|
Post by MoneyThing on Jun 3, 2016 12:31:19 GMT
Ed, what would the duration be of these new loans. Afternoon, They would fall in-line with the existing loan end dates (22/10/17). Regards, Ed
|
|
|
Post by MoneyThing on Jun 3, 2016 12:37:43 GMT
MoneyThing Ed, am I right in thinking that all of the "3rd charge" (ultimately to become 2nd charge) tranches will operate as standalone MT loans. So once filled (including the existing tranche MTAG328) they will become tradeable on the SM but, conversely, wouldn't be eligible retrospectively for any lender incentive that might subsequently be added to help fill a later tranche? Incentives?.... who?....us? I have had a few expressions of interest in this loan and together with our capital we should be able to refinance the other lender relatively easily. However if in the event we did need incentives then we would ensure that all participants on the new batch of loans would be rewarded (so that there would be no reason to hold back in placing bids). Regards, Ed
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Jun 3, 2016 12:47:04 GMT
MoneyThing Ed, am I right in thinking that all of the "3rd charge" (ultimately to become 2nd charge) tranches will operate as standalone MT loans. So once filled (including the existing tranche MTAG328) they will become tradeable on the SM but, conversely, wouldn't be eligible retrospectively for any lender incentive that might subsequently be added to help fill a later tranche? Incentives?.... who?....us? I have had a few expressions of interest in this loan and together with our capital we should be able to refinance the other lender relatively easily. However if in the event we did need incentives then we would ensure that all participants on the new batch of loans would be rewarded (so that there would be no reason to hold back in placing bids). Regards, Ed In that case, does it make sense to get all 5 of the new tranches filled before the first ones are released for trading on the SM? ISTM that one of the reasons the B*ll***s loan took so long to fill was that regular SM availability of T1, T2 and T3 overshadowed sales of T4 and T5. If they're really all the same loan (since they rank equally and any lender incentive added later would apply across all 5) then it seems fair that they begin SM trading simultaneously.
|
|
|
Post by pepperpot on Jun 3, 2016 12:48:31 GMT
MoneyThing Ed, am I right in thinking that all of the "3rd charge" (ultimately to become 2nd charge) tranches will operate as standalone MT loans. So once filled (including the existing tranche MTAG328) they will become tradeable on the SM but, conversely, wouldn't be eligible retrospectively for any lender incentive that might subsequently be added to help fill a later tranche? A bit of strategic planning in the back of you're mind??
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Jun 3, 2016 12:51:17 GMT
MoneyThing Ed, am I right in thinking that all of the "3rd charge" (ultimately to become 2nd charge) tranches will operate as standalone MT loans. So once filled (including the existing tranche MTAG328) they will become tradeable on the SM but, conversely, wouldn't be eligible retrospectively for any lender incentive that might subsequently be added to help fill a later tranche? A bit of strategic planning in the back of you're mind?? Not so much; I've got a pretty large (by my standards) stake in the MTAG277, the 12% 2nd charge loan, which I'll be delighted to see promoted to 1st charge It's just that I'd rather see all 5 new tranches filled quickly than have them hang around overshadowing other MT loans (existing and potential) for weeks on end.
|
|
|
Post by MoneyThing on Jun 3, 2016 12:52:00 GMT
Incentives?.... who?....us? I have had a few expressions of interest in this loan and together with our capital we should be able to refinance the other lender relatively easily. However if in the event we did need incentives then we would ensure that all participants on the new batch of loans would be rewarded (so that there would be no reason to hold back in placing bids). Regards, Ed In that case, does it make sense to get all 5 of the new tranches filled before the first ones are released for trading on the SM? ISTM that one of the reasons the B*ll***s loan took so long to fill was that regular SM availability of T1, T2 and T3 overshadowed sales of T4 and T5. If they're really all the same loan (since they rank equally and any lender incentive added later would apply across all 5) then it seems fair that they begin SM trading simultaneously. Acknowledged. We should have only released the SM once all of the B loan tranches had been filled. As such for this loan we will hold off switching on the SM once all tranches are filled. Regards, Ed.
|
|
registerme
Member of DD Central
Posts: 6,183
Likes: 5,989
|
Post by registerme on Jun 3, 2016 13:11:26 GMT
mrclondon, MoneyThing, thanks, yes, I understand now. I even remember the previous discussion about this. Blame it on a head cold, back pain, and no sleep. Right, time for me to go feel sorry for myself somewhere else.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Jun 3, 2016 17:15:03 GMT
I really appreciate this approach of asking lenders their opinion before a loan goes live. Money Thing proving first class customer service and communication as always!
