stevio
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Post by stevio on Jan 20, 2016 21:59:23 GMT
I don't know the history of this one, so if anyone could fill me in that would be appreciated
Just wondered what peoples thoughts are on this loan?
Currently offering looks like a second charge, looks like a £600k first charge and total of £600k second charge, 37% LTV
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webwiz
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Post by webwiz on Jan 20, 2016 22:59:48 GMT
This loan will probably be popular but I personally am not investing. The problem for me is that FS give no details on what the loan is for or how it will be repaid. I would hate to be in it if it defaulted and FS had to foreclose and dispose of the asset, so even though that is unlikely to happen it is not for me. I prefer real estate. But that's just my opinion, you have to make up your own mind.
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mikes1531
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Post by mikes1531 on Jan 21, 2016 2:02:40 GMT
This loan will probably be popular... I expect that to be an understatement. The previous renewal of a tranche of this loan (Monday) was snapped up in about a minute.
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stevio
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Post by stevio on Jan 21, 2016 14:56:36 GMT
Is there still a 1st charge loan, as the link to it shows it has ended, but was that maybe rolled over?
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ilmoro
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'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 Jan 21, 2016 15:11:23 GMT
Is there still a 1st charge loan, as the link to it shows it has ended, but was that maybe rolled over? Yes 1378461147, its got a different name to confuse you £525k fundingsecure Is there any chance that you could agree a standard description for loans taken against the same asset so that lenders can easily identify them eg Italian Books, Italian Library, Italian Books Collection, Antique Books have all been used for these loans Similarly if its similar loans to the same borrower perhaps that could also have the same nomenclature eg Trains, Railwayana, Railway Coaches, etc have all been used at various times for that borrower's various loans. It is very hard to keep track of some of these loans, not helped by regular spelling errors (Magna Carter, Mayalya Garnet) and inconsistencies (Microsculptures, Micro-sculptures) which hamper searching Ideally, each loan should list the other relevant active loans but there isnt any consistency in this and for those that are, the linked loans arent updated when linked loans rollover. It would alos be helpful if there was a simple indication in the loan title as to what charge, tranche it was eg Italian Library 2C, T2. I feel all these point are quite minor to action but would be very beneficial to lenders in managing their own loan books.
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mikes1531
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Post by mikes1531 on Jan 21, 2016 15:22:03 GMT
This loan will probably be popular... I expect that to be an understatement. The previous renewal of a tranche of this loan (Monday) was snapped up in about a minute. This one started with £25-30k available from previous lenders who opted out of the renewal... and was gone within seconds.
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Post by brendonl on Feb 12, 2016 9:12:33 GMT
Looking around the Secondary Market, there is an awful lot of the various loans of Italian Books/Italian library etc for sale. So much so that it seems as though some have insider information that there is issues here with the assets. Does anyone know anything about this?
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SteveT
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Post by SteveT on Feb 12, 2016 10:31:44 GMT
Looking around the Secondary Market, there is an awful lot of the various loans of Italian Books/Italian library etc for sale. So much so that it seems as though some have insider information that there is issues here with the assets. Does anyone know anything about this? There has always been a lot of these loans offered on the SM, mainly because: A) it's a very large loan in total (£1.125m over about 6 tranches) and a lot of lenders have large chunks of it B) it's all at 13% so more recent renewals can be listed at 1% premium and tranches approaching renewal offer a big income tax-saving opportunity if lenders can sell at par as they near the last 30 days C) it's been renewed multiple times and the security is "unusual" so, although the LTV is low, no-one really wants to get dragged into a long-running auction process if the borrower was ever unable to repay.
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Post by brendonl on Feb 12, 2016 11:13:20 GMT
They are all good comments. Thanks for that.
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xp67
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Post by xp67 on Feb 12, 2016 11:32:49 GMT
It was me selling.
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SteveT
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Post by SteveT on Feb 12, 2016 11:40:12 GMT
At 1% discount?? Why?! Or was that another lender trying to get in front of you?
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kermie
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Post by kermie on Feb 12, 2016 11:43:57 GMT
They are all good comments. Thanks for that. There is some at 1% discount available now - effective rate over 19%. (not me selling) *not a recommendation - DYOR etc. (eg. work out the tax implications first) edit: gone already! can't say I didn't try... This really highlights the weirdness of the FS secondary market, given that even at that level it's likely that a very poor return will be made for 40% tax payers. Rough guess of how this works from purchasers perspective after £100 principal is sold at 1% discount at the end of 5 months: £100 principal. £5 accrued gross interest at purchase (5 months @ 1% per month of £100) £1 discount on purchase of principal Purchase price is £100+5-1=£104 Return at 6 months = £106 Tax due = 40% of £6 = £2.40 Nett return from purchase = £106 - 104 - 2.40 = £-0.40p = 0.3% loss. Effective return advertised is (£106 - £104 = £2 over just one month). £2/month is £24 p.a. which is about 24/104 = 23% gross return! So it is truly shocking that a notional 23% pa return can turn into a 0.3% loss once the inherited tax liability is accounted for.
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xp67
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Post by xp67 on Feb 12, 2016 11:50:25 GMT
At 1% discount?? Why?! Or was that another lender trying to get in front of you? I was testing the waters, to see how quickly a loan with a 1% discount would sell. As the poster above correctly mentions, this situation is of greater benefit to me than being unable to sell the loan and being forced to keep it to term. As mentioned in the SM thread, I am also looking to liquidate a number of my loans over the next few weeks, and by offering a discount I can ensure that this is achieved. I feel that there is limited demand for SM loans right now, due to the large number of high value loans which are currently available and are upcoming. This is evidenced by the few loans with >100 days remaining at 0% premium, which have not sold. By not offering loans at a discount, I would need to wait for these (more attractive loans) to sell first, potentially resulting in unsellable loan parts in a few weeks time. With that being said, I do not intend to offer any further loan parts at a discount unless I am in urgent need of the funds.
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SteveT
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Post by SteveT on Feb 12, 2016 11:56:44 GMT
In my experience, weekends are when SM activity increases markedly. I'm pretty confident that anything listed at par is unlikely to survive the weekend.
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xp67
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Post by xp67 on Feb 12, 2016 11:59:13 GMT
I agree, but there is still £338000 of wind turbines to fund! The sort of people who buy a loan at par with only 45 days left are equally likely to jump on a fresh loan instead.
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