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Post by nellerdk on Jan 9, 2018 19:14:29 GMT
Have any of you ever sold red loans on the secondary market?
if so, how much discount did you have to give the buyer?
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Post by coolrunning on Jan 9, 2018 20:53:33 GMT
Have any of you ever sold red loans on the secondary market? if so, how much discount did you have to give the buyer? It varies. The market changes rapidly with time. If Bondora has just published an upbeat blog about how good they are at getting recoveries, lots of buyers appear. Then later things drift back to normal. Best to look at the actual events as they happen in the 2nd mkt. Discount for Est < Fin < Sp. Writeoffs naturally need much bigger discounts.
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Post by nellerdk on Jan 9, 2018 21:06:37 GMT
I am looking for specific percentages here, since I have red loans I want to sell :-)
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Post by coolrunning on Jan 9, 2018 21:43:03 GMT
I am looking for specific percentages here, since I have red loans I want to sell :-) I will propose almost the same answer as before. Look at the 2mk, find the biggest discount offering similar to the one you want to sell, and make 1 or 2% bigger discount. Similar means country, grade, status etc.
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fric
Member of DD Central
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Post by fric on Jan 10, 2018 7:38:34 GMT
It highly depends on whether you actually receive payments from them while in default or last payment was a year or two ago. But for the really bad cases with barely any results from debt recovery (or none at all) be expecting to sell them with at least 80% discount or more (selling for 20% or less of the outstanding principal). For loans that actually get some recoveries it will be much better, but can't say any real figures though.
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miso
Posts: 25
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Post by miso on Jan 10, 2018 10:46:59 GMT
I have Spanish loans on SM with payment history which are not being sold even at 90% discount, the same with dozens of Estonian loans offered at -75%+ . You can just start at -60% and readjust unsold loans after week or so until you reach your own mental limit  |
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Post by coolrunning on Jan 10, 2018 11:11:47 GMT
I have Spanish loans on SM with payment history which are not being sold even at 90% discount, the same with dozens of Estonian loans offered at -75%+ . You can just start at -60% and readjust unsold loans after week or so until you reach your own mental limit Spanish defs are clearly the hardest to sell. Est you can try to sell at 80%, Fin around 85% and if nothing goes, increase the discount. But the market does change over time as I noted in my earlier post.
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fric
Member of DD Central
Posts: 199
Likes: 79
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Post by fric on Jan 10, 2018 11:37:48 GMT
I honestly don't see much point in selling off those really bad ones that doesn't have any recovery at all at lets say -90%. Sell out 2k eur principal for 200 eur... meh... Yeah, sure, 200 is still money, don't get me wrong, but the only reason to do so would be to cash out completely and to remove bondora from your history. Its not like I can invest 200 eur somewhere else and gain some significant return. Might as well hold on to them for some time. Some recoveries are actually starting to go up for me (not that I would ever actually buy defaulted loans)...
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parisingoc
Member of DD Central
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Post by parisingoc on Jan 12, 2018 18:37:59 GMT
I'm with most other comments.
I have been selling my stock of over 1000 Defaulted loan parts over the last 2+ years and have now got rid of most of them (850+). My average discount across the patch is -78%, but I reckon on SK being -95% to move, ES -85% to -90%, FI -75% to -85% and EE -50% to -75%. Having said that, I have sold some EE ones at -91% in the last 5 days. I started with Isepankur (as was) in 2013 with a definitive target - to make as much as possible and exit by August 2018. I am therefore now more interested in what I can get out in the next 7 months than the long-term value of holding on.
Having said all that, I am now selling the really old stuff and almost always realise a net profit over the lifetime of the loan, even at a -70% discount!
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Post by Jonas Hendrickx on Mar 9, 2018 7:39:33 GMT
I believe your best chance is to look at the average recovery rate of the platform before selling them at a discount. Set your discount accordingly to the average recovery rate or keep them and pray they recover.
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Post by rahafoorum on Mar 11, 2018 13:19:38 GMT
I believe your best chance is to look at the average recovery rate of the platform before selling them at a discount. Set your discount accordingly to the average recovery rate or keep them and pray they recover. Average is relatively meaningless in this case because it includes all countries and all ratings. Those have very large differences in recoveries.
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Post by theitalianleathersof on Nov 28, 2019 17:22:07 GMT
I sold very bad loans, that never paid interest nor recovery, for between -60% and -70%. As someone replied earlier, it really depends on the market status, in the past I think Bondora was 'passing' the secondary market sales to new investors in their automatic portfolio, now (unfortunately for me but better for investors) they stopped. Recently it has been really hard to sell those loans. theitalianleathersofa.com |
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