Why is this £1.5m loan split into 5 tranches when they will all offer the same rate, same term, same priority etc?
Given the loan is £1.5m and is second charge and many lenders are already exposed to this borrower, it's inevitable that cashback will need to be offered. Why not just offer it from day 1 to get it filled? Otherwise it will just be sitting there and presumably MT wouldn't have the float to bring other loans to aid diversification and growth.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,840
Likes: 11,068
|
Post by ilmoro on Jun 3, 2016 18:03:55 GMT
Allows borrower flexibility with repayment
MT finance the loan themselves initially but only have limited float £750k so couldnt advance the sum at once plus other loans
Better loan flow with 5 loans staggered rather just one, gives better impression if dont hang around like bad smełl
Dont will have problems filling - plenty of cash that cant be deployed on SS, AC and decent rate.
|
|
david42
Member of DD Central
Posts: 419
Likes: 346
|
Post by david42 on Jun 3, 2016 18:22:11 GMT
In that case, does it make sense to get all 5 of the new tranches filled before the first ones are released for trading on the SM? ISTM that one of the reasons the B*ll***s loan took so long to fill was that regular SM availability of T1, T2 and T3 overshadowed sales of T4 and T5. If they're really all the same loan (since they rank equally and any lender incentive added later would apply across all 5) then it seems fair that they begin SM trading simultaneously. Acknowledged. We should have only released the SM once all of the B loan tranches had been filled. As such for this loan we will hold off switching on the SM once all tranches are filled. Regards, Ed. I disagree. If you delay switching on the SM, some of us will delay placing our bids until the loan is nearly full. We have seen this before on large loans. Letting people trade the early tranches is more likely to speed up the rate money flows into the loans.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Jun 3, 2016 18:55:40 GMT
Acknowledged. We should have only released the SM once all of the B loan tranches had been filled. As such for this loan we will hold off switching on the SM once all tranches are filled. Regards, Ed. I disagree. If you delay switching on the SM, some of us will delay placing our bids until the loan is nearly full. We have seen this before on large loans. Letting people trade the early tranches is more likely to speed up the rate money flows into the loans. Why would you want to buy into the loan simply to sell quickly? There is no risk of not earning interest since MT have already funded it and pay interest immediately. You can't add a premium on the MT SM and, by delaying your investment, you simply delay earning interest. Confused.
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Jun 4, 2016 14:40:40 GMT
Why would you want to buy into the loan simply to sell quickly? There's more in P2P than just these loans. Someone can see a better deal elsewhere or just a nice diversification opportunity and prefer to switch some money to that. No flexibility = have to delay investing to get the same possibilities.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Jun 4, 2016 15:35:37 GMT
Why would you want to buy into the loan simply to sell quickly? There's more in P2P than just these loans. Someone can see a better deal elsewhere or just a nice diversification opportunity and prefer to switch some money to that. No flexibility = have to delay investing to get the same possibilities. So bearing in mind the removal loans took at least a month to fill and was a third of the size of this one with a first charge compared to this second charge one, it will probably take 3 months+ to fill without incentives. People don't want to commit to not being able to sell their investments for that length of time. With incentives added, I reckon it would fill in a week.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Jun 4, 2016 15:44:21 GMT
Hard to compare 13% vs 10%
|
|
|
Post by pepperpot on Jun 4, 2016 19:21:47 GMT
How long did the £1.3m 11% loan take to fill? A week or two?
|
|