known. BTW, with investment in NZX 50 companies, the returns(including drop in valuations) averaged about -26% in the financial year ending in 2009.

  11. #41
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    Quote Originally Posted by Kelvin View Post
    Question for everyone here investing in P2P:

    How much of your portfolio is in P2P lending? I have roughly 18% at this stage

    8%, target is 10%.

  12. #42
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    Quote Originally Posted by Bjauck View Post
    18% of your fixed interest portfolio or total financial investments or total portfolio including real estate (including equity investment in owner occupied real estate?)
    Total portfolio

  13. #43
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    27% of my total financial investment portfolio at present, but this will reduce. I don't include my home. I only include investments I can make income off.

  14. #44
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    Quote Originally Posted by Pipi View Post
    27% of my total financial investment portfolio at present, but this will reduce. I don't include my home. I only include investments I can make income off.
    Does your statement mean you are Proactively taking Funds out of P2P? If so can I ask you why?

  15. #45
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    Quote Originally Posted by Kelvin View Post
    Question for everyone here investing in P2P:

    How much of your portfolio is in P2P lending? I have roughly 18% at this stage
    about 7% of my total investments.

    Take the rental property out and its about 23%

    Including rental and owner occupier property its about 4.3%

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