SteveT
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Post by SteveT on Apr 13, 2016 14:38:57 GMT
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Post by MoneyThing on Apr 13, 2016 14:44:40 GMT
Afternoon paul123 & SteveT, All the loans that have been launched lately have taken a few days to fill and therefore decided to lift the restriction on these new loans. However, if you get the feeling that appetite might have come back again, we can easily put bid restrictions back on (perhaps at 1%)? If you think we should, then we can easily update the loans and send an email out to confirm. Kind regards, Ed |
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SteveT
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Post by SteveT on Apr 13, 2016 14:49:35 GMT
MoneyThing, none of the 3 loans are large and, at first glance, all 3 appear to be "of interest". Given shelves elsewhere are now largely bare too, I'd suggest a 1% limit for 24 hours would be wise to avoid wider disappointment.
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Post by mrclondon on Apr 13, 2016 14:50:01 GMT
MoneyThing - since the beginning of the week all the overhang on SS has cleared including multiple lenders pushing 5 figure sums in loans, the overhang in MT has gone, most of the FS primary market overhang has cleared, and most of the FS secondary market discounted parts have also cleared ... I'm selling stuff (4 figure sums) there at -0.25% for which fair value is -0.75% or -1%. Market liquidity has swung ... and I think it would be prudent for 1% limits on these loans for 24 hours.
EDIT: cross posted with stevet
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Post by MoneyThing on Apr 13, 2016 14:55:35 GMT
Thank you for your comments SteveT & mrclondon. Perhaps it would be best to put restrictions in place and then review after. Kind regards, Ed. |
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 13, 2016 14:59:38 GMT
Have to agree with SteveT. 2 of these are very small loans and could potentially be taken out by one lender if they were in the mood. I dont think the recent loans are a particularly good data set due to their relative size and a continued degree of uncertainty when it comes to the luxury cars/AE portfolios. How long did BPF370 take to go, or the smaller car loans, not to mention the CS portfolios? I think you need at least a 1% limit on the smaller two loans, maybe even .5% on the 80k one. Can you adjust the restriction duration, maybe remove it at 9pm when most people will have got a look in (or maybe midnight to be sure)? Last thing you want is an irate gorilla bending his banana bashing his keyboard to snaffle a slice  |
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Post by MoneyThing on Apr 13, 2016 15:30:17 GMT
I concede that I was mistaken by thinking that there was too low of an appetite to require bid restrictions since a significant amount of funds has just been deposited over the last hour.
You are all clearly closer to the coal face to gauge these things so thank you for the prompt.
Regards,
Ed
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ben
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Post by ben on Apr 13, 2016 15:31:37 GMT
I think some people were waiting for the new ISA but have given up as there is no in sight so could be a reason why a bit has gone in last week or so.
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mikeh
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Post by mikeh on Apr 13, 2016 15:55:12 GMT
I think some people were waiting for the new ISA but have given up as there is no in sight so could be a reason why a bit has gone in last week or so. or they've transferred prior year ISA money into a flexible ISA and have now taken it out again. Can't get mine until tomorrow!
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guff
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Post by guff on Apr 13, 2016 18:46:40 GMT
I concede that I was mistaken by thinking that there was too low of an appetite to require bid restrictions since a significant amount of funds has just been deposited over the last hour. You are all clearly closer to the coal face to gauge these things so thank you for the prompt. Regards, Ed Thank you for listening Ed. And acting. [/AlarmClock]
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Post by bracknellboy on Apr 13, 2016 19:29:19 GMT
MoneyThing: have to say I'm quite confused by the tranche A / tranche B P*******Y loan. Understand that they both benefit from first charge but with B ranking behind A (whether actually that should be reflected by a first and second charge I'm not sure, but not really my point). There is a borrower asset sale due in 3-4 months which is stated as sufficient to pay off both tranches. Fine. The B loan is only 6 weeks. So presumably a separete but undeclared source of refinance / payoff is available. The A loan is 6 months. Yet the B loan is higher rate on the basis that it ranks behind the A. That would all make sense if they were co-terminous. But they are not. It would also make some sense if the reason for the difference in rate was because of the duration of the loans. But as it is the fact that their is a clear intent to pay off B before A by some very considerable margin suggests their is a balancing of risk depstie the priority. Just all seems a bit odd. It would have made a bit more sense - to my very simple mind - if B had ranked ahead of A (given that the security on A would then improve assuming the paydown of B proceeds as planned) and the loans had same rate, for example, or A had the higher rate. Not complaining, just a bit bemused.
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SteveT
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Post by SteveT on Apr 13, 2016 19:56:49 GMT
My assumption was that the 6 month loan had been under discussion for a while and that the "extra" 6 week loan was something of an afterthought. But that's just a pure guess.
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Post by MoneyThing on Apr 13, 2016 19:57:52 GMT
MoneyThing : have to say I'm quite confused by the tranche A / tranche B P*******Y loan. Understand that they both benefit from first charge but with B ranking behind A (whether actually that should be reflected by a first and second charge I'm not sure, but not really my point). There is a borrower asset sale due in 3-4 months which is stated as sufficient to pay off both tranches. Fine. The B loan is only 6 weeks. So presumably a separete but undeclared source of refinance / payoff is available. The A loan is 6 months. Yet the B loan is higher rate on the basis that it ranks behind the A. That would all make sense if they were co-terminous. But they are not. It would also make some sense if the reason for the difference in rate was because of the duration of the loans. But as it is the fact that their is a clear intent to pay off B before A by some very considerable margin suggests their is a balancing of risk depstie the priority. Just all seems a bit odd. It would have made a bit more sense - to my very simple mind - if B had ranked ahead of A (given that the security on A would then improve assuming the paydown of B proceeds as planned) and the loans had same rate, for example, or A had the higher rate. Not complaining, just a bit bemused. Evening bracknellboy, Tranche A (£275,000) is a 6 month loan which will be repaid from the sale of the borrower's Hotel (due to complete in 3 to 4 months). Tranche B (£80,000) is a 6 week loan which will be repaid from the sale of the borrower's Restaurant (due to complete in 3 to 4 weeks). The borrower didn't want to borrow £355,000 for 6 months when they knew that they will be able to repay £80,000 of the £355,000 within 6 weeks once the Restaurant sale goes through. Therefore the total facility was undertaken with two separate loan agreements to allow part repayment of the £80,000. Kind regards, Ed
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Post by bracknellboy on Apr 13, 2016 20:08:06 GMT
Makes a bit more sense.
Did you just update the details on the website or was it my addled brain that missed the restaurant vs. hotel differentitation: I'm plumping for Leicester to win the premiership at the start of the season type odds - but reversed - that it was the latter.
It will be good to see a restaurant being used to re-pay a loan rather than sucking in and subsequently defaulting on one.....
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Post by MoneyThing on Apr 13, 2016 20:12:12 GMT
Makes a bit more sense. Did you just update the details on the website or was it my addled brain that missed the restaurant vs. hotel differentitation: I'm plumping for Leicester to win the premiership at the start of the season type odds - but reversed - that it was the latter. It will be good to see a restaurant being used to re-pay a loan rather than sucking in and subsequently defaulting on one..... I'm afraid the listing always stated restaurant vs hotel! 
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