keith
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Post by keith on Nov 2, 2017 12:26:24 GMT
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oik
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Post by oik on Nov 2, 2017 14:27:46 GMT
Arguably so. It certainly seems to be another change to the PF that complicates comparing the current value, now showing a coverage down to 111%, to that of previous years.
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jlend
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Post by jlend on Nov 2, 2017 16:15:30 GMT
I do like the way Ratesetter works at the moment with a clean loan book on the markets and defaulted loans held by the provision fund to handle as they wish.
However I can see this is potentially problematic for secured loans such as property loans. The provision fund could take a large short to medium term hit if a couple of large asset backed loans defaulted. It does beg the question about whether RS will expand this to other asset backed loans they have in the future.
I see they are not offering a free sell out for this change.
It would have been good if they had made a comment about the current low coverage ratio and what actions they have taken to bring it back within their published target range.
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