Author Topic: Low dollar notes do not show up on Folio  (Read 8417 times)

core

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Re: Low dollar notes do not show up on Folio
« Reply #15 on: September 15, 2013, 05:54:40 PM »
There's still a chance that this "change" is unintentional, no?  It doesn't make much sense to exclude sub $5 P&I notes unless they did it because they wanted greater than 5 cents for every transaction.

Sure, it's possible this is all just a huge mistake.  But the timing is too coincidental given their recent kinder, gentler Folio disclaimer.  This could have been some kind of knee jerk reaction to something and they missed by a mile.  And if they were going for a 5 cent minimum commission then they hit the wrong column... should have been asking price rather than par value.

"Then they should have filtered out negative YTM instead of hiding all small notes.  It makes no sense whatsoever."

I totally agree.  That's the smart and fair way.

It would have made at least some sense, but I can't say I would have really liked to see that either.  What happened to the guy who said if you need a lawyer to understand this stuff you shouldn't be trading?  It someone wants to be stupid and give away some of their money, I feel it is our duty as Americans to give them ample opportunities to do so.  If there is no chance of failure then success is meaningless.

And on that topic, it is far better for a person to play around and learn their lessons, see how things work on $2 notes vs $25 ones.  They just made getting your feet wet a whole lot harder on the account balance.  So much for the kinder gentler Folio and 1000 points of light.

Somebody should find out what their plans for Folio are.
Core.....They all seem to know you pretty well.  Pour yourself a double scotch and give 'em a warm-and-fuzzy call!  (Just don't put the bottle away).

Yes, "somebody" should.  But there isn't enough scotch in a bottle to make me want to dial that number ever again.  They would likely just tell me that Stephanie is behind this fiendish scheme and that she's not available.  I don't think a company that implements things in such a sneaky manner is going to tell anyone what they're really up to with a simple phone call?  Besides, it seems much more effective to incite riots.  :)

Fred

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Re: Low dollar notes do not show up on Folio
« Reply #16 on: September 15, 2013, 11:15:02 PM »
Then they should have filtered out negative YTM .....

Although this sounds like a good idea, I don't see this being implemented anytime soon given the recent "Trading Agreement" that specifically warns about negative YTM.  The new agreement essentially says "we are going to allow negative YTM, so beware."

core

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Re: Low dollar notes do not show up on Folio
« Reply #17 on: September 18, 2013, 06:57:27 AM »
It has now been "fixed" and listings seem to be back to normal... for now. 

These things do not break on their own in such a specfic manner so we can assume they were trying to do something and botched it.  I wonder what that something was, and how long it will be before we see attempt #2.

Randawl

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Re: Low dollar notes do not show up on Folio
« Reply #18 on: September 18, 2013, 03:33:41 PM »
Things are back to "normal" on my front as well and I'm glad it seems on the surface that this was a mistake.  Maybe they intended to put a floor on sale price?  Tiny chance of this as it would destroy sales of extremely late and collection notes.  Not that Folio would care about that.  It's in their best interest to maximize turnover and sale price.

Core is right and I hope attempt #2 leaves our negative YTM alone!  As Fred mentioned, it doesn't make sense for them to put forth a notice to the lemmings to agree they read the warning and turn around and do something like that.  Could this all be part of some grander scheme to "clean up" Folio and prevent the sale of highly defunct and negative YTM notes?
« Last Edit: September 18, 2013, 03:36:48 PM by Randawl »

core

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Re: Low dollar notes do not show up on Folio
« Reply #19 on: September 18, 2013, 06:23:29 PM »
Could this all be part of some grander scheme to "clean up" Folio and prevent the sale of highly defunct and negative YTM notes?

I don't know.  The only thing we can know with certainty is that they will screw up whatever they do try.

If negative YTM notes are to remain fair game, then I really am clueless about what they might try next.  If I was a betting man (and I am) I would bet that their grander scheme is to change things in such a way that it is impossible for anyone to do anything stupid.  I am not sure how one would accomplish that.  I would not like to see them try.

Prosper is the ultimate in crappy trading experiences.  They do not allow you to sell a note for less than a 15% discount (or something like that; I'm not sure of the formula).  Keep in mind they do not allow the selling of notes in late status.  But they also do not allow bidders to bid into negative YTM territory.  So as notes mature the price goes into a "coffin corner", to borrow an aviation term.  And eventually beyond, where it is actually impossible to bid on a note that was just posted for auction. 

Once "They" start telling you how much you have to ask for your notes, and how much you cannot ask, that might as well be the end of the whole works.  When Bernanke puts the brakes on, these notes aren't going to sell for nearly as much and any artificial floor LC puts in place is going to royally put the hurt on people.

LendingClub, let the market work and stay out of it.