blender
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Post by blender on Aug 23, 2018 21:28:54 GMT
Ablrate have done similar with 67 and 68 which are secured by first and second charges at 12% and 14%.
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n
Member of DD Central
Yet another Nick
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Post by n on Aug 24, 2018 7:37:46 GMT
Ablrate have done similar with 67 and 68 which are secured by first and second charges at 12% and 14%. Yes, 68 being amortising makes it more palatable. But what could be done to make a 3rd charge feasible?
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blender
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Post by blender on Aug 24, 2018 10:34:33 GMT
I was just noting the existence of this one rather than passing any comment. I find the MT Birkenhead very dubious ++, and would not wish to see that here, nor some of the FS practices.
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elliotn
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Post by elliotn on Aug 24, 2018 11:08:40 GMT
Portfolio loans may suit you, the one so far offering a reassuring 8%. That of course offered the same security as their self-select, 12% counterparts for a company that never made a profit. We are typically offered 12/13% regardless of whether the borrower is paying abl 15% or 26%, so our cut is not necessarily a definitive risk indicator. Look at the security and then scythe the 90D val rather than rely on lower rates. AC has plenty at the spread you are suggesting. The one portfolio loan thus far was short lived. And as you say, it was a re-rating of the 12% existing loan. Relying on 90-day valuations as a better guide is all fair and well given that such a valuation is reliable, however, lets run a look over recent loans and assume they all default (I'm taking the most recent available on the secondary market): 110 - Assuming company failure, the tangible security would be the vehicle stock which is lent on at up to 90% trade value. Company failure could well be linked to a deterioration in the motor trade which would directly impact trade values. Any guesses as to true liquidation trade value in this circumstance? I've invested in previous tranches but have reached my exposure limit. 109 - Specialist development site(s), very difficult to value in event of company failure. 108 - Security is a patent that is yet to be ratified, the value of which is based upon projected commercialisation targets 105 - Security value derived from projected trading figures, failure to achieve those figures demolishes the valuation 104 - Security value derived from projected trading figures (via leasing), failure to achieve those figures demolishes the valuation 103 - Security is 198 units which the valuer makes clear they did not individually inspect. I have previously invested significant amounts into Ca***ss loans but against what I felt were much better assets. 102 - Similar to 105 and 104, although as these properties were initially valued 2016 it is assumed that the lease went ahead successfully and they have an established trading history. So that's better. 101 - Same as 109 100 - Same as 110 Of these 9 loans, there are 5 borrowers. What are the chances of default? I've no idea. Hopefully all business plans are successful, repayments are upheld and both lenders and businesses make a good return. But that doesn't always happen and if the last 24 months have taught us anything it's that the longer a loan book runs the risk of defaults becomes near certainty. That's when the security matters. We've all lent on questionable security in the past, with years of good returns. Until the defaults came rolling in. The Lendy and FundingSecure boards are rampant with dissatisfied lenders to the point that the insight and value previous posts provided has been all but eroded. If you want to continue to lend at the 12-13% level then be my guest - Ablrate are serving you well. Ablrate need not change the makeup of its loan book to continue to be successful for the immediate term. But without a cautious shift, a modest downplaying of rate-chasing greed, my funds will struggle to comfortably remain. New loans on AssetzCapital generally pay ~6-8% and in my view might be yield 8-10% on a platform with lower overheads, such as Ablrate. Landbay and LendInvest seem to offer even worse rates of return, as discussed in p2pindependentforum.com/thread/9991/poor-ltv-returnI think there's a big gap in the market at the 8-10% space. Perhaps if portfolio loans ever finally get going and are of a quality which reflects the lower rate... I note a forum member said she invested in WC because the rates were reassuringly low. Her update included some very large defaults for which the PF would not be used. I will admit I did not read your long reply but for me the nature of the security, borrower capability and diversification trump the headline rate for risk signalling, particularly in capital assets, development and commercial repayment loans.
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oldtimer
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Post by oldtimer on Aug 24, 2018 13:01:31 GMT
Ablrate, After the recent 'electrifying trouble free' new loan launch, when can the next one be expected? Hopefully the answer will be, soon. We are just awaiting some information from the borrower to be able to launch a new one.. hopefully we will get that this week. Any update on this or other new loans ablrate ?
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Post by supernumerary on Aug 24, 2018 16:58:08 GMT
HOT OFF THE PRESSES:FROM Ablrate: "We are looking at (in no particular order): * 2 opportunities in the Care Home sector from a new borrower based in the ******************. Outstanding on the first project, we are awaiting the final draft of the valuation report that is to be addressed to us. The second project is in the drafting stage and also awaits the valuation report. (Approx loan size c.£600K - £1m each). * An existing borrower is evaluating a small top up loan to facilitate some growth and expansion opportunities available to them (Approx loan size c.£100K - £200K). * Another existing borrower is considering bringing in house the manufacture of a number of components and is considering a loan to fund the acquisition of new machinery (Approx loan size c.£500K - 600K). * We are evaluating an interesting opportunity with Intellectual property as the security (Loan size to be determined if considered appropriate). * We also have two new borrowers which are directly related to an existing borrower which operate within the energy sector. The first of these is for the purchase of a large asset and we are proposing a launch towards the end of next week. (Loan size £1.5m). The second project proposal is near completion and again we are awaiting the final draft of the valuation report before its launch (Loan size £1m). From the above I hope you can see we have diverse and interesting pipeline and a number of them are close to completion. As soon as a launch date has been set for the first loan next week, we will update lenders again with the proposed timetable." So looking good.
