This post is also available in: Deutsch (German)
Recently Saving Stream announced a change of their rules. Further the second default was processed without any shortcoming for investors. Let’s take one thing at a time:
Purchases without funds on account now only possible on primary market
Saving Stream offered through the INPL system (invest now pay later) a possiblity to invest without even having sufficient or any funds on the account. This has come to an end, at least on the secondary market, where loans only can be bought, if the investor’s account is sufficiently funded. The primary market (pipeline loans) is not affected by this change of rules. One can still subscribe for the desired amount in new loans and gets the assignment (or even partially, depending on the demand). Afterwards you still have 48 hours time to fund your account, as it used to be. This may be a little bit annoying for investors, but this step seems quite logical as you should only be able to buy something (and get interest) if you have the funds available. From Saving Stream’s viewpoint I can fully understand this measure.
Some new notations and their functionality
On the secondary market you can see on the rearmost column the interest status, in this case it is IOA (see picture below):
IOA (interest on account): Interest is paid in advance and will be credited to the investor’s account on the first day of the month. Everything is okay here.
SBL (serviced by Lendy): Saving Streams platform operator is Lendy ltd. During this status the interest is being serviced by Lendy. The borrower is delayed 1 to 90 days. This does not mean that something bad is around the corner, but it might be an indication that not all will go as planned.
IA (interest accruing): Interest is still accruing, but not credited on the investor’s account anymore. This happens if a loan is late 91 to 180 days. Again, this does not mean that the borrower does not pay in the end, but it might be an even stronger indication that something might go southward.
DEF (default): Loans which are overdue for more then 180 days are considered as a default. These loans can still be sold, but are placed within the default tab and therefor no longer visible on the secondary market.
These change of rules has lead that 3 loans (PBL074, PBL075 & PBL081) als have been marked as defaults. Now we have a clear understanding of which loans on Saving Stream are marked as default.
PBL020 – default was settled
It has took a while, but in the end the loans was processed and all investors have received their capital plus interest. So, as to date no investor has ever lost a single penny by investing with Saving Stream. The downside is, that the provision fund has covered a lot for investors in this default and is now low on money. So maybe with the next default, investors might suffer some losses. So look closely in which loans you are investing and monitor your portfolio.
If you would like to give Saving Stream a try, then register here. You can for example use Currencyfair for the money transfer and currency exchange and get a 30 Euro bonus in doing so (if you use the previous currencyfair link and transfer more then 400 Euro or the equivalent in any other currency).