|
Post by ablrateandy on Dec 2, 2015 21:14:36 GMT
Two quick fire loans are expected to go up if I get the docs sorted in the next 48 hours. 1. £100,000 to Ablrate Assets Ltd, 2 months, 12pc. This loan is being taken by Ablrate Assets Ltd and being lent on to an anonymous fund manager. As security, they are pledging their existing investments in the loan that is listed on the site as Cessna Caravan to a Multinational Corporate. They hold in excess of 1mio of that loan and so the LTV is sub 10pc. The loan is unimpaired and obviously is already held in our system. 2. c £100,000 to C******* C******, 6 months, 13pc. C******* are due to repay their first loan and as soon as the funds hit our account to repay their 50 containers from their first ever deal they will be borrowing to finance a purchase of 75 more containers on the same 6 month term. An email will go out shortly on this. Number 1 is slightly different from normal for us and I'm happy to field questions
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Dec 2, 2015 21:56:58 GMT
So 1 is effectively secured by another loan which is already being traded. Errrr, interesting. The coverage ratio is nice though.
I expect 2 will fly out though based on previous tranches.
edit: is the 13% now the new normal for crate loans based on previous lending speed? Is this pricing to risk or to demand?
|
|
baldpate
Member of DD Central
Posts: 548
Likes: 406
|
Post by baldpate on Dec 2, 2015 22:36:04 GMT
Err - sorry, I'm not sure I fully understand No 1. a) Who are these people "Ablrate Assets Ltd" and what is their relationship to "Ablrate" (the platform), and to Aviation and Tech Capital Limited ? b) So ... "Ablrate Assets Ltd" lend £100K to "anonymous fund manager" secured on a £1M loan part in the Cessna loan, we (retail lenders) having lent 100K to "Ablrate Assets Ltd" through the platform in the usual way, right? And our security is ... what? I mean, what if "anonymous fund manager" defaults? Yes, I know it seems highly unlikely, but let's play "what if" anyway - how does "Ablrate Assets Ltd" propose to then repay its platform lenders at the end of the 2 month term?
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on Dec 2, 2015 23:05:50 GMT
Complicated loan deals like this make me naturally cautious. I like the platform but would prefer more straightforward offerings.
|
|
|
Post by ablrateandy on Dec 2, 2015 23:06:41 GMT
Ablrate Assets Ltd is our trustee company, so in the event of a default, they will act on your behalf to administer assets. At the moment it is dormant as it contains no assets or liabilities.
Your security is the fund manager's investment in the Cessna loan (current value > £1mio). If they default, we cancel their investment in the loan and the borrower will make the payments to Ablrate Assets Ltd instead of the Fund Manager. We would then sell their loan parts to other lenders at a "fair market price".
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Dec 3, 2015 4:31:36 GMT
Better to do C****** first then the fund manager the next business day even if that delays one or both to next week. Seems likely that this is the preferred order for people to invest and the second loan may pick up more money this way instead of having people holding back funds for the one they want most.
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Dec 3, 2015 5:55:46 GMT
Ablrate Assets Ltd is our trustee company, so in the event of a default, they will act on your behalf to administer assets. At the moment it is dormant as it contains no assets or liabilities. Your security is the fund manager's investment in the Cessna loan (current value > £1mio). If they default, we cancel their investment in the loan and the borrower will make the payments to Ablrate Assets Ltd instead of the Fund Manager. We would then sell their loan parts to other lenders at a "fair market price". So in the case of default, it would require there to be 100k of SM trading in that loan to return capital to lenders. Is there that much liquidity in that loan on a regular basis? Surely a 'forced' sale of that sort would drive down the markets rate for 'fair value' in that loan, impacting other lenders value in that loan?
|
|
|
Post by ablrateandy on Dec 3, 2015 6:36:50 GMT
in the event of the security being executed, the loan parts will be appropriated from the fund at a substantial discount to where we feel that we can sell 100k of the loan. We also have the option not to execute but just to leave them with the capital whilst we withhold interest payments and use them to pay down the debt.
The fund remains responsible for all credit risk to the point of their own insolvency.
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Dec 3, 2015 6:53:09 GMT
Why take a loan rather than sell some of their own lending?
|
|
|
Post by ablrateandy on Dec 3, 2015 7:28:38 GMT
No need for them to do that as they can fund it at a break even rather than risk not being able to re-acquire the asset.
|
|
surby
Minor shareholder in Assetz Capital
Posts: 32
Likes: 18
|
Post by surby on Dec 3, 2015 7:51:34 GMT
Given the previous issues with rapid funding of small loans, will Ablrate consider bidding limits on these two?
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Dec 3, 2015 9:10:27 GMT
Does this mean the container loan is being repaid early (as it's due on the 8th) and we will have the money back in our accounts before the new loan goes live? ablrateandy ?
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Dec 3, 2015 9:42:51 GMT
Just out of interest, what would be the LTV of the container loan?
|
|
ianj
Member of DD Central
Posts: 654
Likes: 519
|
Post by ianj on Dec 3, 2015 9:54:29 GMT
Given the previous issues with rapid funding of small loans, will Ablrate consider bidding limits on these two? Or, looking at it from a different angle, will I be able to bid for 100% of the loan?
|
|
duck
Member of DD Central
Posts: 2,586
Likes: 5,763
|
Post by duck on Dec 3, 2015 10:08:36 GMT
12.30 today for the first loan and it is good to read that scaling of bids above £1K will take place if necessary.
Anybody else find themselves scrabbling around for loose cash this morning? Didn't expect 2 in 2 days with a few hours notice....
My sofa is in bits but I've got there!
|
|