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peer to peer lending

Still relatively unknown, but peer to peer lending (eg. Zopa) is likely to become a hot topic anytime soon. But has anyone mentioned that typical rates are not especially attractive, around 5% for the least risky borrowers for example (not sure if it includes service charges too)--and those are unsecured loans. Savings accounts offering over 4% aren't especially hard to find, and your money can be accessed much more quickly (Zopa loans usually run a few years--although you do have access to repaid parts of the loan as soon as it's paid). Perhaps to make a comparison, what rates do you get from the better corporate bonds?

Seb

Reply to
silicono2
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its hard to see why it would become "a hot topic anytime soon" in that case.

Reply to
Tumbleweed

In message , " snipped-for-privacy@yahoo.com" writes

Investment grade bonds about 5-5.5%, but the underlying value will vary in a different way to the ZOPA type of thing so from a liquidity point of view they are very similar. From an investors point of view I think it would attract those prepared to take a greater risk in order to get a better return.

What worries me most is that the dont know the difference between Principle and Principal.

Reply to
John Boyle

In message , John Boyle writes

Sorry, typo. Should read 'dis-similar'.

Reply to
John Boyle

Of course, exchange-traded bonds can be sold before they mature and their yield varies--but I guess it shows that investment bonds aren't far better than savings accounts, and once you add the transaction costs...

Seb

Reply to
silicono2

In message , " snipped-for-privacy@yahoo.com" writes

Not sure what 'investment bonds' have to do with this, they are life assurance contracts, but if you meant Investment Grade Bonds then their primary attraction to some people is the Fixed Interest they provide until maturity at which time a known capital loss or gain is incurred. They can then, sometimes, seem quite attractive but I think Investment Grade nods really only have an attraction to fund managers rather than individuals.

Reply to
John Boyle

They are, for some individuals, an interesting hedge against falling interest rates.

When Interest rates fall, bond prices tend to rise.

Also, so-called 'junk-bonds' i.e. bonds of companies where there is some greater degree of risk that they may not get paid (such as Eurotunnel) can offer high interest rates (and a high risk of loss of capital).

So individuals who have moved on from trading in individual stocks....

Next week - pork belly futures....

Reply to
Miss L. Toe

I do hope that this isn't a spelling lesson.

tim

Reply to
tim (back at home)

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