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Post by dan1 on Jan 1, 2018 20:23:35 GMT
On some of the other loans, ablrate have set limits on what the offer price can be set (e.g. an offer on 1000080 is restricted to 95-105 and on 1000040 it is 95-103) but there are no limits (so far) on 1000092. Any idea when and what criteria ablrate use to set the limits? It may be that ablrate has just missed setting the limit so far on this fairly recent loan. Limits on the range of bid/offer prices are imposed to constrain the yield to sensible values. Yields are magnified when they approach their end date, that premium or discount is amortised over a shorter period of time. It's perhaps easiest to see on the FS secondary market, where even with the premium/discount constrained to +/-1% yields can range from 4% to >20%. It may help to think of a loan with a 12% coupon, paying 1% a month. Now, if that loan has 6 months to maturity and you pay a 5% premium then your return will be 1% (or 2% annualised). 1000080 has almost 7 months to run, 1000040 less than 6, hence the constraints. They'll tighten as the loans near maturity, and very near to the end trading will be suspended, probably without warning. 1000092 has several years to run but remember this borrower has redeemed a previous loan early, which just reinforces the warning that if you buy at a premium you risk a real loss. Should you wish to make the most of that ISA allowance then I suggest you stick to the loans with a long time to maturity
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des
Posts: 119
Likes: 78
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Post by des on Feb 23, 2018 8:46:12 GMT
ablrate Is this loan late being paid by the borrower?
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Post by mcpete on Feb 23, 2018 10:54:18 GMT
Guessing this was added after you posted, but there's an admin note now
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Post by ladywhitenap on Feb 23, 2019 12:55:57 GMT
12 months on and the payment is late/missing - something to do with being February?F
LW
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Post by ladywhitenap on Feb 23, 2019 21:25:51 GMT
The February payment has now arrived. LW
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