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Post by df on Aug 25, 2018 1:09:55 GMT
HOT OFF THE PRESSES:FROM Ablrate: "We are looking at (in no particular order): * 2 opportunities in the Care Home sector from a new borrower based in the ******************. Outstanding on the first project, we are awaiting the final draft of the valuation report that is to be addressed to us. The second project is in the drafting stage and also awaits the valuation report. (Approx loan size c.£600K - £1m each). * An existing borrower is evaluating a small top up loan to facilitate some growth and expansion opportunities available to them (Approx loan size c.£100K - £200K). * Another existing borrower is considering bringing in house the manufacture of a number of components and is considering a loan to fund the acquisition of new machinery (Approx loan size c.£500K - 600K). * We are evaluating an interesting opportunity with Intellectual property as the security (Loan size to be determined if considered appropriate). * We also have two new borrowers which are directly related to an existing borrower which operate within the energy sector. The first of these is for the purchase of a large asset and we are proposing a launch towards the end of next week. (Loan size £1.5m). The second project proposal is near completion and again we are awaiting the final draft of the valuation report before its launch (Loan size £1m). From the above I hope you can see we have diverse and interesting pipeline and a number of them are close to completion. As soon as a launch date has been set for the first loan next week, we will update lenders again with the proposed timetable." So looking good. I liked this e-mail. I've recently suggested MT style pipeline updates, containing no specific dates or obligations - just some idea of what is or might be coming soon. Helps me to decide what to do with returns and avoid unnecessary withdrawals/deposits.
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Post by fatbritabroad on Aug 25, 2018 4:10:39 GMT
I'd like it more if there was a better split between new and existing borrowers
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hantsowl
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Post by hantsowl on Aug 26, 2018 10:44:19 GMT
Portfolio loans may suit you, the one so far offering a reassuring 8%. That of course offered the same security as their self-select, 12% counterparts for a company that never made a profit. We are typically offered 12/13% regardless of whether the borrower is paying abl 15% or 26%, so our cut is not necessarily a definitive risk indicator. Look at the security and then scythe the 90D val rather than rely on lower rates. AC has plenty at the spread you are suggesting. The one portfolio loan thus far was short lived. And as you say, it was a re-rating of the 12% existing loan. .... .... I think there's a big gap in the market at the 8-10% space. Perhaps if portfolio loans ever finally get going and are of a quality which reflects the lower rate... Hopefully the portfolio loans will get going. In the meantime, if you are looking for 8-10% returns you could consider Proplend (tranches cover a wide range for different risk levels) or Relendex.
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Post by supernumerary on Aug 30, 2018 12:37:11 GMT
HOT OFF THE PRESSES:FROM Ablrate: "We are looking at (in no particular order): * 2 opportunities in the Care Home sector from a new borrower based in the ******************. Outstanding on the first project, we are awaiting the final draft of the valuation report that is to be addressed to us. The second project is in the drafting stage and also awaits the valuation report. (Approx loan size c.£600K - £1m each). * An existing borrower is evaluating a small top up loan to facilitate some growth and expansion opportunities available to them (Approx loan size c.£100K - £200K). * Another existing borrower is considering bringing in house the manufacture of a number of components and is considering a loan to fund the acquisition of new machinery (Approx loan size c.£500K - 600K). * We are evaluating an interesting opportunity with Intellectual property as the security (Loan size to be determined if considered appropriate). * We also have two new borrowers which are directly related to an existing borrower which operate within the energy sector. The first of these is for the purchase of a large asset and we are proposing a launch towards the end of next week. (Loan size £1.5m). The second project proposal is near completion and again we are awaiting the final draft of the valuation report before its launch (Loan size £1m). From the above I hope you can see we have diverse and interesting pipeline and a number of them are close to completion. As soon as a launch date has been set for the first loan next week, we will update lenders again with the proposed timetable." So looking good. I liked this e-mail. I've recently suggested MT style pipeline updates, containing no specific dates or obligations - just some idea of what is or might be coming soon. Helps me to decide what to do with returns and avoid unnecessary withdrawals/deposits. df, So do I. The email was VERY helpful. The 'proof will be in the pudding', so to speak late lunch time, or this afternoon, or evening... Ablrate: "As soon as a launch date has been set for the first loan next week..."With no weekend launches, due to requirement of computer programmers being 'on hand', 'this week' MUST mean Friday, with the details of the proposed timetable being posted today! Let us all hope that the schedule can be kept and 'Cape Ablrate' is being prepared, as I type...
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Post by supernumerary on Aug 30, 2018 15:58:51 GMT
LATEST NEWS from 'Cape Ablrate' : "I just wanted to take this opportunity to share with you a brief update about the planned Loan launch for this week. We have decided to delay this as I write, as we await the final pieces of information we require to firm up the details of the security available to us. As I am sure you can understand, while we always hope to offer a loan opportunity, ensuring it is 100% complete and all the pieces of the security suite are in place, is our number one priority. On a more positive note, we have received a draft of one of the valuations we have been waiting for on another opportunity. We will continue to work on all the deals in parallel and launch the loans as soon as they are completed from a due diligence perspective. I will continue to update you as launch timetables become firm, but we do anticipate moving forward during the course of next week on many fronts." Busy week, next week then...
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blender
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Post by blender on Sept 2, 2018 16:34:06 GMT
"Er, Scott, I'm hearing that a group of lenders have so much spare cash that it is burning huge holes in their pockets. We need to launch immediately!" "FAB, Brains. Are we clear to launch next week, Gordon? Gordon!!! how did you get on board?"
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Post by wildlife2 on Sept 4, 2018 12:56:56 GMT
New loan on Thursday, email just received....
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Post by Deleted on Sept 4, 2018 13:01:42 GMT
2nd charge and PG...... fingers down throat emoji.....
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Post by dan1 on Sept 4, 2018 13:06:55 GMT
Healthcare and amortising suggests the asset is income generating, I'm thinking something like a care home. Pure speculation though
Edit: from update on 24 Aug....
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