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Post by flx123 on Apr 2, 2015 20:28:02 GMT
Hi, I am new to RebS and am wondering how active the secondary market is. Looking at the stats, in March 2015 only 4.5K have been turned over in the SM. Which is roughly 10% of what it used to be in the previous 6 months. Also, for many loans I seem to see a very large number of microloans available on the SM. Does that mean one is basically stuck with one's loans if trying to sell at par or better?
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ianb
Posts: 161 
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Post by ianb on Apr 3, 2015 7:17:29 GMT
I put bits up from time to time at usually just over par and they usually go within a day or two. Theres a lot of stuff out there with fairly big premiums and I have no idea whether that moves much. To me, a drawback with the SM is that there is no easy way of saying 'show me all the microloans out there at <= 1% premium', the buyer has to trawl each loan one at a time to hunt for bargains, which takes time. Also, because there is no concept of accrued interest and it is effectively carried over to the buyer, if you buy just before the repayment date you effectively get all the interest meaning you can offset the premium, and I guess smart buyers will use this to their advantage.
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Post by captainconfident on Apr 3, 2015 18:42:07 GMT
Yes indeed, ianb, you've hit the nail on the head. The secondary market is little used because it like looking for a needle in a haystack. Once you've clicked your way into three or four loans, only to find the acceptable rates all come at a 5% premium, most people with a life would give up.
Plus however you sorted before examining a particular loan for parts, the site resets to some other default when you click back to try another loan, meaning you need to resort. The more loans become available for resale, the more impossible the site will become.
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SteveT
Member of DD Central
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Post by SteveT on Apr 7, 2015 10:50:09 GMT
The higher the premium, surely the greater the risk of write-off / write-down if the loan is repaid early (before term)? Certainly that is the case on FC
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markr
Member of DD Central
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Post by markr on Apr 7, 2015 12:15:27 GMT
When bidding I usually spread my bids through the top 2 or 3 percentage levels so that even if I can't be near a computer (or forget) at the auction end I'll still hopefully have some parts in at the end. If there isn't a last minute frenzy and I end up with too much, I sell off the lower percentage parts. I usually do it after a couple of month's payments and I'm not greedy over markups, so even though they are lower rate parts they will end up close to the top of buyer rate in the SM parts. They generally trickle away, although of course they are more likely to sell when the primary market is depleted.
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Post by Deleted on Apr 11, 2015 13:21:33 GMT
I managed to sell about £4k worth of micro loans in Feb or March. It took me about 2 weeks to shift all I was trying to sell.
However I had to sell aggressively - in terms of loking at the best rates and premiums being asked by others and beat them. Where I left my micro loans in the middle of the pack at the same sort of rates and premiums as others there was no action.
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