stevio
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Post by stevio on Aug 28, 2015 5:38:23 GMT
Is there anyway of working out the default rate for MoneyThing?
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SteveT
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Post by SteveT on Aug 28, 2015 6:40:01 GMT
AFAIK, there have been no defaults as yet on MT loans, certainly not that have impacted lender returns. Of course there are always going to be defaults on some of the underlying pawned items in the CS loans but then CS replace those items with others of equivalent value under their agreement with MT.
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webwiz
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Post by webwiz on Aug 28, 2015 8:35:36 GMT
AIUI as long as MT and its partners remain solvent they will take the hit on all defaults. Lenders are effectively lending them working capital. If I am right there is little point in doing much DD on the borrowers or the loans.
I am not certain, but I have an idea that defaults may be more profitable for them than repaid loans.
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mv
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Post by mv on Aug 28, 2015 9:52:20 GMT
AIUI as long as MT and its partners remain solvent they will take the hit on all defaults. Lenders are effectively lending them working capital. If I am right there is little point in doing much DD on the borrowers or the loans. I am not certain, but I have an idea that defaults may be more profitable for them than repaid loans. Unless it is a whole bunch of paintings...
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stevio
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Post by stevio on Aug 28, 2015 10:48:31 GMT
AFAIK, there have been no defaults as yet on MT loans, certainly not that have impacted lender returns. Of course there are always going to be defaults on some of the underlying pawned items in the CS loans but then CS replace those items with others of equivalent value under their agreement with MT. Thanks Stevet So does that mean that all borrowers have paid back money lent and the no assets have needed to be sold? Where does it explain about the replacement of loans on their website? Is the replacement of loans just in the Managed Portfolio's?
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stevio
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Post by stevio on Aug 28, 2015 10:49:50 GMT
AIUI as long as MT and its partners remain solvent they will take the hit on all defaults. Lenders are effectively lending them working capital. If I am right there is little point in doing much DD on the borrowers or the loans. I am not certain, but I have an idea that defaults may be more profitable for them than repaid loans. Unless it is a whole bunch of paintings... Yes I thought the aboriginal paintings went bad and didn't reach the sale price hoped for?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 28, 2015 11:50:01 GMT
Unless it is a whole bunch of paintings... Yes I thought the aboriginal paintings went bad and didn't reach the sale price hoped for? Wrong platform, that was Funding Secure, theyve had a few issues with art. None of the MT art loans have reached maturity yet I dont think we have any numbers on loans not redeemed by actual borrower where partner loans are concerned. All MT originated loans have repaid so far. Its only the Managed Portfolios that rotate the loans as they mature/default. It referred to in each loan write up.
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stevio
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Post by stevio on Aug 28, 2015 12:15:49 GMT
Apologies, I have confused platforms once before, moderator please remove my comment if you feel necessary
So it seems all MT loans have been repaid so far?
Is that with about 6 months worth of trading?
That seems good for what seems essentially a pawn broker business, where you would expect some to not repay and the goods needing to be sold
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 28, 2015 12:38:21 GMT
Apologies, I have confused platforms once before, moderator please remove my comment if you feel necessary So it seems all MT loans have been repaid so far? Is that with about 6 months worth of trading? That seems good for what seems essentially a pawn broker business, where you would expect some to not repay and the goods needing to be sold You can delete your own comment if you wish, just click on the settings cog at the top right of your post and click delete post (it will still show in mine reply but I can edit it away) Its actually relevant in terms of highlighting the potential issue of art loan & valuations which are a concern & lead to many avoiding the MT loans in this area. Yes, Yes. One of the advantages of MT is thats not something we have to worry about as MT/CS pay us anyway and then recover behind the scenes. (Sure MT would let us know outcome for their loans) Danger is if there are too many it would undermine viability of MT itself but LTV is low so would need massive misvaluation or market collapse to really be an issue.
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