registerme
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Post by registerme on May 11, 2015 13:56:35 GMT
12674 was taken out on Saturday the 9th. £450k, 8%, 2% cashback. Another £415k has gone up up today, same terms (and already filled to 6%). That seems.... fast to me. Any thoughts?
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SteveT
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Post by SteveT on May 11, 2015 14:02:54 GMT
12674 was taken out on Saturday the 9th. £450k, 8%, 2% cashback. Another £415k has gone up up today, same terms (and already filled to 6%). That seems.... fast to me. Any thoughts? Entirely normal for these large multi-tranche property loans. The imminent further tranches were mentioned in the Q&A description of the first tranche.
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registerme
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Post by registerme on May 11, 2015 14:11:00 GMT
Thanks Steve. I remembered the additional tranches (of which there now seems to be only this last one, at least to make up the stated aggregate £865k). I didn't realise that this sort of additional tranche being requested as quickly as this was normal.
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SteveT
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Post by SteveT on May 11, 2015 14:29:44 GMT
The notional reason given by Fanciful Circumlocutions for splitting large property loans into multiple tranches is to give Borrowers the flexibility to repay parts of the total loan earlier than others. In reality I think it has more to do with lack of confidence in whether / how fast an auction will fill (which this Forum seems better able to guesstimate than FC) and the option to ladle extra CB onto the later tranches to get them away.
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sl75
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Post by sl75 on May 11, 2015 14:31:42 GMT
Exactly as described in the investor report attached to the listing for the first tranche.
However, based on what the first tranche stated, there remains an anomaly... it specifically stated that funds from the FIRST tranche would be used to repay the original investors, before it mentioned immediately listing the second tranche - so the second tranche should NOT show the original loan as outstanding, because funds from the first tranche should already have been used to settle it!
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blender
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Post by blender on May 11, 2015 14:41:09 GMT
I imagine they will pay off the original loan by 17th, when the next repayment is due and delay would trigger another month's interest. Maybe the funds from tranche 1 have not been released yet.
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Post by GSV3MIaC on May 11, 2015 16:16:02 GMT
12674 was taken out on Saturday the 9th. £450k, 8%, 2% cashback. Another £415k has gone up up today, same terms (and already filled to 6%). That seems.... fast to me. Any thoughts? Was that maybe the one which sat around and failed to get funded at 8% with little or no CB, before being offered again? If it was, then I can see as how tranche 2 could be hot on the heels of the rather late tranche 1. But historically there have been several property loans which have come out machine-gun fashion, as soon as a tranche funds. I guess FC may be of the 'well those sold, let's offer some more while the market is hot' opinion?
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SteveT
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Post by SteveT on May 18, 2015 8:16:20 GMT
I sense there's probably some rethinking underway of the Property Loan "strategy" (being generous here) at Festering Crumpets...
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blender
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Post by blender on May 18, 2015 8:50:42 GMT
I sense there's probably some rethinking underway of the Property Loan "strategy" (being generous here) at Festering Crumpets... Very likely. I wonder what over-trading would look like in a P2P operator. Perhaps taking on too much loan business without having the lender cash to fill it, but going ahead anyway on the balance sheet.
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registerme
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Post by registerme on May 18, 2015 9:58:29 GMT
Didn't they just raise equity? If they didn't need all the cash immediately to cover operational costs perhaps it makes sense for them to use it to get loans away (not sure I agree with this though).
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am
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Post by am on May 18, 2015 10:50:51 GMT
There's a simple solution - have institutions finance the earlier tranches of property development loans.
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Post by GSV3MIaC on May 18, 2015 11:23:00 GMT
And poof, by 9:04 am 12781 has been reset to 0% filled. FC must be busy doing something. Actually the comment on this one says "The borrower has delayed completion until the end of June and does not wish to incur additional interest costs." May be a lucky escape for Flimsy Coverage, since embarrassment seemed likely.
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