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Post by ablrateandy on Nov 5, 2015 14:50:20 GMT
Due to popular demand (!) we will, as promised, keep increasing the size to suit lender demand. We just pottered through the 300k level and so have increased it to 450k.
Thanks all for lending!
I've also attached a document about ATR 42-500 valuations in the Documents tab on the loan. Obviously the main risk in this transaction would be the short-listed buyer pulling out and then no other buyers being available. Hopefully the information (from Kroll and Ascend) will ease your minds as to the value retention and liquidity on this particular model.
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stevio
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Post by stevio on Nov 6, 2015 7:39:08 GMT
Will this continue to increase to your maximum 3 million?
I realize you are paying instant returns, but you are almost forcing people to remain in the loan for the full 6 months as there is little opportunity for someone to to leave if they wanted too
At the current rate of filling and if it increases to 3 million, then it is going to take a couple months to fill. A loan with 4 months left is unlikely to sell at par, so a discount would be needed to exit
Even if you offered in tranches, the fact there is a new tranche at par would mean the originals would again need to be sold at a discount
This also effects the sale ability of other loans on your secondary market at 10%, but to a lesser degree as the current 10% loans have a USP of greater length
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Post by ablrateandy on Nov 6, 2015 8:37:31 GMT
It's listed for thirty days and I expect it to close then. We don't release the money until it closes and the borrower wants to pay the deposit so there's no economic reason to run it longer.
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stevio
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Post by stevio on Nov 6, 2015 8:47:28 GMT
Thanks, after the deposit has been paid, is it likely there will be further tranches?
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Post by ablrateandy on Nov 6, 2015 9:14:36 GMT
I won't 100% guarantee it but I suspect not. At the moment, the borrower is negotiating with the buyers. It is a very in-demand aircraft (see my notes on the market in the Documents tag). Therefore in his ideal situation he will get the buyer to put a large amount, if not the whole amount, down up-front. That amount would then be used to pay off the seller. Negotiations are still on-going but by the end of the marketing period of the loan we should have a very clear picture.
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blender
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Post by blender on Nov 6, 2015 11:46:35 GMT
One might suspect that the secondary purposes of this loan might include keeping the platform warm with an open loan and seeing how much cash might be out there for future plane projects. If so, fair enough, provided that it does close after the 30 days and is not immediately followed by tranche two.
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