Nomad
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Post by Nomad on May 12, 2021 10:19:41 GMT
What does the team think? about these car loans. I've cash sitting in my account earning SFA and these loans are all (I think) available below par and at 12% interest. OK the borrower had a little wobble, restructured and interest only for a few months which is possibly fair enough considering the vehicle market has been affected by covid like most things. With no hint of new loans coming to market (which would be my preference for diversification reasons) I'm wondering if it sensible to top up my car holdings. I get itchy with money sitting there not working for me. S*ds law of course, once I do that, a new loan will turn up and I'll have no cash to put into it. I really wish ABL would implement even a half decent pipeline ablrate Are you listening? I had 5 figures in these loans for quite a while, but my confidence in ABL is not what it was and I have gradually exited all of them.
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Post by ladywhitenap on May 12, 2021 11:01:41 GMT
What does the team think? about these car loans. I've cash sitting in my account earning SFA and these loans are all (I think) available below par and at 12% interest. OK the borrower had a little wobble, restructured and interest only for a few months which is possibly fair enough considering the vehicle market has been affected by covid like most things. With no hint of new loans coming to market (which would be my preference for diversification reasons) I'm wondering if it sensible to top up my car holdings. I get itchy with money sitting there not working for me. S*ds law of course, once I do that, a new loan will turn up and I'll have no cash to put into it. I really wish ABL would implement even a half decent pipeline ablrate Are you listening? I had 5 figures in these loans for quite a while, but my confidence in ABL is not what it was and I have gradually exited all of them. I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW
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Post by Badly Drawn Stickman on May 12, 2021 15:27:39 GMT
I had 5 figures in these loans for quite a while, but my confidence in ABL is not what it was and I have gradually exited all of them. I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW I suppose if '149 and the gang' do repay in the near future, then the chances are everything else will start trading a little higher as a result. So buying now may be a smart move in that context. I have been doing a little stockpiling of loans I feel maintain a value consistently (unless the unforeseen turns up). I suspect another wave of 156 will be waiting in the wings for any repayment so am slightly puzzled by the above par price that is trading at currently.
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sapphire
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Post by sapphire on May 12, 2021 15:31:51 GMT
I had 5 figures in these loans for quite a while, but my confidence in ABL is not what it was and I have gradually exited all of them. I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW Whilst cash drag is not ideal, I prefer to wait and invest in a loan I am comfortable with rather than rush to invest somewhere quickly and risk the capital. From a Behavioural finance perspective, the expected regret if I were lose capital by rushing and investing somewhere quickly to minimise cash drag, is significantly greater than the joy from the additional interest.
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Post by df on May 12, 2021 20:00:11 GMT
I had 5 figures in these loans for quite a while, but my confidence in ABL is not what it was and I have gradually exited all of them. I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW I used to reinvest returns into A**1 at the lowest discount available and immediately put the same amount on SM at 1% above the purchase price. Did it out of curiosity to see if I can increase returns whilst maintaining approximately the same level of exposure. It did work. I don't do it at present, prefer to withdraw returns and deposit when new loans are available for bidding, but I think reinvesting in A**1 is not a bad idea if one wants to maintain the value on platform. My instant access is currently 1.02%, not as bad as Markus 0.4%.
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Balder
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Post by Balder on May 13, 2021 5:59:34 GMT
I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW I used to reinvest returns into A**1 at the lowest discount available and immediately put the same amount on SM at 1% above the purchase price. Did it out of curiosity to see if I can increase returns whilst maintaining approximately the same level of exposure. It did work. I don't do it at present, prefer to withdraw returns and deposit when new loans are available for bidding, but I think reinvesting in A**1 is not a bad idea if one wants to maintain the value on platform. My instant access is currently 1.02%, not as bad as Markus 0.4%. may I ask where are you getting 1.02% instant access?
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Post by df on May 13, 2021 13:41:12 GMT
I used to reinvest returns into A**1 at the lowest discount available and immediately put the same amount on SM at 1% above the purchase price. Did it out of curiosity to see if I can increase returns whilst maintaining approximately the same level of exposure. It did work. I don't do it at present, prefer to withdraw returns and deposit when new loans are available for bidding, but I think reinvesting in A**1 is not a bad idea if one wants to maintain the value on platform. My instant access is currently 1.02%, not as bad as Markus 0.4%. may I ask where are you getting 1.02% instant access? Al Rayan, but this account is no longer available to new customers. I’ve opened it in September 2019, and the window was closed soon after that. At the start it paid 1.6% interest and then gradually reduced to 1.02%.
