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Post by elephantrosie on Nov 21, 2017 21:48:36 GMT
I am trying to get some loans off SM, but am avoiding loans with CB previously due to risk of illiquidity.
Collateral has removed the statements under loan details about previous CB.
could we list all loans with CB here please?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 21, 2017 22:09:07 GMT
BL74-77
BL51-54
BL48
BL46
BL26
As these are DL they will become more liquid as development tranches launch because the LTV on the priority first loan will decrease.
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hazellend
Member of DD Central
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Post by hazellend on Nov 21, 2017 22:12:51 GMT
CB doesn’t always mean illiquidity. Also, the CB loans usually rank above the other tranches so are safer.
IMO liquidity is overrated
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withnell
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Post by withnell on Nov 22, 2017 7:29:20 GMT
Also while cashback might be an indication that loans will be illiquid for initial trading, after the bed-in period where the cashback hunters sell out the loans should trade as normal.
A much clearer indication is look at how much is available - look for over 10k on the market for a significant time without much investor activity, that's a much better sign of illiquidity
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elliotn
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Post by elliotn on Nov 22, 2017 7:57:30 GMT
I am trying to get some loans off SM, but am avoiding loans with CB previously due to risk of illiquidity. Collateral has removed the statements under loan details about previous CB. could we list all loans with CB here please? Why? Look at the SM, once the flip has been bought by longer term investors why would you expect liquidity to be different from other loans? Do you see much of BL26 available which was the first of the major, recent CB loans? You need to look at exposure to borrower, quality of the security, viability and updates of the development, recent trading volume, tranche priority (ie the CB loan may actually be the SAFEST in recovery) etc ahead of whether a loan happened to have had a CB element to it some months back.
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