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Post by cassiopeia on Apr 11, 2016 12:37:51 GMT
Is there a way of finding out what secondhand loans have actually sold for. Presumably if that's possible investors will able to price their portfolios based on market price and returns properly allowing for defaults and late payments.
Why are there are so many written off loans for sale on the secondhand market without a discount. Are they hoping a heavy handed debt collector will take these up, or are they just hoping someone's finger will slip?
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carlos
I'm short Bondora and long p2p.
Posts: 104 
Likes: 21
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Post by carlos on Apr 11, 2016 12:54:06 GMT
I don't think there is anything else than our www.bondpicking.com - our approach is pretty simplistic because diving into details would require very complex models. But you can manually search for loans (by ID) to find their past transactions on 2ndM. |
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Post by wiseclerk on Apr 11, 2016 13:16:12 GMT
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carlos
I'm short Bondora and long p2p.
Posts: 104
Likes: 21
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Post by carlos on Apr 11, 2016 13:31:54 GMT
Why are there are so many written off loans for sale on the secondhand market without a discount. Are they hoping a heavy handed debt collector will take these up, or are they just hoping someone's finger will slip? Hard to tell why is Bondora satisfied with 2ndM cluttered with loan parts with negative XIRR... Try to ask them..
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Post by oktaeder on Apr 11, 2016 14:12:33 GMT
You can use now the new link in daily cashflow, but you have to change search option after clicking to "sold on 2ndM".
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james
Posts: 2,205
Likes: 955
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Post by james on Apr 11, 2016 14:44:19 GMT
Why are there are so many written off loans for sale on the secondhand market without a discount. Are they hoping a heavy handed debt collector will take these up, or are they just hoping someone's finger will slip? Much of the potential value in a defaulted loan is the unpaid interest and penalties. I've sold such loans at the maximum permitted 40% of capital markup and still provided an XIRR for the borrower of more than 90% that was delivered when the defaulted borrower made all capital and interest payments. People offering them for sale are taking a pessimistic view that there will be no more payments, inviting possible buyers to take an optimistic view that there will be enough to make it profitable. I think that this is probably not a good deal in the case of written off loans. Much more likely to have a positive result before write off.
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Post by cassiopeia on Apr 11, 2016 15:16:00 GMT
How can anyone extract more money from a write off? Presumably if someone is willing to buy it, it isn't a write off, almost by definition? Perhaps there's an assumption it will just revert to a 'recovery' as new debt collectors are appointed, or it's bought by those very people? Looking at the data there seems to be an awful lot of write offs sold successfully without any or minimal discount.
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