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blender
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Post by blender on May 14, 2021 8:23:33 GMT
I have some misgivings about ABL lately but they more about what I would wish they would get on and do and how quickly etc but in the end they do seem to come good and so I'm sticking with them and not looking to move out. I too possibly have 5 figures in so and with my diversification hat on I should perhaps not top them up but its my idle cash that bugs me. My emergency cash fund sits in an instant access bank at 0.4% and I have to tolerate that but the rest has to work harder to make up for PPR (P*ss Poor Returns)! LW I used to reinvest returns into A**1 at the lowest discount available and immediately put the same amount on SM at 1% above the purchase price. Did it out of curiosity to see if I can increase returns whilst maintaining approximately the same level of exposure. It did work. I don't do it at present, prefer to withdraw returns and deposit when new loans are available for bidding, but I think reinvesting in A**1 is not a bad idea if one wants to maintain the value on platform.
My instant access is currently 1.02%, not as bad as Markus 0.4%. I hesitate to give advice, but feel the need to balance this with some relevant information for those not familiar with the history. These eight loans have £3.7 M outstanding which originally was to be repaid, some in the past and some in the future, but all by November 2021. That repayment completion has been kicked into 2025, and of course the pandemic bears some responsibility for that. So that's OK then? The repayments are all up to date on a restructured basis, but where is the cash coming from and what is the value of the security? We have no idea. This borrower is over four months late in filing the accounts with companies house. The security is all debentures and corporate guarantees and might come down to the value of motor stocks. How will the current security value, or even the value a year ago, compare with £3.7M - we cannot find out, we are not told. The silence is deafening. Due diligence is impossible to do. But the risk is OK because it is mitigated by a 2% discount through ASMX? Value on the platform is not just today's number. Now consider that these eight loans are part of a group of fourteen existing Ablrate loans through four borrowers all of which track back through 'significant control' to one little company at Leeds, micro accounts up to date. But the dependent four Ablrate borrowers, and the intermediary company, are at least three months late filing, and in various stages of being struck off, and so we cannot see the position even a year ago. All are up to date with their restructured payments, except 131 and 134 pubs which are on a holiday since October. None have real security except 59 and 74 property loans which are probably covered. What about personal guarantees? There are none. These are facts - other balancing and comforting facts would be very welcome. By the way, I do not hold these loans, even with a 2% discount.
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Post by ablrate on May 14, 2021 11:24:44 GMT
We are expecting an update on these loans and will pass this on as soon as we have it.
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brush
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Post by brush on Oct 26, 2021 10:20:42 GMT
We are expecting to receive payments from the Borrower to start tomorrow to bring those few outstanding up to date.
Posted On 18/10/2021 16:42
Just a reminder abl
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GreenZero
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The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Oct 26, 2021 11:30:24 GMT
I must admit I'm a getting a little concerned about these loans. They have been restructured a number of times now, resulting in payments being missed whilst the loans are restructured.
Despite these restructures, payments continue to be missed which prompts another restructure, rinse and repeat.
I tend to feel these restructures extending the repayment period and short payment holiday could be just kicking the problem in to the long grass?
I know it has been said before, that they always pay evenually, but I'm not sure how long this is sustainable.
Coupled with a low interest rate of 12% for loans roughly totalling £3m, they must be 'laughing all the way to the Leeds'
Am I missing something??
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blender
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Post by blender on Oct 26, 2021 13:07:17 GMT
I must admit I'm a getting a little concerned about these loans. They have been restructured a number of times now, resulting in payments being missed whilst the loans are restructured. Despite these restructures, payments continue to be missed which prompts another restructure, rinse and repeat. I tend to feel these restructures extending the repayment period and short payment holiday could be just kicking the problem in to the long grass? I know it has been said before, that they always pay evenually, but I'm not sure how long this is sustainable. Coupled with a low interest rate of 12% for loans roughly totalling £3m, they must be 'laughing all the way to the Leeds' Am I missing something??Yes, I guess you might be missing large stocks of valuable cars which would permit an alternative ablrate strategy. Have you seen the balance sheet for 31-12-2019, which has net assets negative almost to the value of the present Abl loans while the book value of the debtors was roughly equal to the Abl loans? And that was before the pandemic hit.
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GreenZero
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The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Oct 26, 2021 14:14:50 GMT
I never took much notice of the value of the stock (as mentioned in a previous thread), as should it go belly up, prior to anyone getting in there to take a true inventory the decent stock would go to the four winds leaving a load of dross which on paper is worthh X yet in reality worth next to nothing. That's my experience of the motor trade.
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Balder
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Post by Balder on Oct 26, 2021 16:00:18 GMT
ablrate how about a response. I see zero admin note against the latest missed payment yet again, same old same old........
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Balder
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Post by Balder on Oct 26, 2021 16:44:39 GMT
I never took much notice of the value of the stock (as mentioned in a previous thread), as should it go belly up, prior to anyone getting in there to take a true inventory the decent stock would go to the four winds leaving a load of dross which on paper is worthh X yet in reality worth next to nothing. That's my experience of the motor trade. While the news keeps reporting how the second hand car market is booming and prices are high.
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