Post by skint4achange on Dec 14, 2017 11:14:55 GMT
Not as far as I can see. It appears to be the result of passive investors who have probably set their reinvestment levels a while ago and not been keeping up to date with what the market %'s have been doing.
The rate will drop to the lowest % rate of available investor funds. If you look though, it only requires £120k of loans to get the rate back to 5%.
There are 10 kinds of people in this world......Those that understand binary and those that don't!
Panic ye not saith the Lord. All of a sudden it will come to pass that RS will discover a "borrower" who wants many hundreds of grand - and careful placing of thy bets will be rewarded with 5-6%. Keep thine eyes open, though. Verily, I have missed 5.8/5.9% twice in the last fortnight.
Last Edit: Dec 15, 2017 17:09:59 GMT by oldgrumpy: typo
Panic ye not saith the Lord. All of a sudden it will come to pass that RS will discover a "borrower" who wants many hundreds of grand - and careful placing of thy bets will be rewarded with 5-6%. Keep thine eyes open, though. Veriy, I have missed 5.8/5.9% twice in the last fortnight.
As wise as he is grumpy. I wont mention the old part
'Tis the season to be jolly, but not lending. It's always slow and low in December, so enjoy the mince pies, rub yer hands and get ready for the borrowers to pile in in January.
Just wish I understood assetzcapital provision fund rules. Also wish for higher rates on Zopa+ and RS to rid itself of MR. Oh, and FS, more rolexes and less property developers please. Apart from that I'm a happy bunny.
As others have alluded, patience can be rewarding on this platform.
Rushing and investing immediately to try and avoid cash drag may not be the best strategy....e.g. the return on an investment @ 3.8% for 365 days is surpassed by a return of say @ 5.5% for 253 days i.e. in this instance it can be worth waiting 112 days....there is of course a possible risk that the rates may decline ...seems low in the currently economic climate.
Assuming it's the borrowers refinancing and not RS they are of course entitled to do it.
What is missing is some penalty for early redemption going to the the lender.
If for some reason this can't be charged directly to the borrower (I read somewhere that certain loans can't charge for early redemption) it should come from the extra profit made by RS from the second loan.