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Post by alexp2p on May 23, 2019 14:11:43 GMT
What is the opinion of other lenders about the coming loan from ******** Industries Plc?
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kaya
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Post by kaya on May 23, 2019 16:25:05 GMT
Striking. A good match with the other loan. Its got my ear. Logical really.
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IFISAcava
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Post by IFISAcava on May 23, 2019 18:26:07 GMT
Striking. A good match with the other loan. Its got my ear. Logical really. It's a risky enterprise do you mean?
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criston
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Post by criston on May 24, 2019 16:30:12 GMT
Anyone sussed out the security behind this one.
It's the first thing I look for without using a magnifying glass.
£700k is mentioned, which is not much more than the loan.
What is the debenture & guarantee worth?
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Post by elephantrosie on May 26, 2019 20:57:42 GMT
if I can bid for less than 100% value on the old loan, why would I invest in the new loan?
ditto the above comment. 700k for 650k loan?
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kaya
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Post by kaya on Jun 1, 2019 11:54:16 GMT
Fair amount of original loan now available at 97.9%.
I think this company will need to demonstrate some track record (stock market listing, repayments) before there is enough confidence with lenders to support further tranches.
This new loan is going to need a lot of underwriting...
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alanh
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Post by alanh on Jun 1, 2019 13:44:49 GMT
8k offered at 97.9 looks like the underwriters are trying to get rid of this loan before they get lumped into another tranche of the new one. Its pretty obvious that in these situations investors are going to be much more inclined to snap up the existing loan at a discount as opposed to investing in the new one at par. Maybe releasing in smaller tranches would work - the original loan was huge at £1.2m. Contrast this with the patisserie loan which was gone in about 6 hours and is now trading above par in the secondary market.
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nw99
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Post by nw99 on Jun 1, 2019 15:29:29 GMT
There were not any underwriters in the original.
Looks like a small distressed seller
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alanh
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Post by alanh on Jun 1, 2019 15:50:03 GMT
Seems a bit strange to be getting out of 8 grands worth at a loss just as the new loan is launched though don't you think? As for "small" its one of the largest offers I have ever seen on the secondary market. Are there really no underwriters on the first loan?
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SteveT
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Post by SteveT on Jun 1, 2019 16:07:58 GMT
Maybe someone decided that P2P is no longer for them, or stuck rather more than that in this loan and now feels the need to de-risk.
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blender
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Post by blender on Jun 2, 2019 6:25:54 GMT
A number of loans on the SM have been hit by a person or persons selling heavily - as evidenced by the large bid/offer gap remaining. I do not think it is to do with a particular loan. It does not take much selling against bids to have this effect on the SM, say 20k or more. Whether it is someone wishing to get out quick or someone suddenly needing cash, I have no idea. I think it will settle, but we will see.
I suspect that the last £100k of 120 may have gone to underwriters, but under the new arrangements (which we have not seen) we were told that they could not sell below par (for how long?).
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macq
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Post by macq on Jun 2, 2019 9:06:55 GMT
i would say given this loan filling slowly as did the previous property loan that was put on hold(plus the crypto mine falling short) that the problems with certain other platforms recently and some Abl loans running over plus the wider political climate is starting to suggest that Million pound property loans or multiple tranches or even just big values may not fill even on Abl no matter what is and is not on the SM and that's with only a new loan every couple of weeks At One time it seemed 12% - 14% guaranteed a FF bun fight on opening offers with i suspect not so much DD being done as is now the case by the lenders.Its got me wondering if smaller loans like the bakery which went pretty quick and or even a lower rate but with Abl's usual security & handling (i am not talking lets take any old thing as some platforms do) might help bring in more borrowers and help lenders get some form of diversification.I realise that is what the portfolio loans may have been about when launched but over a year later that still seems a niche product and i admit could be a sign that most lenders don't want lower rates but is One loan a month at a high rate not filling any better?
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blender
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Post by blender on Jun 2, 2019 10:17:58 GMT
Additionally, Collateral followed by Lendy (Savings Stream) has rather spooked the horses. Ablrate's model of monthly fees gives it high resilience to a low supply of new loans.
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macq
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Post by macq on Jun 2, 2019 11:40:11 GMT
Additionally, Collateral followed by Lendy (Savings Stream) has rather spooked the horses. Ablrate's model of monthly fees gives it high resilience to a low supply of new loans. But that resilience to a low supply of new loans due to fee's will only last as long as the current loans if new Ones don't fill for what ever reason surely?They know there business model better then me but i do wonder is it better to have fees on a loan every Six weeks or say fee's on 10 loans a month(even at a lower rate they may earn more and me personally would rather invest in 10 loans carefully selected with assets in the Abl way earning say 8 - 10% or more if they think it warrants it then the current 1 loan which after DD i leave. Don't get me wrong i like Abl and want them to survive and i am not thinking of say the FC model where you lend to nearly any business or auto invest across many but i do think we are entering the next stage of P2p in general where lenders & platforms may need to compromise or as some platforms do rely on institutional money and to keep expecting good loans at 14% may be over (but i am more then happy to be proved wrong )
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nw99
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Post by nw99 on Jun 2, 2019 13:37:41 GMT
8k offered at 97.9 looks like the underwriters are trying to get rid of this loan before they get lumped into another tranche of the new one. Its pretty obvious that in these situations investors are going to be much more inclined to snap up the existing loan at a discount as opposed to investing in the new one at par. Maybe releasing in smaller tranches would work - the original loan was huge at £1.2m. Contrast this with the patisserie loan which was gone in about 6 hours and is now trading above par in the secondary market. All the offers lifted out best offer 99 now
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