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04-05-2018, 03:50 PM
#3201
Investor
Originally Posted by myles
Good news maybe. Roller-coaster interest rates say something about poor forecasting or errors to me.
Let's hope this now becomes more stable.
Perhaps they weren't happy with the previous potential rates of return. This latest update will take my expected return after tax up approx 2.5% p.a., according to rough excel modelling.
Last edited by Investor; 04-05-2018 at 03:53 PM.
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04-05-2018, 05:02 PM
#3202
Member
Originally Posted by Harmoney9
The Investor Agreement and Disclosure Statement have been updated to reflect a new funding structure that allows Harmoney to invest in loans as another wholesale lender, putting its capital at risk just like you.
Hmmm, are we about to get (even more of) the good loans cherry picked from under us?
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04-05-2018, 05:07 PM
#3203
Investor
Originally Posted by Vagabond47
Hmmm, are we about to get (even more of) the good loans cherry picked from under us?
Clever move on Harmoney's part.. Very interesting.
Edit: That should complicate things r.e. their battle with the commerce commission about the fees they are charging.
Last edited by Investor; 04-05-2018 at 05:19 PM.
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04-05-2018, 06:41 PM
#3204
Member
Should be worth about 3% gross to me but I wonder if available volumes will decline. I was this very day mulling upping my exposure to P2P.
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04-05-2018, 08:00 PM
#3205
yeah, nah
Re Cherry picking: it should be fairly obvious from the retail vs wholesale RAR graph that cherry picking doesn't actually happen the way some suggest...
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04-05-2018, 08:51 PM
#3206
Investor
Harmoney stated in their announcement that they would be lending under the same conditions as other wholesale lenders (directly implying that they aren't going to 'cherry pick').
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04-05-2018, 08:55 PM
#3207
Member
Looks like an admission by Harmoney that interest rate reductions called scorecard 1.5 were too low (as evidenced by a severe drop in the RAR graph since).
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04-05-2018, 09:42 PM
#3208
Member
Originally Posted by joker
Looks like an admission by Harmoney that interest rate reductions called scorecard 1.5 were too low (as evidenced by a severe drop in the RAR graph since).
Oh!, does that mean I should stop withdrawing my available cash balance everyday because of the recent decline in return??
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04-05-2018, 10:05 PM
#3209
Member
Originally Posted by myles
Re Cherry picking: it should be fairly obvious from the retail vs wholesale RAR graph that cherry picking doesn't actually happen the way some suggest...
Depends whether you are picking for sweetness or shelflife. Will be interesting to see if the lines cross in an economic downturn.
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04-05-2018, 10:21 PM
#3210
yeah, nah
Originally Posted by Vagabond47
Depends whether you are picking for sweetness or shelflife.
Hmm, maybe - I personally don't think so. A low RAR doesn't necessarily indicate good "shelflife", e.g. F Grade (high interest) loans with high default rates will give you a similar RAR to A Grade (low interest) loans with low default rates. If there is a shift downward the F Grade loans return will no doubt fall and I suspect this would be reflected in the wholesale RAR more than the retail RAR.
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