debeast
(o)(o)
Posts: 238 
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Post by debeast on Jan 22, 2015 12:19:38 GMT
Secondary market equation! Am i being stupid. I can't see the sellers premium when i look at the micoloans page for a loan  See the anonymised screenshot above. Now i can see it in the selected opportunities but not in the main bit. How can i tell what is good to buy? thanks /beastie |
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baldpate
Member of DD Central
Posts: 548
Likes: 406
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Post by baldpate on Jan 23, 2015 14:45:27 GMT
I think it is a great shame the seller's premium has been removed from the main secondary market page, as it is an essential piece of information when quantifying the extra risk incurred by the borrower deciding to repay early.
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ianb
Posts: 161
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Post by ianb on Jan 23, 2015 15:07:50 GMT
I think it is a great shame the seller's premium has been removed from the main secondary market page, as it is an essential piece of information when quantifying the extra risk incurred by the borrower deciding to repay early. Agreed - it makes it practically worthless to me.
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debeast
(o)(o)
Posts: 238
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Post by debeast on Jan 23, 2015 22:16:48 GMT
Thank you that makes sense.
If not a little bit annoying though
/beastie
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Post by valueinvestor123 on Jan 23, 2015 22:17:06 GMT
I am not sure this is a good set up. That way, Rebsoc appears to favour flippers rather than hold-to-maturity investors. On FC for example, if you see a massive premium (and it's signposted very clearly), you just move on to another loan (I at least used to, I don't use FC much anymore). With Rebsoc, it's a bit of a hassle to work out the premium and the default choice would be to just accept the rate (and premium, whatever it might be) on offer.
So you are getting more risk for a smaller rate and reward the seller handsomely.
Also I seem to be missing a few k, probably due to the fact that in order to get invested quicker, I was just buying up micro loans like crazy and I think it calculates things differently from FC, or perhaps there's just much more choice on FC (granted, rates are a little lower too, but I wonder if the dead time with RebsSoc, either waiting long time for auctions to end, getting outbid or being stuck with the SM is not killing the returns) but basically due to high premiums that I probably paid, the capital deployed is reduced. And I still can't seem to manage to get fully invested.
On first glance the potential rewards looks much more favourable to FC, but now I am not so sure.
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