Grupeer Suspends Payments to Investors(grupeer.com) |
Grupeer Suspends Payments to Investors(grupeer.com) |
If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
doesn't sound that way https://www.grupeer.com/why-grupeer
"Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk."
and on the same page below:
"Secondly, investments are secured with BuyBack Guarantee. This means that if the borrower goes bust, our partner- the loan originator is required to buyback the defaulted loan and insure the repayment of the principal and interest in full amount."
That's classic ponzi language.
Upside and risk go hand in hand. You can't sustainably produce one without the other, else everyone would be infinitely wealthy.
That’ll end well.
Looks like a brother system team that worked in construction and moved into lending:
They're going to do everything they can to weasel the language into making it sound like it isn't, when it really is.
Sounds like loan repayments (ie principal + interest) are suspended indefinitely. This is the risk you take when you are expecting a 10+% return on property dev and payday loan investments.
- 30% household unemployment
- 90+ day shutdown of most retail / service businesses
- Implicit Mortgage and Rent holidays (no enforcement)
- Other household assets are tanking (stocks, real estate)
- Small business restart will be brutal, since the personal balance sheets & credit of owners are getting devastated
So... payment on unsecured loans... bwhahahahah. Speaking as a former banker, I'm guessing what - a 40% delinquency rate during Q2 and part of Q3? We're not just talking about the unemployed people - others have hours cut, money lost on investments, business slowdowns, etc.
Not to mention most of the population probably won't give a damm about you trashing their credit score at this point. What's the point? It's all crap now...
Oh wait... I haven't gotten to the best part. If a loan is 60 days delinquent, these guys have to buy it back per the terms of their deal. That's why they froze this thing...
At this point, it is a race between their cash reserves (what % they held back to support buybacks) and the unknown peak of a massive wave of 60 day delinquencies....
You're picturing it "too honest": there are allegations of misconduct which I am afraid (given the bad quality of the recent official posts) might be true, see for example:
https://kristapsmors.substack.com/p/covid-19-first-p2p-victi...
Are they saying they're just suspending interest payments to investors, or have they actually disappeared their investors' capital indefinitely?
Trying to fund a guarantee with some clever trading strategy usually comes apart in the next downturn. See the history of "portfolio insurance".[1]