13 replies to this topic

[atharvai]

I have recently join ZOPA and started lending.

I have noticed that there is a lot of tweaking needed for the rates offered on a daily basis. However, I have noticed that for my lending offer a couple of days ago showed that 80% of the money was lent out, and now for the same offer only 30% is lent out.

I want to understand how that happens? has anyone seen this before? how to ensure this doesn't happen.

thanks in advance

[momac]

atharvai, on 03 May 2012 - 21:02, said:

I have recently join ZOPA and started lending.

I have noticed that there is a lot of tweaking needed for the rates offered on a daily basis. However, I have noticed that for my lending offer a couple of days ago showed that 80% of the money was lent out, and now for the same offer only 30% is lent out.

I want to understand how that happens? has anyone seen this before? how to ensure this doesn't happen.

thanks in advance

Hi and welcome to the forum.

Borrowers fall in and out of 'processing'.  Funds are matched at the time the borrower applies for a loan.

1.The borrower may fail to follow through (for any number of reasons) and the prospective loan will be 'unwound' and the allocated funds for that borrower deposited back in to your offer

2. The underwriters will review the loan application and 'zap' it after their in depth investigation of the borrower (for any number of reasons)

My recommendation is that you set a rate that satisfies your requirements, then review it weekly, otherwise the mind   boggles

Edited by momac, 03 May 2012 - 21:39.

[PoohBah]

Hi atharvai, and welcome to the forum.

atharvai, on 03 May 2012 - 21:02, said:

I have noticed that there is a lot of tweaking needed for the rates offered on a daily basis.

Not necessarily.  Once the initial urge to twiddle wears off and you have achieved a satisfactory balance of interest rate and speed of take-up, you may well decide to leave things alone for possibly weeks at a time.  Just don't be tempted to chase rates down, just to get money moving faster, and remember when setting your rates that you should allow for the lender's fee, possible losses, and your eventual tax liability.

Quote

However, I have noticed that for my lending offer a couple of days ago showed that 80% of the money was lent out, and now for the same offer only 30% is lent out.

By "lent out" you presumably mean that it was in processing.  That does not mean it was lent out, just that the funds had been matched to loan requests, and the loans have not yet either been disbursed or declined.  I suggest you take a look at the forum FAQs.

Quote

how to ensure this doesn't happen.

Stop lending!    Seriously, it's a normal part of the lending process.

You will soon be another Zopaholic.

[atharvai]

thanks

[kcrane]

atharvai, on 03 May 2012 - 21:02, said:

I have recently join ZOPA and started lending.

I have noticed that there is a lot of tweaking needed for the rates offered on a daily basis. However, I have noticed that for my lending offer a couple of days ago showed that 80% of the money was lent out, and now for the same offer only 30% is lent out.

I want to understand how that happens? has anyone seen this before? how to ensure this doesn't happen.

thanks in advance

You can (and I used to) tweak rates constantly to, as Star Wars would have it, stay on target.

However I suspect what you might have seen is the effect of market forces, which given we're on the 'wrong' side of this particular market is a darn nuisance.

As of a quick check this morning the aggregate demand across all markets is £11m. The aggregate supply is £25m. That's a recipe for falling rates if I ever saw one and lo and behold, despite having set up several offers at different bands and leaving them alone so they get a good place in the queue, my lending has almost dried up.

[figures18]

kcrane, on 05 May 2012 - 08:26, said:

The aggregate supply is £25m.

I'm not too hot on aggregate supply but we do only have around £4.6mil available on the supply side with £11 mil demand over the past 7 days.  Shouldn't be a problem if demand remains constant.

[Ledney]

Rates tend to fall at the beginning of the month, because a lot of repayments come in, hopefully a lot of the extra funds will get used up over the bank holiday weekend.

[propman]

The best we can hope for is a bit of a rollercoaster with rates rising towards the end of the bank holiday then falling as the zapper gets to work and the final early month payments come in Wednesday. Usually Thursday/Friday also sees an influx from people topping up for the weekend, so, other than the weekend fluctuations, I wouldn't expect reasonable rates until the middle of the week after next.

JMHO

- PM

[terry2]

Ledney, on 05 May 2012 - 11:51, said:

Rates tend to fall at the beginning of the month, because a lot of repayments come in, hopefully a lot of the extra funds will get used up over the bank holiday weekend.

Well, funds get used up over a normal weekend, but I've found that less money goes out over a bank holiday weekend even though it is longer.  I assume that most people have more important things to do at a bank holiday than look for loans. <boo-hoo>

[kcrane]

figures18, on 05 May 2012 - 08:34, said:

I'm not too hot on aggregate supply but we do only have around £4.6mil available on the supply side with £11 mil demand over the past 7 days.  Shouldn't be a problem if demand remains constant.

Ah, I am missing something then. I simply looked at the money available in the charts at the bottom of the dashboard and added it up. I got to around £25m. You have a number closer to £5m and you know Zopa far better than I do, where have I gone wrong?

[marshall2k]

Money can be on offer in different markets at the same time so could be counting the same cash 10 times!
Eljay's excellent charts displays all sorts of data including demand and available funds.

[figures18]

kcrane, on 06 May 2012 - 08:27, said:

Ah, I am missing something then

If Elljay's charts make your eyes boggle, Meet Dave and check the Overview tab for the amount of money on offer.  Or at the bottom of the dashboard when you're logged in  

[blackburne]

figures18, on 06 May 2012 - 09:54, said:

If Elljay's charts make your eyes boggle, Meet Dave and check the Overview tab for the amount of money on offer.  Or at the bottom of the dashboard when you're logged in  

I've never noticed before, but the Overview tab gives a slightly different figure to the Lender Statistics. Same ball-park, but I wonder why the difference?  Maybe something to do with loans in processing?

[MikeS1531]

blackburne, on 06 May 2012 - 18:54, said:

I've never noticed before, but the Overview tab gives a slightly different figure to the Lender Statistics. Same ball-park, but I wonder why the difference?  Maybe something to do with loans in processing?

Maybe slightly different timing of when the data is captured?