des
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Post by des on Feb 16, 2018 16:32:14 GMT
Together with the lack of a minimum interest period, it rather suggests that you are right to think that this borrower will wish to refinance asap. I read the high rate as a short term loan. It may well be an SPL in a few months, but let us not roll over too easily on rates. Starting at 24%pa plus 2% up front, the current risk does justify a single % figure for us, any time soon. ? Term: 48 months (24 months minimum term)
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blender
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Post by blender on Feb 16, 2018 16:44:13 GMT
Together with the lack of a minimum interest period, it rather suggests that you are right to think that this borrower will wish to refinance asap. I read the high rate as a short term loan. It may well be an SPL in a few months, but let us not roll over too easily on rates. Starting at 24%pa plus 2% up front, the current risk does justify a single % figure for us, any time soon. ? Term: 48 months (24 months minimum term) Many thanks, Des. It does say that in the key terms, p3, but there is nothing in the Loan Terms, Special Conditions. I think there should be if it applies. I am surprised at 24months, especially as this is a different borrower. I have five figures in this group and do consider it a good business prospect. So I am not knocking it.
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yangmills
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Post by yangmills on Feb 18, 2018 18:13:31 GMT
Don't give them ideas Elliotm. This current offer pays us 13% and Ablrate 11% pa as fees. So I look forward to an SPL where Ablrate takes 4% and we get 20%. (expensive money) Wow, best risk indicator right there! (I do sometimes skim the loan agreement but always looks like a blank template and have been too embarassed to ask as Steve dishes the dirt - might pm rose to see if she'll ask). Isn't anyone modestly concerned that the borrower needs to pay 24% running (+2% fees) but the investors only gets 13% i.e. just 54% participation. I'm pretty happy with the idea the P2P isn't exactly efficient. Nonetheless, the borrower rate is probably somewhat indicative of credit risk. A 4-year amortizer, with a projection curve at 13% and a discount curve at 24% is worth just 84.5% of par, whilst lenders pay par for it. People complain about paying active funds a 1.5% management fee but a 11% spread (or 15.5% upfront) on a loan is gobbled up. P2P really is a license to print money ... for the platforms at least.
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IFISAcava
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Post by IFISAcava on Feb 18, 2018 18:58:09 GMT
Wow, best risk indicator right there! (I do sometimes skim the loan agreement but always looks like a blank template and have been too embarassed to ask as Steve dishes the dirt - might pm rose to see if she'll ask). Isn't anyone modestly concerned that the borrower needs to pay 24% running (+2% fees) but the investors only gets 13% i.e. just 54% participation. I'm pretty happy with the idea the P2P isn't exactly efficient. Nonetheless, the borrower rate is probably somewhat indicative of credit risk. A 4-year amortizer, with a projection curve at 13% and a discount curve at 24% is worth just 84.5% of par, whilst lenders pay par for it. People complain about paying active funds a 1.5% management fee but a 11% spread (or 15.5% upfront) on a loan is gobbled up. P2P really is a license to print money ... for the platforms at least. Agreed, that a big platform margin. Anyone know off hand (without having to delve into all the documentation) how it compares to other loans on ABL?
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poppyland
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Post by poppyland on Mar 21, 2018 17:11:57 GMT
Any ideas why so much is for sale at 100% on the SM at the moment?
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ptr120
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Post by ptr120 on Mar 21, 2018 17:23:04 GMT
Any ideas why so much is for sale at 100% on the SM at the moment? Perhaps because (yet another) loan to the same borrower is due on the platform tomorrow? I do wonder why the same borrower returns time and time again (in fairly short succession) for additional finance on assets already owned? IMO recent borrowing proposals haven't been as clear as they could be in terms of what the borrower actually intends to do with the funds. Considering his alleged significant net worth, I wonder why he needs the funds, and what the strategy is in terms of loading the various group companies with debt. It also brings some concentration risk to the platform too.
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IFISAcava
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Post by IFISAcava on Mar 21, 2018 17:36:00 GMT
Any ideas why so much is for sale at 100% on the SM at the moment? new loans on the way?
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hantsowl
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Post by hantsowl on Mar 21, 2018 17:54:29 GMT
Any ideas why so much is for sale at 100% on the SM at the moment? new loans on the way? Did you not get the email yesterday? ........ The pipeline of deals we setout recently are all progressing well and I am pleased to inform you that we plan to launch the first of these, a self-select loan onto the platform early afternoon on Thursday 22 March. We also anticipate to have a second loan launch early the following week. Hopefully these two loans will give interested lenders an opportunity to take up any ISA allowance so far not used before the deadline of the 5th April. Thursday 22 March 2018 Loan Launch Details: Borrower: F****** P********* L****** Amount: £725,000 Term: 48 months (12 months minimum term) Rate: 13% - Amortising Security: Chattels Mortgage over 2x lodge properties, 1st Charge over a property (pub freehold), Debenture over the operating companies of the lodges & pub businesses, Cross Corporate Guarantee & Director PG. Instant Returns: Enabled Loan Launch: Between 1pm - 3pm 22 March 2018 Loan Live: 8pm 22 March 2018 The loan will be in a view only state until 8pm that evening. The Borrowing Proposal for this loan will be provided alongside separate independent valuation reports of all the prinicipal security assets.
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oldgrumpy
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Post by oldgrumpy on Mar 21, 2018 18:03:19 GMT
hantsowlAre you ready for your slaponthewrist?
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hantsowl
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Post by hantsowl on Mar 21, 2018 18:14:30 GMT
Do please tell....
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marka
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Post by marka on Mar 21, 2018 18:18:53 GMT
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blender
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Post by blender on Mar 21, 2018 18:20:36 GMT
Owls don't have wrists to slap. Perhaps a poke in the eye?
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hantsowl
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Post by hantsowl on Mar 21, 2018 18:21:04 GMT
I thought that was needed for individuals rather than companies. My bad. I will correct.
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hantsowl
Member of DD Central
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Post by hantsowl on Mar 21, 2018 18:39:07 GMT
Owls don't have wrists to slap. Perhaps a poke in the eye? Careful....Owls have been known to eat lizards....
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Post by GSV3MIaC on Mar 21, 2018 18:47:41 GMT
Thanks for fixing it, saves the admin team some work. The rules say borrowers or assets .. anything google can crawl back to identify someone(s).
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