hazellend
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Post by hazellend on Sept 7, 2018 9:18:31 GMT
Yes, I agree with elliotm's evaluation, but I have still taken a bite of this knowing that I am relying on liquidity to reduce risk. I am unlikely to hold this for more than a year. Ablrate have presumably been looking at 107 for some time, since the rainmaker loan is 108, and I guess that the assessment will have required sufficient working capital up front to give the business some time to develop its profitability (though 97% occupancy looks rather optimistic). I regard the security on 108 as diaphanous, but the amount of cash lent provides ample working capital. The first serious loss will hurt the SM. The connectedness of some loans is both a strength and a weakness. With 107 and 108 we do see Ablrate working hard to bring us different opportunities with new stand-alone borrowers, and giving us plenty of information. But we must understand that as the number of such loans increases, there must be some losses. It is the nature of the beast.
Definitely losses will occur. Equities are so much simpler, I just dump all my investment into one ETF (Vanguard all world) then sit back and do nothing It is tempting to overweight on some P2P Loans but staying diversified is paramount. I’m < 2% per loan for my max investment now. Unfortunately have 6 figs in Col though...
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gustapher
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Post by gustapher on Sept 7, 2018 9:28:34 GMT
I regard the security on 108 as diaphanous, but the amount of cash lent provides ample working capital.
Props for teaching me a new word - "diaphanous" - love it.
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sarahcount
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Post by sarahcount on Sept 7, 2018 9:30:35 GMT
Loan now fully funded.
I have taken a small punt despite my better judgment.
Everything about the loan rang alarm bells.
If this was on FS I would have kept on walking. It was only that ABL put up the loan that made me take a small slice but don't plan to hang around with it for long.
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SteveT
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Post by SteveT on Sept 7, 2018 9:40:18 GMT
Well done to ablrate for getting the Bid Limit just right on this one (filled in about 20 hours)
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sarahcount
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Post by sarahcount on Sept 7, 2018 9:55:26 GMT
hazellend said : "It is tempting to overweight on some P2P Loans but staying diversified is paramount. I’m < 2% per loan for my max investment now. Unfortunately have 6 figs in Col though..."
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I've never really bought into diversification. I'd much rather pick the better sound loans and avoid the riskier ones. For all FS's flaws they still have some of the safest loans in the industry if you know where to look. But I wouldn't want to have an equal amount in each loan over there that's for sure. Sticking with the ones that don't keep me awake at night is my approach.
I'm trying to avoid doing too much flipping these days but do feel comfortable with the ABL SM and the fact that they have some loans repaying which will put investors in funds.
Certainly not a fan of the care home industry, the way the security was valued as a going concern rather than bricks and mortar. Using industry averages to assess possible profits rather than actual prior years or the borrowers ability to generate the funds to pay off these loans in such a short period.
There's been some comment about this loan smelling a bit funny and I do tend to agree that it's not just Middlesbrough's famed sulphurous odour that has reached my nostrils.
Hopefully all will go well with this loan for those flipping out and those holding for longer.
I do feel though that diversification between platforms is very important. I'm also caught up in COL and feel very aggrieved that spending time and effort getting into the bling and the Bolton first charge appears to have counted for nothing. Then I see people on here constantly spreading fear about platforms failing. Holding them to account is one thing but trying to drag them down is quite another.
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blender
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Post by blender on Sept 7, 2018 10:21:10 GMT
sarahcount No problems with your post content except that it quotes something from me which is very far from what I might have posted. Would you mind trying to fix it please? It could seriously damage my proud reputation as a diversity criminal, and a lucky b*st*rd who had not got around to putting anything in COL before the disaster there (think Col as the Titanic on a maiden voyage and the FCA as the waiting iceberg).
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sarahcount
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Post by sarahcount on Sept 7, 2018 10:44:35 GMT
Managed to edit quote after several attempts of my updates not reading the way I set them.
Don't want to spoil anyone's proud and well earned reputation.
Strangely I had the Titanic in my mind when I wrote about COLL. I agree about the maiden voyage and the iceberg. I was on deck arranging my bling and first charge deckchairs thinking how tidy they looked when disaster struck.
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blender
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Post by blender on Sept 7, 2018 11:50:28 GMT
Thanks sarahcount . Reputation restored. The trouble with the FCA iceberg is that the visible part is only 10% of the whole mass. It's what you can't see that you have to watch out for. Will Coll's heart go on? Or is it being stuffed and roasted as a tastly treat for someone else?
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sapphire
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Post by sapphire on Sept 7, 2018 12:04:10 GMT
ablrate Having regard to the recent posts, may I be a bit bold and suggest that you might wish to review and reconsider your approach in representing this is as a 64% LTV loan in your borrowing proposal, on the basis of using the £2.8 valuation. Whilst this may be technically and legally OK at this point in time, I think if things were to go wrong you may be liable to be held to account for a possible misrepresentation by lenders who may suffer a loss. I am not a 'legal' person and I guess you may have already taken legal advice, but from a common sense, and indeed an ethical perspective, I think the current approach in your borrowing proposal in representing this as a 64% LTV loan just doesn't seem right. So far I have had high regard and indeed currently have a substantial amount invested in your platform and do sincerely wish that you have a long and successful future.
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KoR_Wraith
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Post by KoR_Wraith on Sept 7, 2018 12:45:23 GMT
I've given this one a miss for the same concerns raised in previous posts.
I'm surprised how many people are willing to put so much faith in a platform's judgement and secondary market liquidity to justify their lending decision. History does not suggest this to be an ideal strategy.
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elliotn
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Post by elliotn on Sept 7, 2018 14:08:04 GMT
Managed to edit quote after several attempts of my updates not reading the way I set them.
Don't want to spoil anyone's proud and well earned reputation.
Strangely I had the Titanic in my mind when I wrote about COLL. I agree about the maiden voyage and the iceberg. I was on deck arranging my bling and first charge deckchairs thinking how tidy they looked when disaster struck. I had just neatly folded up my deckchair from Bolton. And I stood there, manstanding, surveying all the cash and bling around me. Then a hulking, fat ‘berg on my blind side*. * Bl**dy ‘old’ age and bifocals!
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Post by df on Sept 7, 2018 16:03:50 GMT
I've given this one a miss for the same concerns raised in previous posts. I'm surprised how many people are willing to put so much faith in a platform's judgement and secondary market liquidity to justify their lending decision. History does not suggest this to be an ideal strategy. I'm not sure if there is a common "ideal strategy". I take into consideration my trust in platform and SM liquidity when making decisions as well as loan details, so I have different strategies for different platforms. Presumably, for most investors the decision is whether to invest in a particular loan or not. I reject some offerings, but do invest in majority of available loans - key decision for me is how much funds I'm prepared to commit to a particular loan and my participation in each is usually modest.
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blender
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Post by blender on Sept 27, 2018 10:15:31 GMT
Care Assistant: "Time to wake up now, Mr Ablrate. You forgot to draw this down before falling asleep in your chair, and it's not going to draw itself down now is it, dear?"
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KoR_Wraith
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Post by KoR_Wraith on Jan 21, 2019 21:54:00 GMT
An inspection by the Care Quality Commission was carried out in August last year and the resultant report published in October. It's available to view on the Care Quality Commission website by searching the name of the care home. I don't have anything invested in this loan but it may be of interest to those that do.
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